What Happens When Your Property Goes To a Tax Sale?

When you ignore paying your property taxes promptly, you may face negative consequences — foreclosures and tax lien. Once your property gets tax lien, you have to pay all delinquent property taxes comprising interest and penalties.

Explaining property tax lien

If you fail to pay property taxes or similar municipal charges related to water, electricity or sewer, then due amount will convert into lien on your property. When a company faces such a situation, it must leverage commercial real estate financing options. Every state in the U.S. has laws empowering local governments to sell the property in question through specific tax lien process. By doing so, the state government easily recovers the delinquent taxes.

Saving your property from a tax lien sale

Despite a tax lien sale, you own the property as the investor/purchaser only buys a lien that is against your piece of real estate. If, however, you pay the lien amount along the interest, you get the certificate of redemption and keep the property.

Discovering the certificate of redemption

Once you repay taxes with interest, you will get a tax redemption certificate, which is issued by your state’s tax authority. This certificate states that, now, your property is free from the tax lien; i.e., you have paid all the taxes and late-payment fines completely. This legal document will relieve the mortgage holder from paying any more tax lien payments, and it is especially important when you have to sell a property. Only a certificate of redemption can remove tax lien completely.

How does Park West Capital show the way?

Traditional lending institutions, such as banks, are often reluctant to issue a loan to lenders seeking a mortgage for getting the certificate of redemption. If, however, you are a lender facing similar situations, approach Park West Capital — an alternative lending creditor in Florida. This creditor has different financial products to resolve real estate tax liability and offers several financial mortgage products, such as bridge loans and other refinancing opportunities.

These alternative financial products — especially the refinance commercial mortgages — suit your situations, come with flexible payment terms, and are delivered to your account in the shortest turnaround. This alternative lender has aided many Floridians who were about to lose their properties due to tax lien. Because of these and many other factors, Park West Capital is one of the leading real estate financing companies in Florida. For any further questions, email at info@parkwestcapital.com or call 800-969-4901.