After losing your Georgia house to a tax sale, you may redeem it.
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.
In Georgia, any unpaid property taxes constitute a lien on your house. If you fail to pay the sum owed, the sheriff will most likely perform a nonjudicial tax sale (the most frequent kind of tax sale in Georgia) and sell the property to a new owner.
In general, persons who lose their house due to a tax sale in Georgia have two alternatives for reclaiming it: redeeming it or setting aside (reversing) the sale. So you have the option to pay down the outstanding payments, plus interest, and “redeem” the property within a certain time frame. However, if you don’t pay, you’ll lose your opportunity to retain your Georgia house unless you can invalidate the completed tax sale, which is unusual.
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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.
During the redemption period, the homeowner usually has the right to dwell in the house. The length of the redemption period varies by state; one year to three years is normal. However, in certain places, the time limit is substantially shorter.
What Is the Redemption Period Following a Georgia Tax Sale?
In Georgia, after a nonjudicial tax sale, you have a 12-month redemption period in which you may refund the purchaser for the sum paid at the sale, plus extra payments, and return your house. Georgia Code Ann. 48-4-40.
The Purchaser Must Foreclose Your Redemption Right
The opportunity to redeem may actually be open for a longer period of time, depending on when the tax-sale purchaser takes steps to terminate your right of redemption. To obtain possession of the house, the purchaser must wait 12 months after the sale before foreclosing your right of redemption by providing you with written notice that the right to redeem will expire on a certain date. You may redeem until the notification’s expiry date, which is usually approximately 30 days following the notice. Georgia Code Ann. 48-4-46.
So you have at least a year to redeem, perhaps a little longer, depending on when the purchaser from the tax sale chooses to terminate your right of redemption.
How Much Money Will You Need to Redeem Your Georgia Home?
To redeem your house, you must pay:
the amount paid for the property at the tax sale; a premium of 20% for the first year or fraction of a year that has elapsed between the sale date and the redemption date (and 10% for each year or fraction of a year thereafter); any taxes paid on the property after the sale; and any special assessments on the property. Georgia Code Ann. 48-4-42).
If you do not redeem within 30 days of receiving the notice, you must additionally pay the sheriff’s costs for serving you with the notice and publishing the notice in a newspaper. Georgia Code Ann. 48-4-42, 48-4-45. Georgia law requires the purchaser to furnish the sheriff with the notification 45 days before the right to redeem expires. The sheriff must serve you with a copy of the notification within 15 days. Georgia Code Ann. 48-4-46.
Putting a Completed Tax Sale Aside
In certain rare cases, such as if the tax lien or tax sale procedure was flawed, the taxes were paid or not owing, or there was excusable negligence, you may be able to invalidate a completed tax sale. The grounds for invalidating a tax sale, as well as the processes for doing so, are extensive. If you lose your property in a tax sale and want to learn more about putting the sale on hold, contact an experienced lawyer as soon as possible.
How to Reduce Your Property Taxes
Even though you will have a redemption time after a Georgia tax sale, it is usually advisable to take action before your taxes become late in order to make them more inexpensive. For example, you could:
Find out whether you qualify for a property tax abatement, or seek a revision in the property’s assessment if you believe the assessed value does not represent the fair market value.