What Ohio Homeowners Should Know About Property Tax Foreclosures

Most homeowners know that nonpayment of their mortgage results in the initiation of the foreclosure process. But most of them are unaware that tax delinquency can also result in the foreclosure process being started against their homes. In Ohio, government institutions can legally undertake foreclosure against homeowners who fail to pay their property taxes.

It becomes imperative for homeowners to familiarize themselves with the process of tax foreclosure.

Why property taxes matter 

Your property taxes pay for schools, law enforcement, firefighting services, road repairs, and other infrastructure. As these taxes are one of the sources of income for your municipality, it is only natural that county authorities view them seriously.

With time, when the taxes continue to go unpaid, interest charges and penalties accrue, which add to the total sum of money that should be paid back by the homeowner.

How tax foreclosure begins 

Property taxes in Ohio are collected by county treasurers. If the tax payment has not been made, the county can refer the matter for foreclosure.

Unlike foreclosure on a mortgage, which is initiated by the lender, tax foreclosure is brought about by taxes owed to the state. Once the notice of foreclosure is served, the property owner receives it.

The most detrimental step a property owner can take is to ignore the notice from the county treasurer. Ignoring it means defaulting and the subsequent auction of the property.

What happens during tax foreclosure? 

Once the court rules that there are overdue taxes and the debt remains unpaid, the court can order the sale of the property to clear the tax arrears.

There are different ways the property can be sold, such as through a sheriff’s sale. The proceeds from the sale go toward the payment of delinquent taxes, interest, fees, and foreclosure penalties.

In some instances, the balance might revert to the previous owner of the land, but this rarely happens, as many people lose equity in such sales.

Are there ways to avoid tax foreclosure? 

Fortunately for the homeowner, there are usually several courses of action before the foreclosure ends in a sale.

Among the options that depend on the situation can be:

• Making an arrangement to pay the taxes due with the county
• Pay the back taxes owed in full
• Take advantage of any tax relief programs available
• Dispute the accuracy of the assessment or foreclosure proceedings
• Explore other means to clear the debt

The sooner the problem is addressed, the more options will become available.

The importance of acting quickly 

Individuals often put off dealing with their tax issues because they are daunted by the task or think that there will be an opportunity later on to fix the situation. However, postponing such action could lead to interest, penalties, and costs piling up.

Early action allows you to negotiate with the relevant authorities regarding your payments and even find defenses for your property.

Talk to a Dayton, OH, Foreclosure Defense Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of Dayton residents who are facing foreclosure. Call our Dayton foreclosure defense lawyers today to schedule an appointment, and we can begin protecting your home right away.