This appendix represents Pacific Legal Foundation's compendium of tax foreclosure law assessments in 50 states and the District of Columbia. This page can be used to peruse states individually, or download the entire report by clicking here.
Alabama Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No.
- Citation
-
Ala. Code §§ 40-10-28(a)(1), -192.
Are there any exceptions to that rule?
- Analysis
-
Maybe. Under the state’s land sale procedure, the government has a “duty . . . if practicable” to sell the smallest piece of the debtor’s real estate “necessary to satisfy the decree under which it is sold and the expenses of the sale.” In theory, this could protect equity. However, it is unclear how often the government finds it “practicable” to sell smaller pieces of a debtor’s property.
Moreover, a recent Alabama Supreme Court decision casts doubt on the constitutionality of confiscating an owner’s equity when collecting taxes.
- Citation
-
Ala. Code § 40-10-16; see Douglas v. Roper, No. 1200503, 2022 WL 2286417 (Ala. June 24, 2022).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
There are two different procedures: one that operates as a hybrid tax-lien/tax-deed procedure and one that operates strictly as a tax lien procedure. In the hybrid land sale procedure, the government sells a certificate of purchase at a public auction to the highest bidder. This sale does not transfer title, and redemption remains open; the certificate holder must use an administrative procedure to apply for a tax deed upon expiration of a three-year redemption period. However, the certificate holder is entitled to immediate possession of the property.
Alternatively, in the tax lien sale procedure, the government sells a tax lien at a price fixed by the amount of the debt, and bidders bid down on the interest rate they will charge for redemption. The lienholder may bring a judicial foreclosure action within three years of the sale, which gives the lienholder the power to take full title to the property without any compensation for the debtor’s equity.
- Citation
-
Ala. Code §§ 40-10-15(a), -29, -74, -184, -197.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at a rate based on the federal underpayment rate per 26 U.S.C. § 6621, which has ranged from 3–9% since 2000. After a land sale, redemption carries an additional 8% interest on the surplus portion of the purchase price up to 15% of the market value of the property. After a tax lien sale, the interest rate is whatever rate was offered by the successful bidder (with a maximum of 12%).
- Citation
-
Ala. Code §§ 40-1-44; -122; -184(b). See U.S. Department of Labor, IRC 6621 Table of Underpayment Rates, https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/correction-programs/vfcp/table-of-underpayment-rates (last visited Sept. 22, 2022).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
The minimum redemption period under both procedures is three years from the time of sale. If the government is the purchaser at a land sale, redemption is available until the property is disposed of otherwise. If a tax lien is sold, redemption is available until the issuance of a final judgment of foreclosure.
Note that in the land sale procedure, the redemption amount is the purchase price, not the tax debt. The surplus is later refunded to the party making redemption.
- Citation
-
Ala. Code §§ 40-10-120, -197.
If equity is stolen, who profits?
- Analysis
-
In a land sale, the profit from the sale is kept by the government. Because the sale may be voided by redemption, properties commonly sell for significantly less than would be received in other types of auctions. Thus, investors also commonly enjoy a windfall at the debtor’s expense.
In a tax lien sale, the investor keeps all profits.
- Citation
- Ala. Code §§ 40-10-28(a)(1), -184, -197.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Administrative/judicial hybrid (used in the land sale procedure) or pure judicial (used in the tax lien sale procedure).
- Citation
-
Ala. Code §§ 40-10-1, -8, -29; -197.
What types of notice does the state require?
- Analysis
-
(1) Notice of delinquent taxes and impending land sale, (2) second notice of impending land sale, (3) notice of impending tax lien sale, and (4) notice of intent to file a foreclosure petition.
- Citation
-
Ala. Code §§ 40-10-4, -3, -6, -12, -182, -197.
Alaska Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The former owner is entitled to claim surplus proceeds from a tax foreclosure sale. Additionally, in many cases, the former owner has a right to repurchase the property after foreclosure by paying the tax debt plus interest and costs.
- Citation
-
Alaska Stat. §§ 29.45.480, 29.45.470.
Are there any exceptions to that rule?
- Analysis
-
Yes. For each tax-foreclosed property, the municipality must decide whether to sell it or retain it for public use. If it chooses to retain the property for public use or if it holds title for 10 years prior to selling the property, then there is no mechanism for protecting the owner’s equity. Theoretically, a municipality could designate a property for a public use (thus eliminating the former owner’s right to equity) and then later reverse that declaration, sell the property, and keep all the proceeds.
- Citation
-
Alaska Stat. §§ 29.45.460, 29.45.480.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells properties outright. Alaska’s tax foreclosure statutes do not appear to regulate sale procedures, leaving discretion to municipalities to adopt their own procedures. For example, Anchorage has adopted several alternative sale procedures in its municipal ordinances, including private direct sales and public auctions, although, in practice, it generally uses sealed bid auctions, as do most government entities in Alaska.
- Citation
-
Alaska Stat. Ann. § 29.45.460(b); Anchorage Muni. Code. § 25.30.090; Municipality of Anchorage Real Estate Services Office, So You’d Like to Purchase Municipal Tax-Foreclosed Properties . . . 5 (Aug. 2010), https://www.muni.org/Departments/hlb/Documents/08.10.10.4closed.props.guide.pdf.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Municipalities may set interest rates as high as 15% per year, and they may impose a separate penalty on delinquent tax collection of up to 20% of the principal.
- Citation
-
Alaska Stat. § 29.45.250.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
The right to redemption expires one year after the property is foreclosed and transferred to the municipality. If the property has not been sold or designated for public use, the former owner may effectively redeem it by applying to repurchase it from the municipality for the amount of the debt. This option expires after 10 years.
- Citation
-
Alaska Stat. §§ 29.45.400, 29.45.470.
If equity is stolen, who profits?
- Analysis
-
The government either designates the property for a public use or chooses not to sell it within 10 years of foreclosure.
- Citation
-
Alaska Stat. §§ 29.45.460, 29.45.480.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must make a claim for the surplus proceeds within six months from the date of sale. Upon completion of the sale, the municipality must give written notice to the former owner describing the amount of the surplus and the procedure for claiming it (which can vary by municipality).
- Citation
-
Alaska Stat. § 29.45.480.
What types of foreclosures are used in the state?
- Analysis
-
All delinquent properties must be foreclosed together in a single judicial action in rem.
- Citation
-
Alaska Stat. § 29.45.360.
What types of notice does the state require?
- Analysis
-
(1) Notice of all properties subject to foreclosure action, (2) additional notice before the expiration of the redemption period, (3) notice of the hearing at which the municipality will decide whether to keep or sell the property, and (4) written notice of the surplus to the former owner.
- Citation
-
Alaska Stat. §§ 29.45.330, 29.45.440, 29.45.460(c), 29.45.480.
Arizona Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. Typically, Arizona sells a tax lien at a price fixed by the amount of the debt, and bidders bid down on the interest rate charged on the debt. This procedure is incapable of generating any surplus proceeds to protect the owner’s equity. Upon foreclosure of the tax lien, the former owner has “no further legal or equitable right, title or interest in the property[.]”
- Citation
-
Ariz. Rev. Stat. §§ 42-18114, -18204(B), -18123.
Are there any exceptions to that rule?
- Analysis
-
Yes. If there are no qualifying bids at the tax lien auction, the tax lien is transferred to the state. Upon foreclosure of the tax lien, the county (on behalf of the state) sells the property outright to the highest bidder. Surplus proceeds from this sale are paid to the former owner of the property.
- Citation
-
Ariz. Rev. Stat. §§ 42-18113, 42-18301 to -18303(C).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at a price fixed by the amount of the debt. The winning bidder will be the investor that offers to charge the lowest interest rate on the debt.
- Citation
-
Ariz. Rev. Stat. § 42-18114.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
While the maximum interest rate is 16% per year, it is commonly lower, since the lien is sold to the investor offering the lowest interest rate. Arizona law also imposes a penalty at the point of the tax lien sale at 5% of the delinquency or $5.00, whichever is greater (meaning that this law, passed in 1997, contemplates that property may be sold over tax debts worth less than $100).
- Citation
-
Ariz. Rev. Stat. §§ 42-18053, -18114, -18107, -18153.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Typically, a property is susceptible to foreclosure three years after the date of the tax lien. However, redemption remains available until the final judgment of foreclosure is issued. In cases where the tax lien is held by the state, the property is not susceptible to foreclosure until five years from the date the lien was assigned to the state. Here, too, redemption remains available until the point at which a treasurer’s deed is issued.
- Citation
-
Ariz. Rev. Stat. §§ 42-18152, -18261, -18201.
If equity is stolen, who profits?
- Analysis
-
Equity is kept by the lienholder.
- Citation
-
Ariz. Rev. Stat. §§ 42-18114, -18204.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Typically, there will be no surplus proceeds because the price of the tax lien is fixed at the amount of the debt. However, in cases where no one purchases the tax lien, the property is transferred to the state for sale, and the law requires “[a]ny balance remaining with the treasurer after payment of the taxes, interest, penalties, fees and costs shall be paid to the owner of the property who was dispossessed by the sale.” Notably, the statute imposes an affirmative duty (“shall be paid”) on the government to ensure that the former owner is made whole.
- Citation
-
Ariz. Rev. Stat. §§ 42-18114, -18303(c).
What types of foreclosures are used in the state?
- Analysis
-
In most cases, Arizona uses judicial foreclosure in personam. However, in cases where the property has been transferred to the state, administrative procedures are available as well.
- Citation
- Ariz. Rev. Stat. §§ 42-18201, -18204, -18207, -18261.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) notice of all delinquent properties subject to tax lien sale, (3) notice before initiating the foreclosure action, and (4) notice of the application for a treasurer’s deed.
- Citation
-
Ariz. Rev. Stat. §§ 42-18106, -18109, -18108, -18202, -18264, -18265, -18266.
Arkansas Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes.
- Citation
-
Ark. Code Ann. § 26-37-205(b)(2)(A).
Are there any exceptions to that rule?
- Analysis
-
Yes. Upon application by eligible governmental agencies, the State Commissioner of Lands may choose to give the property to the agency for a public use without any payment to the former owner.
- Citation
-
Ark. Code Ann. § 22-6-501.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright at public auction to the highest bidder.
- Citation
-
Ark. Code Ann. §§ 26-37-101, -202.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest accrues at 10% per year, and an additional penalty is imposed at 10% per year.
- Citation
-
Ark. Code Ann. §§ 26-36-201, -37-302.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
A tax sale cannot take place until the taxes have been delinquent for at least one year, and redemption remains available for 10 days after the sale. Incompetent persons, minors, and certain military members during wartime have a longer period of time in which to redeem the property.
