Following a Florida tax deed auction, you may be able to reclaim your house by swiftly paying up the outstanding taxes, plus interest, fees, and maybe additional penalties.
If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. When taxes are not paid, the taxing authority will either sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another way to get title to the house) or sell the property itself in a tax sale. In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.
The tax collector in Florida will first sell the tax lien in a tax lien sale. The purchaser at the tax lien sale receives a tax certificate as well as the right to collect the unpaid tax obligation plus interest from you. The individual that charges the lowest interest rate on the debt will be the successful bidder at the tax lien auction. If you do not pay the past-due sums, the tax collector may sell the house in a public tax deed auction.
Table of Contents
The Right to Redeem Generally, after a tax sale,
In most jurisdictions, delinquent taxpayers have a certain length of time following a tax sale to redeem their house by paying the buyer the sum paid at the auction or paying the taxes due, plus interest, penalties, and expenses. In certain places, the redemption period takes place prior to the sale. However, if you do not redeem, the purchaser will be able to get title to the house free and clear of any liens that existed prior to the sale.
A Redemption Period occurs prior to a Florida Tax Deed Sale.
You have at least two years after the tax lien sale to redeem the property before it is auctioned in a tax deed sale, according to Florida law. This is because the lien purchaser must wait two years from the day the tax certificate is issued before making an application to the tax collector for a tax deed. 197.502 (Fla. Stat.). The application results in the sale of a tax deed.
If seven years pass from the date of issue of the tax certificate, but the purchaser does not apply for a tax deed, and no other administrative or judicial procedure, including bankruptcy, is on record, the tax certificate expires and becomes null and worthless. Florida Statute 197.482.
Short Redeeming Period Following a Tax Sale
The clerk of the circuit court will convene a tax deed sale if the purchaser requests for one before the certificate expires. The house is auctioned off to the highest bidder. 197.502 (Fla. Stat.).
You may redeem after a tax sale, but you must act quickly. You have till the following date to redeem:
The tax deed is issued by the county clerk once the court clerk receives full payment for it. Florida Statutes 197.472, 197.552.
If you want to redeem the property, you should pay off the tax bill long before the sale.
How Much Money Will You Need to Redeem Your Florida Home?
To redeem the property, you must pay the face value of the tax certificate, plus interest and charges. Florida Statute 197.472.
If the lien purchaser bid less than 5% interest on the debt while purchasing the lien, you may be required to pay a mandated minimum fee of 5%. However, if the purchaser bid a 0% interest rate while purchasing the lien, you are exempt from this penalty. Florida Statute 197.472.
How to Reduce Your Property Taxes
Even while you’ll have some time to redeem your Florida house before it’s sold in a tax deed sale, it’s usually advisable to act sooner to attempt to reduce your taxes. For example, before becoming behind on your taxes, you could:
Investigate if you qualify for a property tax abatement, or contest the taxable valuation of your house if you believe it is inaccurate.