You may redeem your West Virginia house after a property tax sale. This is how.
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.
If you fail to pay your West Virginia real estate taxes, the sheriff may auction the tax lien on your property. You will then have a limited time to pay down the unpaid payments, plus interest, and “redeem” the house. You will lose possession of your property if you do not redeem within the redemption term.
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How West Virginia Tax Sales Work
The sheriff sells the tax lien to the highest bidder during the tax auction. The buyer receives a certificate of sale and may later apply for a tax deed (title) to your house. If no one buys on the tax lien at the auction (or no one bids enough to cover the past-due sums), the state auditor receives the certificate and may sell the property later.
How Long Do You Have to Redeem Your Property Following a West Virginia Tax Sale If Someone Purchases the Lien?
You may maintain your ownership of the property after a West Virginia tax lien sale by redeeming the house at any time before a tax deed is issued. 11A-3-23 (West Virginia Code). The purchaser must seek a deed to get ownership to the residence. The lien purchaser may get the tax deed from the county clerk as early as April 1st of the second year after the sheriff’s auction. 11A-3-21 (West Virginia Code). As a result, most homeowners have around 18 months to redeem their property. However, your redemption period may vary.
Furthermore, under West Virginia law, a lien proved by a tax certificate of sale cannot remain a lien on real property for more than 18 months after the tax certificate of sale was issued. 11A-3-18 (West Virginia Code). If the purchaser fails to apply for a deed before the lien expires, the purchaser’s rights are lost, and the purchaser loses the opportunity to obtain title to the property.
How Long Do You Have to Redeem Your Property Following a West Virginia Tax Sale? If the Certificate is obtained by the State Auditor
Property that has not been sold at a sheriff’s sale or redeemed within 18 months may be redeemed at any time before the auditor certifies the property to the deputy commissioner for auction sale. (West Virginia Code 11A-3-38, 11A-3-42 through 11A-3-45). Property that has been certified as not sold and then certified to the deputy commissioner for sale by public auction may be redeemed prior to the auction by paying the taxes, interest, and charges owed. 11A-3-47 (West Virginia Code). Property sold at public auction by the commissioner may be redeemed at any moment before a tax deed is issued. 11A-3-56 (West Virginia Code).
What Will It Cost to Redeem My West Virginia Home Following a Tax Sale?
The amount you must pay to recover your house is determined by whether the lien is purchased at the tax auction or the certificate is turned over to the state auditor.
How Much Will You Have to Pay to Redeem Your West Virginia Home If the Lien Is Purchased?
If someone purchases the lien during the sale, you must pay the following to redeem your home:
the amount of taxes, interest, and charges due at the time of sale, plus 1% interest per month since the sale, all other taxes paid by the purchaser, plus 1% interest per month from the payment date, expenses incurred to prepare a redemption notice and any related title examination, but not exceeding $500, plus 1% interest per month, and certain additional costs (W. Va. Code 11A-3-23).
If the State Auditor obtains the Certificate, how much will you have to pay to redeem it?
If the state auditor receives the certificate and you wish to redeem it prior to certification for auction sale, you must pay:
the overdue amount of taxes, interest, and charges, plus 12% interest per year from the date of certification; all assessed taxes for the year in which certification occurred, plus 12% interest per year from the date you fell delinquent; and all taxes that would have been assessed since the certification (as if the certification had not occurred), except those for the current year, plus 12% interest per year. 11A-3-38 (West Virginia Code).
Again, property that has been certified as not sold and then certified to the deputy commissioner for sale by public auction may be redeemed prior to the auction by paying the taxes, interest, and charges owed. 11A-3-47 (West Virginia Code).
The amount required to redeem a property sold at public auction is calculated in the same way as the amount required to redeem a property sold at a sheriff’s sale, with the exception that it includes a deputy commissioner’s fee and commission. 11A-3-56, 11A-3-66) (West Virginia Code).
How to Reduce Your Property Taxes
Even though you will have a redemption time after a West Virginia tax lien sale, it is usually advisable to take action before your taxes become late in order to make them more inexpensive.
You may, for example, 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 isn’t indicative of the fair market value.