- Citation
-
Ark. Code Ann. §§ 26-37-101(b), -202(e), -305.
Who profits from home equity theft?
- Analysis
-
When home equity theft occurs, it is the government that takes the windfall.
- Citation
-
Ark. Code Ann. § 22-6-501.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Claims must be filed within two years, or else the funds escheat to the government.
- Citation
-
Ark. Code Ann. § 26-37-205(b)(3)(C).
What types of foreclosures are used in the state?
- Analysis
-
Administrative. The tax collector certifies delinquent properties to the state for sale.
- Citation
-
Ark. Code Ann. § 26-37-101.
What types of notice does the state require?
- Analysis
-
(1) Notice of delinquent properties, (2) notice to certification of delinquent properties to the state, and (3) notice describing the right of redemption.
- Citation
-
Ark. Code Ann. §§ 26-36-203, -102, -301.
California Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The state usually protects equity.
- Citation
-
Cal. Rev. & Tax §§ 4674, 4675.
Are there any exceptions to that rule?
- Analysis
-
Yes, the state allows the transfer of tax-indebted property to either a government entity for any public use a or public interest organization for low-income housing. The minimum price for a sale under this loophole is the amount of the tax debt plus interest and costs.
- Citation
-
Cal. Rev. & Tax §§ 3791, 3695.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright at auction to the highest bidder.
- Citation
-
Cal. Rev. & Tax § 3691.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
There is a redemption penalty of 1.5% per month until redemption. There is an additional delinquency penalty of 10%.
- Citation
-
Cal. Rev. & Tax §§ 4103, 2617.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least three years from the time of tax delinquency for non-residential property and at least five years for residential property.
- Citation
-
Cal. Rev. & Tax § 3691.
If equity is stolen, who profits?
- Analysis
-
The government or a non-profit organization, when property is taken for certain public purposes.
- Citation
-
Cal. Rev. & Tax §§ 3695.4, 3791.4, 4674, 4675.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner must make a claim for the proceeds within one year.
- Citation
-
Cal. Rev. & Tax § 4675.
What types of foreclosures are used in the state?
- Analysis
-
Automatic. After the redemption period has expired, the tax collector has the automatic right to sell tax-defaulted property.
- Citation
-
Cal. Rev. & Tax § 3691.
What types of notice does the state require?
- Analysis
-
(1) Notice of impending default, (2) notice of intended sale, (3) notice of right to claim excess proceeds, and (4) notice of application for tax deed.
- Citation
-
Cal. Rev. & Tax §§ 3351, 3361, 3701, 3704, 4676.
Colorado Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. In Colorado, tax liens are sold to the highest bidder. Any surplus generated from the sale is credited to the county’s general fund. If the property remains unredeemed three years after the tax lien sale, the lienholder may apply for a treasurer’s deed and obtain full title to the property.
- Citation
-
Colo. Rev. Stat. §§ 39-11-115(1), -120(1), -136.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens to the highest bidder.
- Citation
-
Colo. Rev. Stat. § 39-11-115.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes initially accrue interest at 1% per month. Once a tax lien is sold, the interest rate for redemption is added at nine percentage points above the federal discount rate. All interest payments prior to the tax lien sale are paid to the county treasurer; after the tax lien sale, interest is paid to the lienholder.
- Citation
-
Colo. Rev. Stat. §§ 39-10-104.5(3), 39-12-103(3), -108.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
There is a three-year minimum redemption period during which the lienholder may not apply for a treasurer’s deed. Once this period ends, redemption remains available until the issuance of the treasurer’s deed.
- Citation
-
Colo. Rev. Stat. §§ 39-11-120(1), 39-12-103(3).
Who profits from home equity theft?
- Analysis
-
The windfall is split between investors and the government, depending on the relationship between the tax lien purchase price and the market value of the home. The closer the purchase price is to the home value, the more equity the government will keep. When the purchase price is far less than the home value, more equity will be kept by the investor.
- Citation
-
Colo. Rev. Stat. § 39-11-115
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Colo. Rev. Stat. § 39-11-120.
What types of notice does the state require?
- Analysis
-
(1) Notice of delinquency, (2) three notices of all lands subject to tax lien sale, and (3) notice prior to issuing the deed.
- Citation
-
Colo. Rev. Stat. §§ 39-11-101, -102, -128.
Connecticut Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Property is sold at auction to the highest bidder, and the former owner may claim surplus proceeds.
- Citation
-
Conn. Gen. Stat. § 12-157(i).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Typically, the property is seized and sold outright at auction to the highest bidder, but municipalities are authorized to sell tax liens directly to investors, which grants investors the municipality’s power to collect the debt. Notably, the law suggests that before selling real estate, the government should first seize and sell goods to satisfy the debt.
If the real estate is not worth as much as the accrued tax debt on the property, then instead of an auction, the debt may be collected by foreclosing the property and taking title to it via a judicial foreclosure.
- Citation
-
Conn. Gen. Stat. §§ 12-132, -155, -157, -195-h, -183.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 1.5% per month. If the property is sold by warrant and sale procedures, additional interest on the purchase price at 18% per year is needed for redemption.
- Citation
-
Conn. Gen. Stat. §§ 12-145, -157(f).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
If the government utilizes warrant and sale procedures, redemption is generally available for six months after the sale. If judicial foreclosure proceedings are used, the redemption period is fixed at the discretion of the court.
- Citation
-
Conn. Gen. Stat. §§ 12-157(f), -181.
Who profits from home equity theft?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must apply to claim the surplus within 90 days. If not claimed, it will be treated as unclaimed property, which is taken by the state after one to three years.
- Citation
-
Conn. Gen. Stat. §§ 12-157(i), 3-62a.
What types of foreclosures are used in the state?
- Analysis
-
Both judicial procedures and administrative warrant and sale procedures are available.
- Citation
-
Conn. Gen. Stat. §§ 12-181, -135, -157.
What types of notice does the state require?
- Analysis
-
(1) Notice before the taxes become delinquent, (2) notice before a tax sale, and (3) notice describing the former owner’s right to claim the surplus.
- Citation
-
Conn. Gen. Stat. §§ 12-145, -157(a), -157(i)(1).
Delaware Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Property is sold, and the former owner is entitled to surplus proceeds.
- Citation
-
Del. Code Ann. tit. 9, §§ 8751, 8779.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright. Procedures vary by county.
- Citation
-
Del. Code Ann. tit. 9, §§ 8727, 8749, 8773.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
In New Castle County, a 6% penalty is imposed on delinquent taxes, and interest accrues to the principal at 1% per month. In Kent and Sussex Counties, interest accrues at 1.5% per month.
There are additional penalties that must be paid to redeem property after sale. If the property is sold under the monitions method or under the regular foreclosure method in New Castle County, the redemption amount is equal to the purchase price plus 15% and costs. If the property is sold under regular foreclosure proceedings in Kent or Sussex County, the redemption amount is equal to the purchase price plus 20% and costs.
- Citation
-
Del. Code Ann. tit. 9, §§ 8604, 8729, 8758, 8776.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
If the property was sold by monition or by the normal procedure in New Castle County, the redemption period is 60 days from the date of sale. If the property was sold by normal procedure in Kent or Sussex County, the redemption period is one year from the date of sale.
Note that in all cases, the redemption amount is not limited by the amount of the tax debt. Instead, it is fixed by the purchase price paid for the property at the tax sale.
- Citation
-
Del. Code Ann. tit. 9, §§ 8729, 8758, 8776.
If home equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
In the regular procedures for all counties, the government is obligated to return surplus proceeds directly to the former owner immediately. In the monitions procedure, the government must return the surplus on demand from the former owner.
- Citation
-
Del. Code Ann. tit. 9, §§ 8751, 8779; id. tit. 10, § 9560.
What types of foreclosures are used in the state?
- Analysis
-
New Castle County uses a judicial procedure. Kent and Sussex Counties use an administrative procedure. All counties may alternatively proceed using the monitions method, similar to a warrant of execution (i.e., a type of seizure and sale of property).
- Citation
-
Del. Code Ann. §§ 8741, 8771, 8721, 8722.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency; (2) in New Castle County, notice that collection proceedings will be instituted if the taxes are not paid; (3) in New Castle County, notice when it obtains a writ of attachment against the property; (4) in Kent and Sussex Counties, notice before commencing a tax sale; and (5) in the monitions method, a copy of the monition must be posted on the delinquent property.
- Citation
-
Del. Code Ann. §§ 8602, 8610, 8744, 8771, 8724.
Washington, D.C. Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. Washington, D.C. regularly sells tax liens to the highest bidder, who transfers all titles and claims to the purchaser. The government keeps any surplus, and investors take a windfall.
- Citation
-
D.C. Code Ann. §§ 47-1382(g), (h); but see Coleman through Bunn v. District of Columbia, 70 F. Supp. 3d 58, 64 (D.D.C. 2014) (denying motion to dismiss a takings claim challenging the taking of equity value of property).
Are there any exceptions to that rule?
- Analysis
-
Yes. For owner-occupied residential properties with five or fewer units, judicial foreclosure triggers a resale, the surplus proceeds of which are retained for the former owner. Moreover, residential properties with less than $2,500 in taxes owed are exempt from sale.
- Citation
-
D.C. Code §§ 47-1382.01, -1332(c)(2).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at auction to the highest bidder.
- Citation
-
D.C. Code § 47-1346.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 10% per year, compounded daily. After the tax lien is sold, interest accrues at 1.5% per month.
- Citation
-
D.C. Code §§ 47-4202(d)(2), -1334.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption may be made at any time before the issuance of a final judgment of foreclosure, which is available for at least 18 months after the lien sale. Foreclosure actions may not be instituted until six months have passed from the tax lien sale, and final judgments may not be issued until either one year has passed from the initial scheduling conference or four months have passed from service of process on the owner, whichever is later.
- Citation
-
D.C. Code §§ 47-1370, -1374(e).
If equity is stolen, who profits?
- Analysis
-
Equity is kept by investors and the government. The property will ordinarily sell for much less than the property’s value because investors must wait to foreclose and cannot collect interest on the surplus paid. Upon the foreclosure of unprotected property, any surplus funds paid for the tax lien are apparently kept by the government.
- Citation
-
D.C. Code § 47-1382(g).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
For qualifying properties, the law places an affirmative burden on the government to pay back the surplus proceeds.
- Citation
-
D.C. Code § 47-1382.01(d).
What types of foreclosures are used in the state?
- Analysis
-
Typically, judicial. However, where the tax lien is owned by the government, the mayor may utilize administrative foreclosure proceedings.
- Citation
-
D.C. Code §§ 47-1370, -847.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) notice of impending lien sale, (3) notice of tax sale held, and (4) notice of foreclosure petition filed.
