Returning to Your Home Following an Ohio Property Tax Sale

Following a tax lien sale or a tax foreclosure in Ohio, you will have the option to redeem your house by bringing your past-due taxes current, plus interest and other fees.

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 fail to pay your property taxes in Ohio, the county treasurer has the authority under state law to collect the arrears by selling a tax-lien certificate. If a tax lien sale occurs and you do not pay the late payments, the person or company that purchased the certificate may foreclose on your house. Alternatively, Ohio law authorizes the county treasurer to immediately foreclose and sell the property at a foreclosure sale to settle your tax obligation.

Fortunately, following a tax lien sale and in a tax foreclosure, you will have the option to preserve your property by bringing your past-due taxes, plus interest and other fees, up to date.

In Ohio, how long is the redemption period after a tax lien sale?

Again, in the instance of a tax lien sale, the person or organization that purchases the lien may ultimately foreclose on your house if you do not pay the outstanding sums.

Following a tax lien sale, a one-year time must elapse before the purchaser may begin foreclosure proceedings to obtain possession of your property. (Ohio Revised Code 5721.37). During this period, you may catch up on outstanding taxes and other sums, preventing the purchaser from foreclosing. Even though the foreclosure process has already begun, you have the opportunity to redeem until the court certifies the foreclosure sale. (Ohio Revised Code 5721.38).

How Much Does It Cost to Redeem Your Home in Ohio After a Tax Lien Sale?

The redemption price varies depending on whether you redeem before or after the purchaser commences foreclosure proceedings.

The cost of redeeming before a foreclosure begins. To redeem before the purchaser commences foreclosure proceedings, you must pay a sum equal to the certificate price (or prices, if there are several tax certificates on your property), which includes taxes, fees, and interest. (Ohio Revised Code 5721.30, 5721.38).

The cost of redeeming after a foreclosure has begun. To redeem once the purchaser commences foreclosure proceedings, you must pay the certificate price plus 18% annual interest, lawyers’ fees, expenses, and other fees. (Ohio Revised Code 5721.38).

Using a Payment Plan to Catch Up on Delinquent Taxes

If you are unable to pay the redemption amount in full, you may work out a payment plan with the county treasurer to catch up on the outstanding sums. (Ohio Revised Code 5721.38).

How Do I Redeem My Ohio Tax Foreclosure Home?

If the county treasurer forecloses rather than selling the lien, a court will ultimately issue a judgment and sell your house to a new owner at a public auction. To redeem the property, you get up until the court certifies the sale. (Ohio Revised Code 5721.25). After the court approves the transaction, there is no redemption period.

How Much Does It Cost to Redeem?

To redeem before the county begins foreclosure proceedings, you must pay all past-due taxes, assessments, charges, penalties, and interest. (Ohio Revised Code 5721.18, 5721.25). If you redeem after the foreclosure process has begun, you must pay the above-mentioned sums plus charges, as well as demonstrate that the property complies with all relevant zoning requirements, land-use limitations, and construction, health, and safety standards. (Ohio Revised Code 5721.25).

Getting Behind on a Payment Plan

You may get into a contract with the treasurer to pay off the obligation if you have not previously failed on a payment plan for outstanding property taxes. (Ohio Revised Code 5721.25).

How to Prevent Getting a Tax Lien in the First Place

Even though you’ll have some time to redeem your Ohio property before losing possession permanently, 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.