If I Pay Off The Back Taxes On A Home, Will I Own It?

I’m Ilyce Glink and here’s today’s real estate question: If I pay off the back taxes on a home, will I actually own it? Okay here’s your answer: not quite. Let me explain. If a property owner doesn’t pay the tax bill for a piece of real estate, the county assessor can actually sell the property to someone willing to pay the taxes. But in most cases, the investor who pays the tax bill doesn’t immediately get ownership of the property. Instead, the original owner has time to repay the investor the amount of the tax bill plus some interest rate, which is called redeeming the taxes. In many counties the owner has up to two years to bring the tax bill current and the investor might receive as much as 18 percent interest over that time. Now in an era where interest rates are at historic lows, 18 percent is a pretty awesome rate of return. And many people go into buying up properties at tax sales but aren’t really looking to take possession of the property. They’d rather have the homeowner redeem the taxes and earn a good return on their initial investment. Occasionally, there are situations where a tax sale may have been in error and the person that put up the money to buy the unpaid taxes at the auction may end up getting his or her money back, but they won’t get any interest on the cash. That’s not so good. If the taxes are redeemed, then the owner actually keeps the property. But if the two-year period elapses and the owner fails to repay the amount that’s owed plus interest, the title in the property would transfer to the ivnestor. And trust me, many investors wind up with title to the property. I have a friend whose brother lost several properties he owned because he failed to pay the back taxes. This is incredible to her. The properties were worth several hundred thousand dollars apiece and the investor picked them up for less than $10,000 per property. Wow. Now, that is an amazing rate of return, right? Even if the propeties needed a tremendous amount of repair. To find out more, contact the assessor’s office in your area. Thanks for your question. Don’t forget to share this video and follow me on Twitter and Facebook. Until next time. I’m Ilyce Glink.

16 Replies to “If I Pay Off The Back Taxes On A Home, Will I Own It?

  1. I have a question for you can you sell a house ๐Ÿ  before u have it appraised and the title searched?

  2. Caution: This is not a sale of real property. It is a lien for the amount of delinquent taxes plus interest and other fees. Contact with property owners initiated by certificate owners to encourage payment at any time is not recommended. Contact or behavior of a certificate holder deemed unfair or deceptive may result in criminal prosecution.
    An "Action to Foreclose" filed in the Superior Court three years from the sale date is the only method to compel payment.

  3. I have paid the property taxes on land left to my deceased Father and all his deceased siblings for the past seven years. Is it possible for me to obtain ownership of this land now?

  4. We JUST found that our landlord hadn't paid property taxes, so they will be auctioning this house we are renting. Can I take ownership by the taxes at the auction?

  5. Please help I lived with my common law since 1988 and now he died in March 2018 and now the family sold the house and his niece promised me $50,000 and $10,000 relocation fee for the Taxes and Mortgage and fire insurance I paid for years. Yet when Louie got on Disablity cause he could not work anymore I been paying the Mortgage and taxes for years(Since around 2010). I got proof payed it through the Banks. Now they changed everything and told me they would give me only $2,000 to relocate. And said the lawyer said she had no right to offer me that much cause Louie's son who is in prison for a drive by shooting and the say. I was told he has no rights as long as he is in prison. It is the reason they sold the House(Cash only) cause no Will. Probate Courts told Niece who has power of attorney has a small window of opportunity to sell. Or it goes back into Probate. The son in prison will never consent to the money she offered. California does not acknowledge Common-law. They only gave 3 days to move out. Heard a Friend says his brother stopped payment on Mortgage He paid it off and moved in. Paid on it for years then his brother took it to court to get house back. Courts would not give him house back cause his brother paid taxes for years.What can I do? 3 days is not a lot of time for my son and I to relocate our selfs. Please your advice is much appreciated. My son and I are on Disbality and price of living in California is very high. They are actually throwing us in the streets. With $2,000 relocation fee when in reality it is much more. We were to stay here for 6 years and pay mortgage until he gets out of prison. But it all changed.

  6. Not in the state of Florida if the taxes aren't paid by the owner the house or property goes up for auction, the initial invest gets their money back plus the investment. Or if no one bids on it at auction that is the only way the investor gets the property. These things are different state to state. and county by county

  7. What about other liens on the property? From small claims, mortgages, or whatever else? Would I be liable to pay them? This doesn't seem to get mentioned in any information about tax deeds.

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