- Citation
-
D.C. Code §§ 47-1342, -1341, -1353.01, -1371, -1374, -1375.
Florida Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Prior owners are entitled to surplus proceeds from a forced tax deed sale.
- Citation
-
Fla. Stat. § 197.582.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Tax lien certificates can be sold to private investors who pay the taxes, interest, costs, and other charges while demanding the lowest rate of interest for repayment.
- Citation
-
Fla. Stat. §§ 197.432, 197.482.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Florida has a bid-down system for the interest rate. The maximum rate is 18% per year from the date of delinquency until the certificate is sold. There is a mandatory minimum interest rate of 3% for delinquent taxes prior to the sale of the tax certificate.
For redemption, the mandatory minimum is 5% or the existing interest rate (whichever is greater) if the total interest earned on the lien was less than 5% of the certificate amount.
- Citation
-
Fla. Stat. §§ 197.172, 197.472(2), 197.432(6); In re Kroger Properties, Inc., 172 B.R. 351, 353 (Bankr. M.D. Fla. 1994).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years after April 1 of the year in which the tax lien certificate was issued, up until issuance, or full payment for the tax deed.
- Citation
-
Fla. Stat. §§ 197.502, 197.472, 197.552.
If equity theft occurs, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The clerk of court will distribute excess proceeds to the former owner if no lienholder claims for the funds are made within 120 days.
- Citation
-
Fla. Stat. § 197.582.
What types of foreclosures are used in the state?
- Analysis
-
Administrative foreclosure of tax certificate with a forced tax deed sale managed by the clerk of court.
- Citation
-
Fla. Stat. §§ 197.502, 197.512.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of tax lien, (3) notice of application for tax deed, (4) notice of intended sale of tax deed, (5) notice of surplus funds from tax deed sale, and (6) additional notices as deemed necessary by the tax collector.
- Citation
-
Fla. Stat. §§ 197.343, 197.402, 197.512, 197.522, 197.582(2)(a), 197.343(3).
Georgia Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Property is sold to the highest bidder, and the former owner is entitled to claim the surplus proceeds.
- Citation
-
Ga. Code Ann. §§ 48-4-5, -81(f).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright at auction to the highest bidder.
- Citation
-
Ga. Code Ann. §§ 48-4-1, -81.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest accrues on delinquent taxes at a rate equal to the prime rate plus 3% monthly. Redemption carries an additional penalty of 20% for the first year after sale, and 10% for each subsequent year.
- Citation
-
Ga. Code Ann. §§ 48-2-40, 48-4-42.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Under the administrative foreclosure procedure, the right of redemption is guaranteed for 12 months after the sale. Beyond that period, redemption remains available until the tax sale purchaser gives notice of foreclosure. Under the judicial foreclosure procedure, redemption expires 60 days after the foreclosure sale is held.
- Citation
-
Ga. Code Ann. §§ 48-4-40,-81(c).
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
In the administrative foreclosure process, an application for the surplus may be made within five years from the date of sale and may even be made afterward with more burdensome procedures. In the judicial foreclosure process, the surplus is distributed by the court as part of the judicial proceeding.
- Citation
-
Ga. Code Ann. §§ 48-4-5, -81(f).
What types of foreclosures are used in the state?
- Analysis
-
The primary foreclosure method is by administrative levy and execution. As an alternative, a judicial foreclosure method is also available.
- Citation
-
Ga. Code Ann. §§ 48-3-3, 48-4-75.
What types of notice does the state require?
- Analysis
-
(1) Notice before taxes are due, (2) notice before the tax sale is held, (3) notice of excess funds from the tax sale, (4) notice of foreclosure after the expiration of the one-year redemption period from sale, and (5) notice of filing the foreclosure petition.
- Citation
-
Ga. Code Ann. §§ 48-3-3, 48-4-1, 48-4-5(a), 48-4-45, 48-4-78(f).
Hawaii Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The Hawaii Constitution reserves real property tax authority to the counties, except for Kalawao County, which is entirely publicly owned. Each of the other four counties has procedures in place to protect home equity theft in cases of tax foreclosure.
- Citation
-
Haw. Const. art. VIII, § 3.
Are there any exceptions to that rule?
- Analysis
-
No. Note, however, that although real property taxation is reserved for the counties, delinquent Hawaii state taxes may be converted into real property tax liens to be enforced by the state. Nevertheless, this procedure is protective of the taxpayer’s equity interests in the encumbered property.
- Citation
-
Haw. Rev. Stat. Ann. §§ 231-33(b), 231-70.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
All counties—sell property outright at public auction to the highest bidder.
- Citation
-
Honolulu Rev. Ord. § 8-5.2; Haw. County Code § 19-38(b); Maui Code Ord. § 3.48.250; Kauai County Code § 5A-5.2.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Hawaii, Kauai, and Maui Counties—delinquency triggers a penalty of 10%. The delinquency and penalty together accrue interest at 1% per month. After a tax sale, redemption requires payment of the purchase price plus 12% annual interest.
Honolulu County—delinquency triggers a penalty of 2% per month, up to a maximum of 10%. The delinquency, together with the penalty, accrues interest at 1% per month. After a tax sale, redemption requires payment of the purchase price plus 12% annual interest.
- Citation
-
Haw. County Code, §§ 19-32, 19-42; Kauai County Code §§ 5A-3.3, 5A-5.6; Maui Code Ord. §§ 3.48.220, 3.48.270; Honolulu Rev. Ord. §§ 8-3.3, 8-5.6.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Hawaii County—redemption may be made up to one year after the date of sale. Property cannot be sold until it has been delinquent for two years.
Honolulu and Maui Counties—redemption may be made up to one year from the date of sale, or if the purchaser fails to record a tax deed within 60 days of the sale, then redemption can be made up to one year from the date of the recording. Property cannot be sold until it has been delinquent for at least three years.
Kauai County—redemption can be made up to one year after the date of sale. Property cannot be sold until it has been delinquent for at least three years.
- Citation
-
Haw. County Code §§ 19-42, 19-38(a); Honolulu Rev. Ord. §§ 8-5.6, 8-5.2; Maui Code Ord. §§ 3.48.270, 3.48.250; Kauai County Code §§ 5A-5.6, 5A-5.2.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Hawaii County—the former owner has two years from the date of sale to file a claim for the surplus.
Honolulu, Kauai, and Maui Counties—the government may, but is not required to, pay the surplus proceeds to the persons whom the director of budget and financial services believes are entitled thereto. Otherwise, the former owner may file a claim for the surplus in court. The real property tax ordinances are not explicit about whether or when the time to do so may expire.
- Citation
-
Haw. County Code § 19-45; Honolulu Rev. Ord. § 8-5.9; Kauai County Code § 5A-5.9; Maui Code Ord. § 3.48.285.
What types of foreclosures are used in the state?
- Analysis
-
All counties—foreclosure may occur through administrative or judicial proceedings. Note that judicial foreclosures proceed by the state laws applicable to mortgage foreclosures and are not described by the foregoing analysis.
- Citation
-
Honolulu Rev. Ord. §§ 8-5.2, 8-5.1(g), 8-5.11; Haw. County. Code §§ 19-37, 19-38; Maui Code Ord. §§ 3.48.245, 3.48.250; Kauai County Code §§ 5A-5.1, 5A-5.2; see generally Haw. Rev. Stat. Ann. div. 4, tit. 34, ch. 634; id. tit. 36, ch. 667.
What types of notice does the state require?
- Analysis
-
All counties—(1) notice of impending sale, and (2) notice of action to dispose of surplus.
- Citation
-
Honolulu Rev. Ord. §§ 8-5.2, 8-5.9; Haw. County. Code §§ 19-40, 19-45; Maui Code Ord. §§ 3.48.250, 3.48.285; Kauai County Code §§ 5A-5.2, 5A-5.9.
Idaho Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
March 2024 update: Idaho passed H444, which closes a loophole that allowed governments to foreclose on properties and keep them for public use without paying compensation. Now, all tax foreclosed properties will be sold and surplus equity returned to property owners.
- Citation
-
N/A
Are there any exceptions to that rule?
- Analysis
-
Yes. A county may choose to gift the land to any federal or Idaho state entity, in which case no sale takes place, and no surplus proceeds are available to protect the owner’s equity.
- Citation
-
Idaho Code § 31-808(9).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The county sells property outright at public auction to the highest bidder.
- Citation
-
Idaho Code § 31-808(1).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest accrues on delinquent taxes at 1% per month, and an additional one-time 2% penalty is charged on the principal delinquency.
- Citation
-
Idaho Code §§ 63-903(3), (4), 63-1001, 63-201(12).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available until the government sells or otherwise conveys the property, or until 14 months after the issuance of a tax deed, whichever happens first. Keep in mind that a tax deed cannot issue—and the government cannot sell the property—until the taxes have been delinquent for three years.
- Citation
-
Idaho Code §§ 63-1007, -1005(1).
If home equity is stolen, who profits?
- Analysis
-
The government.
- Citation
-
Idaho Code § 31-808(9).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The law places an affirmative obligation on the government to return the funds to the former owner.
- Citation
-
Idaho Code § 31-808(2)(c).
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Idaho Code § 63-1006.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) notice of pending issuance of tax deed, and (3) notice of sale of tax-deeded property.
- Citation
-
Idaho Code §§ 63-902, 63-1005, 31-808(1).
Illinois Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Generally, no. The holder of a tax certificate may petition for a tax deed, which will be granted after the redemption period expires. The tax deed grants the holder a marketable title with nothing required to be returned to the property owner.
- Citation
-
35 Ill. Comp. Stat. 200/22-30, -40, -55.
Are there any exceptions to that rule?
- Analysis
-
No. However, IL maintains an indemnity fund through which some former owners are allowed to apply for payment for compensation of loss or damage to any property caused through issuance of a tax deed. This compensation is limited to property owners who resided on a property containing four units or fewer (maximum of $99,000) or who sustained the loss through no fault or negligence of their own.
- Citation
-
35 Ill. Comp. Stat. 200/21-305.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells liens to private investors at a delinquent tax sale.
- Citation
-
35 Ill. Comp. Stat. 200/22-30.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
The interest on delinquent taxes is 1.5% per month. There is an additional redemption penalty that increases from the date of tax sale in the following way: 0–2 months at 3%; 2–6 months at 12%; 6–12 months at 24%; 12–18 months at 36%; 18–24 months at 48%; 24+ months at 48%; plus an additional 6% for every year after.
There is a bid-down process for an additional penalty applied to the debt. The purchaser who bids the lowest penalty rate acquires the tax lien, and the penalty may not exceed 9%.
