real estate news

Property Tax Sales

“It’s 2 weeks before Sherriff’s sale (Tax sale) and I don’t’ have time to save my house, I fear I might lose it at auction do I have any options”?

Is it even possible to sell my house in 2 weeks and avoid the tax auction? YES

Will I lose ownership of my property if it sells at tax auction?

NO not for another 12 months but you need to start thinking about options. 

What are the options?

Let’s start with how property taxes work in Missouri.  Every year if you own any property there are real estate taxes owed to the county the property is in.  No matter if you have a mortgage or the property or it is owned out right.  Property taxes are still due every year even if it is inherited, held up in probate after someone passes or any other number of reasons properties get behind on taxes.

Consult your local counties tax assessor office for exact amounts owed if you are concerned your property is behind on property taxes. 

Find this by Googling (your county + property tax assessor ) and find your local county website to contact.

Let’s start with a property that is 1 year behind on property taxes.  Not too much changes other than the interest and fees that start being added to the outstanding balance which in the end just costs you (the owner more money out of pocket).

Properties that are 2 years behind in taxes are at an increased risk of slipping to the dreaded 3 year behind status and will be on up for auction for the backed taxes. When a property is 2 years behind on taxes with no payments been made the interest and fees on the first year start to compound more.  (They get you however they can)!

The properties that slip to the maximum of being 3 years behind before going to tax auction can be a scary time for the owner.  There are options though!  

Contact your local counties tax assessor (find them on google mentioned above) and let them know you want to set up a payment schedule directly with them in order to avoid going to tax auction.  No one wants to lose a property at auction because they don’t’ know a simple phone call could work out ways to keep it!

Sometimes it makes more sense for a homeowner to start reaching out to different investment companies or real estate agents to try and see if selling the property the way it sits makes the most sense. In a lot of cases it does!

“Do I have to catch up the taxes in order to sell my property”? 

NO IT DOES NOT NEED TO CAUGHT UP.

Investment companies buy properties every day that are behind on taxes.  The way it works is that the delinquent tax amount is subtracted from the overall purchase price (sell price) of the property.  No money is needed from the owner!

A lot of investment companies can include every single dollar for the entire house selling process (closing costs, title fees , recording fees etc.) in the purchase price of the property.  

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