What is a delinquent tax sale?
In the United States, a delinquent tax sale is auction, usually carried out by the regional government to obtain unpaid real estate tax. There are two types of delinquent tax sales: Sales of tax lien and sale of tax lists. The sale of the tax lien obliges the buyer to pay the delinquent tax in return, for which he receives the right to collect these amounts and interest from the owner of the property. If the buyer is not repaid in a certain period of time, usually from one to two years, he may exclude the property. On the other hand, the sale of the tax list immediately gives the buyer the title of tax assets, although the original owner of the property may still have certain rights to repay the debt and restore the property. Most district operations in the US, such as schools, law enforcement, fire protection and road maintenance, are financed from the assessment of taxes on real estate owners. When these taxes are not paid, the ability of the region to pay for the services it provides to the inhabitants is to shit at ZHfrying. To obtain lost income, the Region is carried out by a delinquent tax sale. About half of the states in the US ensure auction of delinquent tax rights, while in the second half the acts themselves are auctioned. The rules, procedures, requirements and deadlines for such sales throughout the country and potential applicants should consult with the relevant regional authorities before the offer.
When real estate taxes become delinquent, a tax lien is placed on the property, which can be removed at any time by paying taxes, sanctions and due interest. Most regions regularly auction either lien or basic qualities, most often once a year. Before selling it is advertised in the legal part of the local newspaper for a specified period of time, usually at least four consecutive weeks. These ads record addresses and descriptions of properties, taxpayed taxes and instructions for offers.
Tax pledge is basically pMyscečka from the buyer to the owner of the property, because the participants present sealed offers specifying the interest rate, which they charge the owner of the property for the purchase. According to the rules and procedures of the region, there are many different ways to win a tax auction, but in all cases the winner must immediately pay delinquent taxes. Then the original owner has a period called redemption period - up to two years from the date of sale of tax lien - to apply the property by paying paid taxes, plus interest. The buyer may initiate the market closure proceedings only after the payment period has expired; And even when closing the market, the property owner can apply the property.
The original owner maintains assets after the tax lien and retains liability for all other costs such as mortgages and services. At any point during the purchase period, the original owner can apply this property and restore the title. If this happens, the buyer is not entitled to NemovITOST. If the Buyer of the tax lien excludes the property, any mortgages or other lien are dissolved, with the exception of lien imposed by the State or the National Government. To avoid this, most of the US mortgages generally require debtors to make monthly payments for a safekeeping account from which real estate taxes are regularly paid, instead of letting them pay themselves and maybe fallen.
Sales of tax documents is another type of delinquent tax sales. Instead of auction, a redeemable tax lien is sold to a real document for a property that may or may not be applied, depending on the state in which the auction is held. The sale is only carried out after all ponders have been warned, and the highest title of the property is won by the highest applicant. When the applicant wins the tax sale, any subordinate lien, such as mortar lien and mechanics, are dissolved; Only stThe sale and federal lien will survive the sale of tax lists.