- Citation
-
35 Ill. Comp. Stat. 200/21-15, -75(b), -215.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
The owner has two and a half years from the date of the lien sale for properties with six or fewer units and two years for properties with greater than six units. This can be extended by the certificate holder to a maximum of three years from the date of the tax sale.
- Citation
-
35 Ill. Comp. Stat. 200/21-350(b), -385.
If equity is stolen, who profits?
- Analysis
-
The certificate holder receives a marketable title after foreclosure of the lien.
- Citation
-
35 Ill. Comp. Stat. 200/22-55.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Citation: 35 Ill. Comp. Stat. 200/21-175.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of application for judgment and sale, and (3) notice of intent to acquire tax deed.
- Citation
-
35 Ill. Comp. Stat. Ann. 200/21-110, -115, -135, 200/20-5, 200/22-5.
Indiana Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes.
- Citation
-
Ind. Code § 6-1.1-24-7(c).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at public auctions to the highest bidder.
- Citation
-
Ind. Code § 6-1.1-24-5.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
A 5% penalty is added when taxes become delinquent. If not paid within 30 days of delinquency, the penalty is increased to 10%. Within 120 days of the tax lien sale, redemption carries an additional penalty of 10% of the total debt plus 5% annual interest on the surplus generated at sale. After 120 days, the 10% penalty is increased to 15%.
- Citation
-
Ind. Code §§ 6-1.1-37-10(a)(1), (2), 6-1.1-25-2(a)(1), (g), 6-1.1-25-2(b)−(d).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
The redemption period is typically one year from the date of the tax lien sale, although in some cases, it can be as short as 120 days from this date.
- Citation
-
Ind. Code §§ 6-1.1-25-4(a), (b), (c).
If equity is stolen, who profits?
- Analysis
-
Non-governmental entities.
- Citation
-
Ind. Code §§ 6-1.1-24-6.7, -6.9.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must file a claim for the surplus proceeds within three years from the date of the sale.
- Citation
-
Ind. Code §§ 6-1.1-24-7(c), (e)(2).
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Ind. Code § 6-1.1-25-4.6.
What types of notice does the state require?
- Analysis
-
(1) Notice before the tax sale, (2) notice of redemption rights, and (3) notice of petition for the tax deed.
- Citation
-
Ind. Code §§ 6-1.1-24-3, -4, 6-1.1-25-4.5(a)(3), 6-1.1-25-4.6(a); see also In re Wiper Corporation, 81. N.E.3d 1131, 1134 (Ind. Ct. App. 2017).
Iowa Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Tax liens in Iowa are sold to the bidder who offers to take the smallest portion of the delinquent property. In theory, this procedure preserves equity by ensuring that the debt is satisfied by taking the least amount of property possible.
- Citation
-
Iowa Code Ann. § 446.16
Are there any exceptions to that rule?
- Analysis
-
No, but because bid-down systems like this are arcane, the outcome is often as bad as a home equity theft state.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at a price fixed by the amount of debt, and bidders compete by offering to take a lien covering the smallest portion of the property. For example, a winning bidder might purchase a 5% interest in the whole property in exchange for paying the tax debt.
- Citation
-
Iowa Code § 446.16.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest accrues on delinquent taxes at 1.5% per month. After the tax lien sale, this figure is raised to 2% per month.
- Citation
-
Iowa Code §§ 445.39, 447.1.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years, but it may be longer. The lienholder must affirmatively terminate the redemption period by sending a notice to the owner, which cannot be done until one year and nine months have passed since the date of the sale. The redemption period expires 90 days after this notice is sent.
- Citation
-
Iowa Code § 447.9.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A, since equity in Iowa tax foreclosures is protected by smallest-portion bid-down procedures, not by surplus sale proceeds.
- Citation
-
Iowa Code § 446.16.
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Iowa Code § 448.1.
What types of notice does the state require?
- Analysis
-
(1) Notice before the tax sale, (2) notice of tax sale held, and (3) notice of expiration of redemption.
- Citation
-
Iowa Code §§ 446.9, 446.2, 447.9.
Kansas Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The government sells property to the highest bidder and must pay the former owner the surplus proceeds.
- Citation
-
Kan. Stat. Ann. § 79-2803.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright at public auction to the highest bidder. It also holds an initial tax lien sale, but this is a legal fiction; in effect, the county merely gives itself the tax lien.
- Citation
-
Kan. Stat. Ann. §§ 79-2804, -2306.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
On delinquencies greater than $10,000, interest accrues at 15% per year. For smaller delinquencies, interest is calculated at the federal underpayment rate set forth in 26 U.S.C. 6621(a)(2), plus five percentage points.
- Citation
-
Kan. Stat. Ann. §§ 79-2004(a), -2968; see 26 U.S.C. 6621(a)(2).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption may be made at any point prior to the day of the foreclosure sale. Foreclosure proceedings cannot be instituted until two years have passed from the date of the initial tax lien sale—or three years in the case of homestead property.
- Citation
-
Kan. Stat. Ann. §§ 79-2803, -2401a.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The foreclosure court must order that the funds be paid to the former owner.
- Citation
-
Kan. Stat. Ann. § 79-2803.
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Kan. Stat. Ann. § 79-2801.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) notice of impending tax sale, and (3) notice of foreclosure petition filed.
- Citation
-
Kan. Stat. Ann. §§ 79-2001, -2303, -2801.
Kentucky Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes.
- Citation
-
Ky. Rev. Stat. Ann. §§ 91.517, 134.546(4), 426.500.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
It depends on the jurisdiction. Counties sell tax liens to the highest bidder. First-class cities (a particular type of governmental structure under Kentucky law that currently only refers to Louisville) use a tax deed sale procedure. All other cities have the option of using either procedure.
- Citation
-
Ky. Rev. Stat. Ann. §§ 134.128, 91.488, .4885, 91A.070.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
For counties and cities adopting county procedures, interest accrues at 12% per year, and redemption carries an additional 10% penalty plus a 10% sheriff’s add-on. For first-class cities, delinquent taxes accrue interest at 0.5% per month, and redemption carries an additional penalty at 18% of the purchase price of the tax deed. All other cities may set their own interest rates and penalties.
- Citation
-
Ky. Rev. Stat. Ann. §§ 134.125, .122, 91.430, .511, 91A.070.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
For counties and all cities not of the first class, the property can be redeemed at any time before it is judicially foreclosed. If the foreclosure sale of the property does not generate two-thirds of the property’s appraised value, the redemption period will be extended by six months. For first-class cities, redemption is available at any time before the tax deed sale. If the tax deed sale fails to generate funds equivalent to the property’s assessed value, redemption is extended by 60 days.
- Citation
-
Ky. Rev. Stat. Ann. §§ 134.127, 134.546, 91A.070, 426.530, 91.511.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
For counties and all cities not of the first class, the surplus proceeds are paid out of court after the foreclosure sale. For first-class cities, former owners have two years to apply to claim the surplus.
- Citation
-
Ky. Rev. Stat. Ann. §§ 426.500, 91.517.
What types of foreclosures are used in the state?
- Analysis
-
All jurisdictions use judicial foreclosure proceedings. However, in counties and cities not of the first class, where the tax lien is held by a government entity, an administrative procedure may be used.
- Citation
-
Ky. Rev. Stat. Ann. §§ 91.487, 134.546(2), (3).
What types of notice does the state require?
- Analysis
-
In counties and cities not of the first class: (1) notice of establishment of certificate of delinquency, (2) notice of impending tax sale, (3) notice of tax sale held, and (4) notice of intent to file foreclosure petition.
In first-class cities: (1) notice of foreclosure petition filed.
- Citation
-
Ky. Rev. Stat. Ann. §§ 134.504, 134.549, 134.490, 91.4884.
Louisiana Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Possibly. Tax liens in Louisiana are sold to the bidder who offers to take the smallest portion of the delinquent property. In theory, this procedure preserves equity by ensuring that the debt is satisfied by taking the least amount of property possible. However, because systems like this can result in winning bids that exceed the amount of the tax debt, interest, and fees, the outcome is often as bad as a home equity theft state. For example, an investor who wins a tax lien by bidding to take 50% of a $100,000 property to satisfy a $10,000 tax debt would take a $40,000 windfall from the owner’s equity.
- Citation
-
La. Stat. Ann. § 47:2153(5).
Are there any exceptions to that rule?
- Analysis
-
Yes. If no qualifying bids are made at the tax lien sale, the property is adjudicated to the government. The government may then sell the property and keep all proceeds. Moreover, because bid-down systems like this are arcane, the outcome is often as bad as a home equity theft state.
- Citation
-
La. Stat. Ann. § 47:2211.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at a price fixed by the amount of debt, and bidders compete by offering to take a lien covering the smallest portion of the property. For example, a winning bidder might purchase a lien by offering to pay the debt in exchange for 1% ownership of the whole property.
- Citation
-
La. Stat. Ann. § 47:2153(5).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 1% per month. After the tax lien sale, redemption carries an additional 5% penalty.
- Citation
-
La. Stat. Ann. §§ 47:2127, 47:2243.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available for three years after the tax lien sale. If property is adjudicated to the government, redemption is available until the property is disposed of otherwise.
- Citation
-
La. Const. art. 7, § 25(B); La. Stat. Ann. § 47:2246.
If home equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Automatic.
- Citation
-
La. Stat. Ann. § 47:2241.
What types of notice does the state require?
- Analysis
-
(1) Notice of delinquency and impending tax sale, (2) notice of tax sale held, and (3) notice of expiration of redemption.
- Citation
-
La. Stat. Ann. §§ 47:2153, 47:2156.
Maine Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
July 2023 Update: Yes. After obtaining title to property through tax foreclosure, municipalities must disburse surplus proceeds from the disposition of that property to the former owner. If the property is not disposed of (i.e., not sold) within 180 days after foreclosure, the municipality must still refund the equity based on the fair market value of the property at the time of foreclosure, determined by an independent appraisal.
- Citation
-
Me. Stat. tit. 36, § 949A(1).
Are there any exceptions to that rule?
- Analysis
-
July 2023 Update: Yes. The former owner has only 90 days to either claim the funds or dispute the amount and enter negotiation or arbitration proceedings. After this 90-day period, the government may convert the funds to its own use.
- Citation
-
Me. Stat. tit. 36, § 949-A(2)
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Typically, the government retains the tax lien and sells the property outright after foreclosure. However, post-foreclosure sales are not required, and except in the case of homestead property owned by senior citizens, they are not subject to any special rules.
A variety of alternative procedures are also available. These include civil actions for a writ of attachment and distraint and sale of personal property, both of which are somewhat more protective of equity than the typical automatic tax lien procedure. The government may also sell the property outright at a tax auction sale. While this older method does not protect equity, it does provide more generous redemption provisions; however, because it is less profitable for the government and riskier for investors, it is rarely used.
