Stopping a Tax Deed Sale — Options for Owners

How a tax deed sale happens

When property taxes go unpaid, the county sells a tax certificate on the parcel to recover the money it is owed. If the taxes stay unpaid long enough, the certificate holder can apply for a tax deed, which puts the property up for public auction.

If it sells at auction, the owner can lose the property and most or all of the equity in it. Only a portion of any overbid amount — if there is one at all — may be recoverable, and only through a separate claims process after the fact.

You can still redeem it

Up until the sale, the delinquent taxes can be redeemed — paid off in full, including interest and costs — which stops the auction entirely and leaves title with the owner.

The catch is time. The closer the calendar gets to the sale date, the fewer days there are to arrange the money and get the redemption processed.

Two ways I can help

Which one makes sense depends on whether you want to keep the house or get out of it with something in hand.

• Redeem the taxes. I can pay off or help fund the delinquent taxes directly so the county doesn't proceed to auction, repaid through an agreement worked out with the owner. The owner keeps the house and the equity.
• Cash purchase before auction. A straight cash offer on the property before it reaches the auction block, so the owner gets a fair number and walks away with something instead of risking losing all of their equity with no sale proceeds at all.

Timing matters

Call as soon as you know a sale date has been set — not the week of the auction. Redemption and a pre-auction sale both take time to arrange, and once the property sells, the options disappear.