and county tax collectors, along with the IRS, recover costs of securing the lien and late payment fees. In some cases, tax liens lead to tax certificate sales. These let investors inherit the debt by bidding on the amount of interest they will accept on the tax debt. Homeowners need to pay interest, in addition to the debt they originally owed under the lax lien. Investors can request a foreclosure sale if the homeowners do not pay. The investor will then receive payment from a new buyer. The policies governing foreclosure for property taxes vary by the area. For some local governments, the most common practice is that if the bill stands unsettled after the statutory period, the county issues a deed for the property, making it possible for the property be sold at a public auction. Interested investors can then silently bid for the house with the successful bidder becoming the new owner. Initially, a notice will be sent to the debtor by the County Office that necessary arrangements have been made to auction off the property.
DISTRIBUTION OF FUNDS F FUNDS FROM FORECLOSURE
The proceeds from a sale in foreclosure are normally distributed as follows: • The county has priority and takes what’s owed in back taxes, interest, and any other penalties and charges incurred and imposed. • Administrative fees are also deducted. • What remains is available for claiming by the original owner of the property foreclosed.
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