- Citation
-
Me. Stat. tit. 36, §§ 942, 943, 941, 991, 992, 1071; see Martel v. Bearce, 311 A.2d 540, 547 n.10 (Me. 1973).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Municipalities are authorized to adopt their own interest rates, with a maximum set at the prime interest rate (as published in the Wall Street Journal on the first business day of the calendar year) plus three percentage points and rounded up to the nearest whole.
- Citation
- Me. Stat. tit. 36, § 505(4).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption of a tax lien may be made within 18 months of the creation of the lien, after which it is automatically foreclosed.
- Citation
-
Me. Stat. tit. 36, § 943.
If equity is stolen, who profits?
- Analysis
-
The municipal government.
- Citation
-
Me. Stat. tit. 36, §§ 943, 949, 943-C.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
July 2023 Update: The former owner has 90 days to claim the funds after receiving notice of their availability. The owner may choose to negotiate or enter binding arbitration proceedings if there is a dispute over the amount. If the funds are unclaimed after 90 days, the government may convert them to its own use.
- Citation
-
Me. Stat. tit. 36, § 949A(3).
What types of foreclosures are used in the state?
- Analysis
-
Automatic.
- Citation
-
Me. Stat. tit. 36, § 943.
What types of notice does the state require?
- Analysis
-
(1) Notice prior to the creation of a tax lien, and (2) notice prior to the expiration of the redemption period.
- Citation
-
Me. Stat. tit. 36, §§ 942, 943.
Maryland Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes.
- Citation
-
Md. Code Ann., Tax-Prop. § 14-818(a)(4).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at auction to the highest bidder. If the properties are blighted or abandoned, they can be sold outright.
- Citation
-
Md. Code Ann., Tax-Prop. §§ 14-804(a)(1), -874(b).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at a base rate of 0.66% per month, though actual rates vary by county and may be as high as 1.5%. After a tax lien sale, the interest charged for redemption also varies by county, ranging from 6% to 14% per annum.
- Citation
-
Md. Code Ann., Tax-Prop. §§ 14-603, -820.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available until the entry of a judicial order of foreclosure. Typically, the minimum redemption period is six months from the tax lien sale. In Baltimore, residential properties may be redeemed at least nine months after sale.
- Citation
-
Md. Code Ann., Tax-Prop. § 14-833.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The law places an affirmative duty on the tax collector to refund the surplus proceeds to the former owner.
- Citation
-
Md. Code Ann., Tax-Prop. § 14-818.
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Md. Code Ann., Tax-Prop. § 14-833.
What types of notice does the state require?
- Analysis
-
(1) Notice of impending tax sale, (2) notice of tax sale held, (3) two notices of intent to foreclose prior to filing a foreclosure petition, (4) notice of foreclosure petition filed, (5) notice as required in judicial actions by the Maryland Rules of Procedure, and (6) notice of foreclosure and intent to obtain possession.
- Citation
-
Md. Code Ann., Tax-Prop. §§ 14-833, -836.
Massachusetts Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. The foreclosing lienholder retains the entire value of the home.
- Citation
-
Mass. Gen. Laws ch. 60, § 64.
Are there any exceptions to that rule?
- Analysis
-
Yes. Some municipalities choose to wait a very long time before foreclosing the property. If the lienholder waits until the debt is as large as the value of the property, then that protects equity.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Municipalities may sell tax liens to private investors or foreclose themselves. The lienholder receives absolute title following foreclosure, so a sale need not ever take place.
- Citation
-
Mass. Gen. Laws ch. 60, § 64.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
A tax lien generates a 16% annual compounding interest to be collected by the lienholder.
- Citation
-
Mass. Gen. Laws ch. 60, § 62.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least six months after tax taking is initiated. Until petition for foreclosure is filed.
- Citation
-
Mass. Gen. Laws ch. 60, § 62.
If equity is stolen, who profits?
- Analysis
-
The tax lienholder.
- Citation
-
Mass. Gen. Laws ch. 60, § 64.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial (Land Court).
- Citation
-
Mass. Gen. Laws ch. 60, § 65.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax taking, and (2) notice of petition for foreclosure.
- Citation
-
Mass. Gen. Laws ch. 60, §§ 53, 66.
Michigan Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes.
- Citation
-
Mich. Comp. Laws § 211.78g(2).
Are there any exceptions to that rule?
- Analysis
-
No. However, the claim procedure is complicated, and the window for claiming proceeds is short, so owners could easily miss out on protections for equity.
- Citation
-
Mich. Comp. Laws § 211.78t.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Governments in Michigan sell tax-delinquent property outright.
- Citation
-
Mich. Comp. Laws §§ 211.78a(1), 211.78g(1).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 12% per annum. A 4% penalty is also imposed. After March 1 of the year following the tax year, redemption requires additional interest at 0.5% of the principal debt per month, calculated from the date of delinquency.
- Citation
-
Mich. Comp. Laws §§ 211.78a(3), 211.78g(3)(b).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available until March 31 of the year immediately after the entry of a judgment of foreclosure. This is not much time, as foreclosure hearings must be scheduled in February. In effect, redemption is available within 13 months from the date the government took a tax lien over the property.
- Citation
-
Mich. Comp. Laws §§ 211.78g(3), 211.78h(5); see § 211.78a.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Application for the surplus proceeds from an auction of the property must be made by July 1 immediately following the foreclosure. Former owners must also file a motion in court seeking the surplus within a short statutory window. The procedure required is complex, so a lawyer is usually required to navigate it successfully.
- Citation
-
Mich. Comp. Laws § 211.78t.
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Mich. Comp. Laws § 211.78h.
What types of notice does the state require?
- Analysis
-
(1) First notice of tax delinquency, (2) second notice of tax delinquency and possibility of foreclosure, (3) notice of tax lien imposed, and (4) notice of show-cause and foreclosure hearings.
- Citation
-
Mich. Comp. Laws §§ 211.78b, 211.78c, 211.78f, 211.78i, 211.78k.
Minnesota Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. In Minnesota, tax-delinquent lands are transferred to the state to be held in trust for the county in which they sit. At the expiration of redemption, the county board of supervisors votes on what to do with the property. There are several options available, but none protects the former owner’s equity.
- Citation
-
Minn. Stat. §§ 280.001, 280.01, 280.43, 281.25, 282.01, 282.05, 282.08.
Are there any exceptions to that rule?
- Analysis
- Yes. After the expiration of the redemption period but before the property is otherwise sold or leased, the former owner may apply to the county board of supervisors to repurchase the property for the amount of delinquent taxes plus penalties, interest, and costs. If the property is not a homestead, the period for repurchase is limited to six months after the expiration of redemption. The county board is not obligated to grant an application for repurchase, however, and may only do so after adopting a resolution that permits repurchase to avoid undue hardship or injustice to the former owner. Nevertheless, its discretion is limited, and it may not deny the application on an arbitrary or capricious basis.
- Citation
-
Minn. Stat. § 282.241(1); see Radke v. St. Louis Cnty. Bd., 558 N.W.2d 282, 284−85 (Minn. Ct. App. 1997).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Technically, properties are purchased by the state at an initial tax sale and are held in trust for the county, subject to the right of redemption. In effect, this is essentially the automatic transfer of title from the county to the state. Upon the expiration of redemption, the county votes on whether to sell the land or keep it for public use. If designated for sale, the county must conduct an appraisal and sell the property at public sale to the highest bidder, with the minimum bid equal to the appraised value.
- Citation
-
Minn. Stat. §§ 280.01, 281.25, 282.01(4), (7)
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest on delinquent taxes is equal to the average prime interest rate charged by banks between April and September of each year but cannot be lower than 10% or higher than 14%.
- Citation
-
Minn. Stat. §§ 279.03(1)(a), 270C.40(5).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Homeowners may redeem property within three years from the date it was transferred to the state. No earlier than 120 days before the expiration of this period, the government must serve notice to the owner of the impending expiration. If this notice is served later than 60 days before the expiration of three years, then redemption remains available until 60 days after the date that the notice was served.
- Citation
-
Minn. Stat. §§ 281.17, 281.23.
If equity is stolen, who profits?
- Analysis
-
After foreclosure, the county votes on whether to keep the property for public use or sell it for its appraised value. In either case, the government retains equity.
- Citation
-
Minn. Stat. §§ 282.01, 282.05, 282.08.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Minn. Stat. § 281.23(9).
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, and (2) notice of the expiration of redemption.
- Citation
-
Minn. Stat. §§ 279.05, 279.09, 279.091, 281.23(1).
Mississippi Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Former owners may claim surplus proceeds from a tax lien sale.
- Citation
-
Miss. Code Ann. § 27-41-77.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at auction to the highest bidder.
- Citation
-
Miss. Code Ann. § 27-41-59.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest accrues on delinquent taxes at 0.5% per month. After a tax lien sale, redemption requires payment of interest at 1.5% per month and a 5% penalty.
- Citation
-
Miss. Code Ann. §§ 27-41-9, 27-45-3.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available for two years after the date of the tax lien sale.
- Citation
-
Miss. Code Ann. § 27-45-3.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must make a demand for the surplus within two years from the expiration of the redemption period; in other words, they must claim them within four years of the tax lien sale.
- Citation
-
Miss. Code Ann. § 27-41-77.
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Miss. Code Ann. § 27-45-23.
What types of notice does the state require?
- Analysis
-
(1) Notice of impending tax sale, (2) first notice of expiration of redemption, and (3) second notice of expiration of redemption.
- Citation
-
Miss. Code Ann. §§ 27-41-49, 27-43-1, 27-43-3.
Missouri Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Owners may claim surplus proceeds from a tax lien sale.
- Citation
-
Mo. Rev. Stat. §§ 140.230(2), 141.580(3), (4).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at public auction to the highest bidder.
- Citation
-
Mo. Rev. Stat. §§ 140.190, 140.290, 140.230.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest (called a penalty) at 2% per month until the tax lien sale is held. After the sale, redemption carries a penalty of 18% for each year’s delinquency.
- Citation
-
Mo. Rev. Stat. § 140.100.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption can be made at any time before a tax deed is issued. Typically, the lienholder must wait at least one year from the date of the tax lien sale to apply for a tax deed. However, if there are no qualifying bidders for the tax lien at two successive tax sales, the lienholder may apply for a tax deed after 90 days.
- Citation
-
Mo. Rev. Stat. §§ 140.340, 140.250, 140.405.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The period for claiming the surplus is the sooner of three years from the date of the tax lien sale or 90 days from the expiration of redemption.
- Citation
-
Mo. Rev. Stat. § 140.230(2).
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
Mo. Rev. Stat. § 140.420.
What types of notice does the state require?
