How does your state/town handle unpaid property taxes

JOCCO · Nov 13, 2011

Real estate including tractors farm equipment. Here they are pretty lienent and takes forever to forclose. Latly some towns has stopped mobile homes from being moved if the taxes are in arrears. Heard years ago they could sieze a crop/stop work on the prperty till they were paid. Anyway fire away

sixtyninegmc · Nov 13, 2011

Our borough (our version of a county) auctions off the rights to the lien on the property. Lets private citizens do there dirty work of collecting back taxes. I`m waiting for someone to get shot from the whole deal and bring it to a screeching halt. Some poor joker buys a $10,000 lien on a meth lab for $100, good luck collecting :roll:

Tony in Mass. · Nov 13, 2011

Most places in the northeast, the land is the only thing the gov't will take, but if there is a mobile with a mortage, the bank will haul it away first, stick built, it stays. They don't want 'stuff', just the taxed real estate. Where I am now, no one doesn't pay taxes, if the home owner loses it to the bank, the bank will pay the town. Where my big farm was, if there was no leans, after the third year, public auction, who ever wins the bid has to write a check then and there. Everything still on it is now their's too- like crops, tractors- stuff. Usually, the owner will come up with a few bucks to keep the town away from the door, always 'in arears' lets you keep it and stay there, but if they sell it, ALL the back taxes and interest and penalties will get paid first. That takes the joy out of finding a way off the farm...

NY 986 · Nov 13, 2011

It would be unusual in my mind to have tractors and equipment fall under the category of real estate. Lawyers wrangling tends to stall the process but normally a property is not allowed to be more than one year in arrears. The remedy here in New York is seizure of property and auctioning off to pay taxes. It gets more complicated when there is a loan against the real estate. A bank will pay the taxes to protect its interest if there is a loan involved that can not be readily resolved/ paid. Taxes takes precedence over any other financial interests in this state so banks are alway monitoring loans involving real estate due to this.

Jimmy King · Nov 13, 2011

In Missouri Land is real estate, Cars tractors etc. are personal property. If you don"t pay your personal property you cannot get licences for your cars or renue them. After a few years they will auction off real estate on the court house steps.

Tim(nj) · Nov 13, 2011

Here in New Jersey, farm equipment is not taxed as property (which is surprising considering they tax almost everything else) . . . but if someone is delinquent in paying property tax on land and/or a home and buildings, within a year, said person will get a notice of Sheriff's Sale to settle the tax debt.

PJH · Nov 13, 2011

True real estate (land only) is auctioned on the courthouse steps after a reasonable grace period. Farm machinery, automobiles, livestock, pets, home furnishings, etc are considered personal property, and have been since the mid 70's? when Illinois invoked the 3% state income tax, which was raised to 5% recently. The recent income tax raise, which is 67% according to one party, and 2% according to the other, has driven a few dim thinkers from our midst.

Spook · Nov 14, 2011

In Michigan, if you don't pay them, they send you a foreclosure notice. That takes about a year. I think it can drag out about 3 years before it finally results in eviction. That is on a home.

LJD · Nov 14, 2011

I've bought several foreclosed homes and bare properties in northern Michigan, Florida, and in New York state. The counties and the states have tax sales every year. It's a slow process, but if you don't pay your taxes they will take ownership of your property.

When the county seizes property here in central or Adirondack region of NY, they void all judgements and liens before selling it at auction.
This spring a guy near me gave up his house and 20 acres. Purchase price was $80,00 and he owed $100,000 when the county seized it. It sold free and clear at the auction for $26,000.

New York (in my area) seems to do it the fastest, and Florida is the slowest. In Florida, often peoples names are published - who haven't paid their taxes - and outside investors can pay their taxes for them as a sort of investment.

kyplowboy · Nov 14, 2011

Our county used to be real slow about go'n after unpaid property taxes. They had folks on the books for years own'n more on run down homes that the place was worth. Taxes are due first of the year and now they run the names and amounts in the local paper about April and then they sell the tax bills about the end of July. Any one can pay the late taxes, get a lein, and send the property owners a letter say'n that they owe you the ammount paid, plus intrest, and "handling" fees. Then they have a few years to pay up with more intrest before the tax buyer can forclose. Often times it's just an empty lot some where and the owners will be an estate or trust that has not been well take'n care of and the out of town folks will just give the deed to who ever paid the taxes rather than fight it.

Dave

JML755 · Nov 14, 2011

Yeah, in Michigan, 3 yrs of unpaid taxes will get you a foreclosure notice and a Sheriff's sale. Regularly abused by people who ALWAYS wait to pay their taxes until they absolutely have to, even if they've got the money to do it.

How does your state/town handle unpaid property taxes

JOCCO

Well-known Member

sixtyninegmc

Member

Tony in Mass.

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NY 986

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Jimmy King

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Tim(nj)

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PJH

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Spook

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LJD

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kyplowboy

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JML755

Well-known Member