Getting Your Home Back After a Pennsylvania Property Tax Sale

You may be eligible to redeem your house after a Pennsylvania property tax auction. Find out more.

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.

When you become behind on your property taxes in Pennsylvania, your house may be auctioned in an upset tax sale to settle the obligation under Pennsylvania’s Real Estate Tax Sale Law. If the property fails to sell at the upset tax auction, the tax claim bureau may hold a judicial tax sale. (A judicial tax auction is handled through the court system.) If a property fails to sell during the judicial sale, it is placed on a repository list.

After a person loses their house owing to unpaid property taxes, Pennsylvania law generally does not enable redemption (paying off the debt to recover the property). However, homeowners have the right to redeem in certain conditions and jurisdictions. Alternatively, you may be able to work out an agreement to either pay off the outstanding sum or invalidate the transaction.

How Do Pennsylvania Tax Sales Work?

In most cases, property tax sales in Pennsylvania are controlled by the state’s Real Estate Tax Sale Law. Again, if you get behind on your property taxes, your house is first placed up for auction in an upset tax sale under this statute. If the property fails to sell, it is normally auctioned in a court tax sale. When a property fails to sell during the judicial sale, it is placed on the repository list. See What Happens If I Don’t Pay Property Taxes in Pennsylvania for further information on each of these steps.

In general, there is no right to redeem your home in Pennsylvania.

According to Pennsylvania’s Real Estate Tax Sale Law, you cannot redeem your house once it has been sold. (72 P.S. § 5860.501). However, in rare cases, you may be able to redeem yourself.

Redemption is permitted in several counties.

County commissioners have the authority to enable the redemption of property acquired in a tax auction provided all taxes, interest, and charges are paid in full, less any penalties (72 P.S. 5879). In addition, if the county acquired the property during a tax sale, commissioners have the authority to reach a compromise arrangement with the owner for less than the whole sum owed, subject to court approval (72 P.S. 5876).

Some counties have a nine-month redemption term under the state’s Municipal Claims and Tax Lien statute, during which you may redeem the residence. (53 P.S. § 7293). A unoccupied property, on the other hand, is not redeemable. (53 P.S. § 7293(c)).

Consider consulting with a lawyer to see if you have the right to redeem in your case.

How Much Does Redeeming the Property Cost?

If the county authorizes redemption of property acquired during a tax sale, you must pay all taxes, interest, and charges owed, minus any penalties, in order to redeem. (72 P.S. § 5879).

Cancelling an Unexpected Tax Sale

In rare situations, you may be able to overturn a tax sale. Following an unsuccessful tax sale, the tax claim bureau is required to submit a report (a return) with the court. If the necessary processes were not followed during the sale, you have 30 days after the court certifies the return to register an objection. (72 P.S. § 5860.607). For example, if you were not provided enough notice of the transaction, you may opt to register an objection.

If the court agrees with you, the tax sale may be declared void. (72 P.S. § 5860.607). If you wish to fight the tax sale proceedings, the methods and requirements for submitting objections or exceptions with the court might be extensive, so consider hiring a lawyer to assist you.

How to Avoid a Tax Lien in Pennsylvania

Even if you have some time to redeem your Pennsylvania property following a tax sale, it is always advisable to take action before you fall behind in order to make your taxes more inexpensive. You might do the following before your taxes become delinquent:

Investigate if you qualify for a property tax abatement, or contest the taxable valuation of your house if you believe it is inaccurate.