- Analysis
-
(1) Notice of impending delinquency, (2) first notice of impending tax lien sale, (3) second notice of impending tax lien sale for properties assessed above $1,000, and (4) notice of expiration of redemption.
- Citation
-
Mo. Rev. Stat. §§ 52.230, 140.150, 140.170, 140.405.
Montana Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Surplus of sale returned if the foreclosed property is residential.
- Citation
-
Mont. Code Ann. § 15-18-221.
Are there any exceptions to that rule?
- Analysis
-
Yes. There is a loophole whereby surplus proceeds are not returned to the original owner when the foreclosed property is non-residential.
- Citation
-
Mont. Code Ann. §§ 15-18-220, -16-102(6).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Yes, the government may assign a tax lien to a private third party. If there is no redemption, the lienholder can apply for a tax deed, which will then be sold at auction.
- Citation
-
Mont. Code Ann. §§ 15-18-219, -211.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
There is a 2% penalty on delinquent taxes. Five-sixths of 1% per month compounding interest from the time of delinquency until past due taxes are paid.
- Citation
-
Mont. Code Ann. § 15-16-102.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Three years after the attachment of the lien. Two years if the property is subdivided as a residential or commercial lot upon which there is no habitable dwelling or commercial structure.
- Citation
-
Mont. Code Ann. § 15-18-111.
If equity is stolen, who profits?
- Analysis
-
In cases of properties without dwellings, the lienholder will profit.
- Citation
-
Mont. Code Ann. §§ 15-18-221, -214, -219.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The county treasurer has the obligation to return excess proceeds to the former owner within 30 days of receiving payment for the tax deed.
- Citation
-
Mont. Code Ann. § 15-18-221.
What types of foreclosures are used in the state?
- Analysis
-
Automatic and administrative. For residential property, the county treasurer will organize a tax deed auction. For non-residential property, the country treasure must issue a tax deed upon submission of an application by the lienholder.
- Citation
-
Mont. Code Ann. §§ 15-18-219, -211.
What types of notice does the state require?
- Analysis
-
(1) Notice of pending tax lien, (2) notice of intent to foreclose, (3) notice of application for tax deed, and (4) notice of deed auction.
- Citation
-
Mont. Code Ann. §§ 15-17-122, 15-16-101, 15-18-212, -219, -220(1).
Nebraska Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
June 2023 update: Thanks to PLF’s legislative policy efforts, Nebraska law now protects equity in tax foreclosures. Where a property’s expected equity is more than $25,000, all foreclosures must go through a judicial proceeding and sale, with the surplus proceeds going to the former owner. Where the expected equity is less than $25,000, and the lienholder obtains a treasurer’s deed to the property, the lienholder must pay the former owner for any equity.
- Citation
-
Neb. Stat. 77-1838; 77-1902.
Are there any exceptions to that rule?
- Analysis
-
Yes. Nebraska also has a judicial foreclosure system that is used when no one purchases a tax lien. In that case, the county would proceed with a judicial foreclosure and sale, with surplus proceeds treated as if they were in a mortgage foreclosure proceeding (i.e., retained for the former owner). Even private lienholders may choose to utilize this judicial proceeding rather than the administrative tax deed procedure, although they are unlikely to do so in practice.
- Citation
-
Neb. Rev. Stat. §§ 77-1901, -1902, -1916; 25-2146.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens for a price fixed at the amount of the debt using round-robin bidding procedures. In cases where the tax lien is unpurchased, the government proceeds with a judicial foreclosure and sale of the property in the manner of a mortgage foreclosure sale.
- Citation
-
Neb. Rev. Stat. §§ 77-1807(2)(c), (e), -1901, -1911, -1916.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest on delinquent taxes accrues at 14% annually. Before a tax lien sale, this interest is collected by the taxing district for distribution to government agencies in the same proportion as the principal taxes. After an investor pays this interest to the government to purchase the lien, the investor then collects interest from the taxpayer.
- Citation
-
Neb. Rev. Stat. §§ 77-1718, 45-104.01.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available at any point until the lienholder files an application for a tax deed with the county treasurer. Such an application cannot be made until three years have passed since the date of the tax lien sale.
- Citation
-
Neb. Rev. Stat. §§ 77-1824, -1837(1).
If equity is stolen, who profits?
- Analysis
-
Private investors keep the equity. There are no post-foreclosure sale requirements.
- Citation
-
Neb. Rev. Stat. § 77-1838.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
June 2023 update: The previous owner does not bear the burden of claiming proceeds. Instead, equity is distributed either by judicial proceeding or by direct reimbursement from the lienholder.
- Citation
-
Neb. Stat. 77-1838; 77-1902.
What types of foreclosures are used in the state?
- Analysis
-
It depends on the property’s expected equity (calculated based on its assessed value for taxation). If it is less than $25,000, the lienholder may apply for administrative foreclosure. If it is more than $25,000, judicial foreclosure must be used.
- Citation
-
Neb. Stat. 77-1838.
What types of notice does the state require?
- Analysis
-
(1) Notice for all delinquent properties subject to sale, and (2) notice before applying for a treasurer’s deed.
- Citation
-
Neb. Rev. Stat. §§ 77-1802, -1803, -1831, -1832.
Nevada Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Excess proceeds are ordinarily returned to the former owner.
- Citation
-
Nev. Rev. Stat. §§ 361.610(4), (6).
Are there any exceptions to that rule?
- Analysis
-
Yes, there are a few loopholes. School districts or local governments may acquire tax-deeded properties outside of sale by paying the amount due or without paying taxes for certain uses. An Indian tribe may acquire tax-delinquent property on Indian land without any payment.
Even where excess proceeds are returned to the former owner, the county treasurer will take the first $1,300 of the proceeds for the general fund. This is not a penalty.
- Citation
-
Nev. Rev. Stat. §§ 361.603(4), (5), 361.606, 361.595(4)(b), 361.567(6), 361.610(3), 361.604(3).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government receives a tax lien certificate after delinquency. The tax lien is automatically transformed into a tax deed, which the county treasurer will hold until the property is sold or disposed of otherwise.
- Citation
-
Nev. Rev. Stat. §§ 361.570, 361.585.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
An interest rate of 10% is applied to the debt. The applicable penalty is broken down by the number of installments to be paid: one installment at 4%; two installments at 5%; three installments at 6%; the full year at 7%. The penalty for tax debts related to mobile homes is 10% if the debt is not paid within 30 days of delinquency.
- Citation
-
Nev. Rev. Stat. §§ 361.483(7), 361.5644(1).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years. One year for an abandoned property. Any time up to three business days before the day of sale.
- Citation
-
Nev. Rev. Stat. §§ 361.590(1), 361.585(3).
If equity is stolen, who profits?
- Analysis
-
The homeowner ordinarily retains the surplus proceeds from a sale unless no proceeds are generated under the loopholes described above.
- Citation
-
Nev. Rev. Stat. §§ 361.610(4), (6).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Prior owner must submit claim for proceeds within one year of issuance of the tax deed.
- Citation
-
Nev. Rev. Stat. §§ 361.610(4), 361.604(3).
What types of foreclosures are used in the state?
- Analysis
-
Automatic. The tax lien certificate is transformed into a tax deed, which the county holds in trust until it sells the property or conveys it without sale to an Indian tribe.
- Citation
-
Nev. Rev. Stat. § 361.585.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of tax sale, (3) notice of foreclosure, (4) notice of application for tax deed, and (5) final notice of delinquency.
- Citation
-
Nev. Rev. Stat. Ann. §§ 361.5648(1)−(2); 361.565(1), 361.595(3)(a)−(b), 361.670(1), 361.675(1), 361.690, 361.5648(4), 361.605, 361.610(4).
New Hampshire Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Municipalities have a statutory and constitutional obligation to return surplus proceeds from the sale of tax-deeded land or to provide just compensation when the city retains the property for public use.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:88, 80:89; Polonsky v. Town of Bedford, 173 N.H. 226 (2020).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Upon tax delinquency, a tax lien is placed on the property. If not redeemed, the tax lien is automatically transformed into a tax deed (unless refused by the city) after two years. The city can either retain the property for its own use in accordance with the state and federal constitutions or sell the tax-deeded property at auction.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:76, 80:80(V).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
The interest is 14% per year of the whole amount of the lien from the date of execution to the time of payment in full. The penalty is 10% of the assessed value of the property as of the date of the tax deed.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:69, 80:90.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years. Any time until the issuance of the tax deed.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:69, 80:76.
If equity is stolen, who profits?
- Analysis
-
The property owner receives the surplus proceeds from any subsequent sale and is entitled to receive just compensation for the taking of his or her property.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:88, 80:89; Polonsky v. Town of Bedford, 173 N.H. 226 (2020).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
If there are excess proceeds, the municipality must provide the superior court with the excess funds. The court will distribute the funds to the former owner and other interest holders in accordance with their interest. Former owners are not required to engage in any process to secure the just compensation to which they are entitled.
- Citation
-
N.H. Rev. Stat. Ann. § 80:88; Polonsky v. Town of Bedford, 173 N.H. 226 (2020).
What types of foreclosures are used in the state?
- Analysis
-
Automatic transformation of a tax lien into a tax deed granting full title to the lienholder.
- Citation
-
N.H. Rev. Stat. Ann. § 80:76.
What types of notice does the state require?
- Analysis
-
(1) Notice of execution of tax lien, (2) notice of execution of tax deed, and (3) notice of sale of the tax deeded property.
- Citation
-
N.H. Rev. Stat. Ann. §§ 80:60, 80:77, 80:89.
New Jersey Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. Municipalities in New Jersey sell tax liens at a base price fixed by the amount of the debt. Bidders compete by bidding down the interest rate they will charge for redemption. If the rate is bid down below 1%, bidders may compete by offering to pay a premium over the debt amount. If the property is unredeemed, any premium paid for the tax lien is credited to the municipality’s funds.
- Citation
-
N.J. Stat. Ann. §§ 54:5-32, -33.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at a base priced fixed by the amount of debt, and bidders bid down on the interest rate that they will charge for redemption. If the interest rate is bid down below 1%, bidders may compete by offering to pay a premium over the debt amount.
- Citation
-
N.J. Stat. Ann. §§ 54:5-32, -33.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest on delinquent taxes is set by the municipality but may not exceed 8% on the first $1,500 and 18% on the remaining debt. After the tax lien sale, the interest rate for redemption will be whatever interest rate was offered by the successful bidder, and it must be paid to the lienholder to redeem.
- Citation
-
N.J. Stat. Ann. §§ 54:4-67, 54:5-32.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Typically, the lienholder may bring an action to foreclose the property two years after the date of the tax lien sale. However, if the purchaser at the tax lien sale was a municipality, foreclosure proceedings may commence six months after the date of sale. In either case, redemption remains available until a final order of foreclosure is issued by the court.
- Citation
-
N.J. Stat. Ann. § 54:5-86(a).
If equity is stolen, who profits?
- Analysis
-
Where no premium was paid at the tax lien sale, the equity is kept by the tax lien purchaser. If a premium is paid, then the equity is divided between the purchaser and the government, commensurate with the amount of the premium.
- Citation
-
N.J. Stat. Ann. §§ 54:5-32, 54:5-104.64.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial; for most lienholders, the proceeding is in personam. Municipal lienholders, however, may bring an action in rem.
- Citation
- N.J. Stat. Ann. §§ 54:5-86, -86.3, -104.32.
What types of notice does the state require?
- Analysis
-
(1) Notice of impending tax lien sales, and (2) foreclosure proceedings carry the usual rules of notice in judicial action.
- Citation
-
N.J. Stat. Ann. §§ 54:5-26, -27, -86, -90, -104.48.
New Mexico Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Surplus proceeds received by the government from the sale of real or personal property for delinquent property taxes must be distributed to the former owner and other interest holders.
- Citation
-
N.M. Stat. Ann. § 7-38-71(A)(4).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government may sell lien-encumbered property at auction. Liens are not sold to third-party investors.
- Citation
-
N.M. Stat. Ann. §§ 7-38-65, -66.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest is 1% per month or fraction of a month and does not accrue on penalties. Penalties are 1% per month but not more than 5% of the total delinquent taxes and no less than $5. If there is intent to defraud, the greater of $50 or 50% of taxes owed.
- Citation
-
N.M. Stat. Ann. §§ 7-38-49, -50.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least three years after delinquency. Any time before 5 p.m. the day prior to the date of sale.
- Citation
-
N.M. Stat. Ann. § 7-38-65(A).
Who keeps the equity, and what are the post-foreclosure sale requirements, if any?
- Analysis
-
The equity is retained by the homeowner. The lien lasts indefinitely or until the property is sold by the government.
- Citation
-
N.M. Stat. Ann. § 7-38-71(A)(4).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Two years to make a claim for proceeds.
- Citation
-
N.M. Stat. Ann. § 7-38-70(C).
What types of foreclosures are used in the state?
- Analysis
-
Automatic. After the redemption period expires, the property may be sold to cover the tax debt.
- Citation
-
N.M. Stat. Ann. §§ 7-38-65, -66.
What types of notice does the state require?
- Analysis
-
(1) Date of delinquency, (2) notice of tax sale, (3) notice of impending default.
- Citation
-
N.M. Stat. Ann. §§ 7-38-60, -46(D), -66(A), -67(B), (D), -51(A)(1), (B).
New York Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
No. Failure to redeem forever bars the former owner from asserting any right or title in the property.
- Citation
-
Citation: N.Y. Real Prop. Tax §§ 1131, 1194(10).
Are there any exceptions to that rule?
- Analysis
-
No. However, under limited circumstances, a county or municipality may opt to enforce taxes in accordance with its own system, rather than Article 11 of the state’s tax code. Theoretically, this could mean that property owners in some cities are able to secure the equity value of their property after foreclosure.
- Citation
-
N.Y. Real Prop. Tax § 1104.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
Local tax districts do not sell tax liens to private investors under the tax code but may do so if they have opted out of Article 11. Rather, they foreclose on the property or take a deed to the property in lieu of foreclosure. Foreclosure vests title in the property to the tax district, which is authorized but not obligated to sell the property. Alternatively, the tax district can sell the lien to the N.Y. Municipal Bond Agency, which can foreclose the lien in accordance with the state mortgage foreclosure procedures.
- Citation
-
N.Y. Real Prop. Tax §§ 1123, 1166, 1170, 1190, 1194.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
There is a penalty of 5% of the delinquent tax as levied. The tax commissioner may set the rate of interest, but it cannot be less than 12% of the unpaid taxes per year. The Schenectady County legislature may impose a rate of 15% per year. The interest rate may be lowered by local rules for installment payments.
- Citation
-
N.Y. Real Prop. Tax §§ 936, 924-a(2)−(3).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Two years after the generation of the tax lien. One year for vacant and abandoned property. A tax district can adopt a three- or four-year redemption period for residential or farmland.
- Citation
-
N.Y. Real Prop. Tax §§ 1110, 1111.
Who keeps the equity, and what are the post-foreclosure sale requirements, if any?
- Analysis
-
The foreclosing party keeps all equity and acquires full title to the property. There is no sale requirement.
- Citation
-
N.Y. Real Prop. Tax §§ 1131, 1194(10).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
N.Y. Real Prop. Tax § 1120.
What types of notice does the state require?
- Analysis
-
(1) Notice of commencement of foreclosure proceedings.
- Citation
-
N.Y. Real Prop. Tax § 1125.
North Carolina Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Foreclosure of a tax lien follows state mortgage proceedings. Surplus proceeds from the subsequent sale are distributed to “whomever is entitled to receive them,” which includes the prior owner. Sale can be limited to part of the property (“enough to satisfy the lien”).
- Citation
-
N.C. Gen. Stat. §§ 105-374(k), (q)(6).
Are there any exceptions to that rule?
- Analysis
-
N/A
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens to private investors. Rather, it seeks the foreclosure of liens through either judicial foreclosure or automatic in rem foreclosure. In either case, the sale of the property by public auction is required.
- Citation
-
N.C. Gen. Stat. §§ 105-374, -375.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest on taxes from January 6 to February 1 is 2%. From February 1 onward, it is 0.75%. After the tax certificate is filed with the court, the debt accrues 8% annually. The penalty is 10% of the unpaid taxes, and the foreclosure commissioner receives a fee equal to 5% of the sale price.
- Citation
-
N.C. Gen. Stat. §§ 105-360(a), -375(d), -364(c)(1), -374(i).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
The property owner may redeem until the foreclosure sale is confirmed. There is no minimum amount of time recognized by the foreclosure statute.
- Citation
-
N.C. Gen. Stat. § 105-374; Gower v. Town of Clayton, 215 N.C. 82 (1939).
Who keeps the equity, and what are the post-foreclosure sale requirements, if any?
- Analysis
-
The former owner retains the excess proceeds. An order of judgment in favor of the taxing unit will require the sale of the property at public auction to satisfy the debt.
- Citation
-
N.C. Gen. Stat. § 105-374(q)(6).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The obligation is on the property seller to distribute the proceeds. However, a special proceeding may be initiated before the clerk of the superior court by the former owner to establish the right to excess proceeds.
- Citation
-
N.C. Gen. Stat. §§ 105-374(q), 105-375(i), 1-339.70.
What types of foreclosures are used in the state?
- Analysis
-
Judicial and in rem non-judicial foreclosure.
- Citation
-
N.C. Gen. Stat. §§ 105-375, -374.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of filing tax lien certificate, and (3) notice of impending sale.
- Citation
-
N.C. Gen. Stat. §§ 105-369(b)(1)−(g), -375(b)−(c), -374(i)(2).
North Dakota Home Equity Theft Laws
Does the state commonly protect owners’ equity?
- Analysis
-
Yes. Tax-deeded land is sold at an annual sale. Surplus proceeds are returned to the former owner if claimed.
- Citation
-
N.D. Cent. Code § 57-28-20(1)(a).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens to private investors. Rather, tax-deeded land is sold by the government at an annual sale.
- Citation
-
N.D. Cent. Code §§ 57-28-09, -10, -13.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest is 12% starting January 1 of the year following taxes due. Penalties accrue by length of delinquency and are broken down by quarter as follows: March 1–May 1 at 3%, May 1–July 1 at 6%, July 1–October 15 at 9%, and October 15 forward at 12%.
- Citation
-
N.D. Cent. Code §§ 57-20-26, -01.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years. The redemption period runs as long as the lien is held by the county.
- Citation
-
N.D. Cent. Code §§ 57-28-01, -19.
If equity is stolen, who profits?
- Analysis
-
The homeowner has the right to claim surplus proceeds from a tax deed sale. Tax-deeded property is required to be sold at an annual sale. If a property is not sold at the tax deed sale, the board of county commissioners can engage licensed real estate brokers to attempt a private sale.
- Citation
-
N.D. Cent. Code §§ 57-28-09, -10, -13, -17.1.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner has 90 days to make a claim for surplus proceeds.
- Citation
-
N.D. Cent. Code § 57-28-20(1)(a).
What types of foreclosures are used in the state?
- Analysis
-
Automatic. Failure to satisfy the tax lien within the redemption period passes the owner’s interest to the county.
- Citation
-
N.D. Cent. Code §§ 57-28-13, -08.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of foreclosure, and (3) notice of tax sale.
- Citation
-
N.D. Cent. Code §§ 57-20-26, 57-28-01, -04(1), -06, -14.
Ohio Home Equity Theft Laws
Does the state commonly protect owners’ equity?
- Analysis
-
Yes. Unclaimed money after a tax sale is returned to the former owner.
- Citation
-
Ohio Rev. Code Ann. § 5721.20.
Are there any exceptions to that rule?
- Analysis
-
Yes. When property is transferred without sale to another government body (such as the County Land Bank), no surplus proceeds are generated.
- Citation
-
Ohio Rev. Code Ann. §§ 5721.20, 323.78.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government may sell tax certificates to third parties, including county land reutilization corporations. The county treasurer can negotiate the sale price, including a premium to be added or a discount to be subtracted from the debt amount.
- Citation
-
Ohio Rev. Code Ann. § 5721.33.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
A 10% penalty is applied to unpaid taxes. Annual interest of the federal short-term rate will be applied to the unpaid taxes. The county treasurer can set a rate of interest on the sale of a tax certificate “in the best interests of the county.” That interest rate must be paid by the owner in order to redeem the property.
- Citation
-
Ohio Rev. Code Ann. § 5721.33.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least one year. Any time until confirmation of sale. The county treasurer can invoke an alternative redemption period for abandoned property, which is 28 days after a decree of foreclosure.
- Citation
-
Ohio Rev. Code Ann. §§ 5721.37, 323.78(a).
If equity is stolen, who profits?
- Analysis
-
The former owner will receive excess proceeds from a tax sale. Property must be sold or, subject to the loophole described above, transferred to a government entity without sale.
- Citation
-
Ohio Rev. Code Ann. § 5721.39.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner has three years to make a demand for the surplus.
- Citation
-
Ohio Rev. Code Ann. § 5721.20.
What types of foreclosures are used in the state?
- Analysis
-
Administrative foreclosure by the board of revision if abandoned property. Judicial foreclosure otherwise.
- Citation
-
Ohio Rev. Code Ann. § 323.25.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of foreclosure petition filed, and (3) notice of tax lien up for sale.
- Citation
-
Ohio Rev. Code Ann. §§ 5721.03(1)−(2), 5721.18, 5721.14(c), 5721.31(B)(1)−(2).
Oklahoma Home Equity Theft Laws
Does the state commonly protect owners’ equity?
- Analysis
-
Yes. Former owners are entitled to surplus proceeds from a tax sale. The county treasurer must sell property after the redemption period expires.
- Citation
-
Okla. Stat. tit. 68, §§ 3131(C), 3125.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens to third parties. It sells the property itself at auction once the redemption period for the lien expires.
- Citation
-
Okla. Stat. tit. 68, §§ 3105, 3125.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest of 1.5% on the delinquent taxes until the interest collected equals the delinquent taxes. Penalty of 5% if owed by a non-individual and if the property is in a dependent school district in a county with fewer than 75,000 people. The county can waive penalties or interest incurred through no fault of the taxpayer.
- Citation
-
Okla. Stat. tit. 68, § 2913(D), (G), (E).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least three years from the date taxes first became due and payable. Any time prior to a deed of conveyance made by the county treasurer. Minors or other legally incapacitated individuals have an additional year beyond the expiration of their disability.
- Citation
-
Okla. Stat. tit. 68, §§ 3131, 3113, 3105.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner must make a claim within one year.
- Citation
-
Okla. Stat. tit. 68, § 3131(C).
What types of foreclosures are used in the state?
- Analysis
-
Automatic. The right to sell the property for delinquent taxes vests as soon as the three-year redemption period passes.
- Citation
-
Okla. Stat. tit. 68, § 3105.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, and (2) notice of tax sale.
- Citation
-
Okla. Stat. tit. 68, §§ 3106, 3127.
Oregon Home Equity Theft Laws
Does the state commonly protect owners’ equity?
- Analysis
-
April 2024 update: In the 2024 short session, Oregon enacted a temporary moratorium on home equity theft and directed counties and the Department of Revenue to recommend permanent reforms in the 2025 regular session.
- Citation
-
N/A
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government forecloses on its own tax liens, which grants it absolute title, free and clear from encumbrances once the redemption period has expired.
- Citation
-
Or. Rev. Stat. § 312.270.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
The legislative assembly reviews every other year. The interest rate is currently 1.33% per month or fraction of a month. Taxes are paid in thirds: November 15, February 15, and May 15. Interest starts accruing on the portion that remains unpaid for each date. A 5% penalty is applied to the redemption amount upon redemption.
- Citation
-
Or. Rev. Stat. §§ 311.506, 311.505(2), 312.120(2).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Foreclosure proceedings may be initiated three years after the tax delinquency. The right to redeem survives two years after the date of the foreclosure judgment. The redemption period is only 30 days if the property is abandoned.
- Citation
-
Or. Rev. Stat. §§ 312.010, 312.120(1)−(2), 312.122(1)(b).
If equity is stolen, who profits?
- Analysis
-
The county.
- Citation
-
Or. Rev. Stat. § 312.270.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Or. Rev. Stat. § 312.060.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of foreclosure proceedings, and (3) notice of imminent expiration of redemption period.
- Citation
-
Or. Rev. Stat. §§ 311.510(1)−(2), 312.040, 312.190.
Pennsylvania Home Equity Theft Laws
Does the state commonly protect owners’ equity? Yes. Former owners are entitled to surplus proceeds from a tax sale. The property must be sold after the redemption period expires. Citation: 72 Pa. Cons. Stat. §§ 5860.205, 5860.601, 5860.610, 5860.613.
- Analysis
-
Yes. Former owners are entitled to surplus proceeds from a tax sale. The property must be sold after the redemption period expires.
- Citation
-
72 Pa. Cons. Stat. §§ 5860.205, 5860.601, 5860.610, 5860.613.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
A taxing district may assign its claim to a third party. The county and assignee may agree on any price in writing. This does not affect the redemption amount.
- Citation
-
72 Pa. Cons. Stat. § 5860.205.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest is charged on delinquent taxes at a rate of 9% per year.
- Citation
-
72 Pa. Cons. Stat. § 5860.306.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Up to July 1 of the year following the notice of the claim. This effectively provides 11 months for the redemption period, which can be extended by the county by up to 12 months (or 15 months if the occupant is more than 65 years old).
- Citation
-
72 Pa. Cons. Stat. §§ 5860.501, 5860.502, 5860.504.
If equity is stolen, who profits?
- Analysis
-
N/A.
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner has three years from the date of the sale to present a claim for the surplus proceeds.
- Citation
-
72 Pa. Cons. Stat. § 5860.205(f).
What types of foreclosures are used in the state?
- Analysis
-
Automatic. Once the redemption period has passed and the claim for taxes has been finalized, the tax bureau will sell the property at a public sale. If no acceptable bid is received, the tax bureau may petition for a judicial sale. If the judicial sale fails, the property may be sold at a private sale.
- Citation
-
72 Pa. Cons. Stat. §§ 5860.601, 5860.610, 5860.613.
What types of notice does the state require?
- Analysis
-
(1) Notice of sale, (2) notice of judicial sale, and (3) notice of overdue taxes.
- Citation
-
72 Pa. Cons. Stat. §§ 5860.601(a)(3), 5860.611, 5860.612(a)−(b), 5860.308, 5879.
Rhode Island Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. After taxes become delinquent, a municipality will usually sell the tax title to a third party for the smallest share of ownership of the property. In other words, investors may purchase as little as a 1% interest in the property or as much as the whole property for the amount owed. Foreclosure of the right to redeem conveys the percentage of interest in the title to the holder of the tax deed. However, as a practical matter, such arcane auctions often fail to attract competitive bidding.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-24, -8.1, -8; Picerne v. Sylvestre, 113 R.I. 598, 603 (1974) (“As a practical matter, the only offer made in most sales is for the whole interest.”); but see Patrick Anderson, Should Rhode Island tax sales be for ‘locals only’? Bill seeks to reduce out-of-state competition, The Providence Journal (May 7, 2022) (online tax sales conducted by Providence and North Kingston are highly competitive and seem to protect equity).
Are there any exceptions to that rule?
- Analysis
-
Yes. When the city determines that the property is necessary for a public use, the city may take the title and almost immediate possession of the property. The statute does not require a subsequent sale and return of surplus proceeds.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-8.1, -25, -37, -38.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government may either take a property for itself or sell a tax deed on the property to a third party (who offers to pay the debt for the smallest share of the whole property), subject to the right to redeem.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-8.1, -8.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
If redemption is secured from the city, a penalty of 10% of the purchase price for the tax deed will be included within the redemption amount if redeemed within six months of the collector’s sale. An additional 1% will be included for each additional month, along with subsequent taxes and an interest rate of 1% per month.
If redemption is secured from a third-party tax deed holder, the penalty will be included in the instrument of assignment.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-19, -21.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least one year from the sale of land for taxes. Up until the petition for foreclosure is filed.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-21, -19.
If equity is stolen, who profits?
- Analysis
-
The government.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-25, -30.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Judicial. Petition for the foreclosure of the right of redemption is filed in the superior court.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-25, -30.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax taking, (2) notice of sale, and (3) notice of foreclosure petition.
- Citation
-
44 R.I. Gen. Laws §§ 44-9-8.1(b), -25.1(2), -10.
South Carolina Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The former owner is entitled to any excess funds from a tax sale.
- Citation
-
S.C. Code Ann. § 12-51-60.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property at auction to cover the amount due and returns the excess proceeds to property owners.
- Citation
-
S.C. Code Ann. § 12-51-60.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Interest imposed depends on the month the redemption is made. If redeeming 0–3 months after the sale, it is 3% of the bid amount. If 4–6 months, it is 6% of the bid amount. If 7–9 months, it is 9% of the bid amount. If 10–12 months, it is 12% of the bid amount. Interest cannot exceed the amount due on the property.
Penalties imposed are the following: 3% if taxes are not paid by January 16 or 30 days after mailing a notice, 7% if not paid by February 2, and an additional 5% if not paid by March 17.
- Citation
-
S.C. Code Ann. §§ 12-51-90(b), 12-45-180.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least one year and 30 days. Until one year after the tax sale.
- Citation
-
S.C. Code Ann. § 12-51-90.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The tax collector must provide written notice to the former owner that there is an excess to be claimed. The amount is payable 90 days after the execution of the tax deed and must be claimed within five years.
- Citation
-
S.C. Code Ann. §§ 12-51-60, -130.
What types of foreclosures are used in the state?
- Analysis
-
Automatic. The treasurer has the right to take and sell the property when payment is not received on the delinquent tax bill within 30 days of notice.
- Citation
-
S.C. Code Ann. § 12-51-40.
What types of notice does the state require?
- Analysis
-
(1) Notice of delinquency, (2) notice of tax deed issued, (3) notice of excess funds, and (4) notice of impending termination of the redemption period.
- Citation
-
S.C. Code Ann. §§ 12-51-40(b), -60, -130, -120.
South Dakota Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
February 2024 update: South Dakota became the first state to introduce and pass home equity theft reform legislation after Tyler v. Hennepin County was decided. HB1090 was passed by wide margins, with the support of the Department of Revenue. Gov. Noem signed the bill into law in a signing ceremony on February 12, 2024.
- Citation
-
N/A
Are there any exceptions to that rule?
- Analysis
-
Maybe. The county may reconvey by quitclaim deed to the record owner of the property for consideration of at least the amount of the taxes, interests, and costs represented by the tax deed. Otherwise, there is no obligation to sell the property or provide just compensation for the lost equity.
- Citation
-
S.D. Codified Laws §§ 10-25-41, -12.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government can sell its tax liens to private purchasers for the full amount of taxes, interest, and costs, stating the lowest rate of interest at which the bidder will pay the taxes due against the property. The highest interest rate bid allowed by statute is 10%. If a bid is not received at public auction, the county can sell the tax certificate at a private sale.
- Citation
-
S.D. Codified Laws § 10-23-8.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Prior to the sale of the tax certificate, the delinquent taxes accrue interest at a rate of 0.83% per month. The tax certificate purchaser bids down the interest rate, with a maximum annual rate of 10%.
- Citation
-
S.D. Codified Laws §§ 10-21-23, -8.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least three years after the tax certificate sale. At any point before the issuance of the tax deed, the owner can redeem by paying the tax certificate amount.
- Citation
-
S.D. Codified Laws §§ 10-24-1, 10-25-1.
If equity is stolen, who profits?
- Analysis
-
The government or other tax deed holder keeps the equity value of the property with no obligation to sell the property. The government may sell the tax-deeded property back to the homeowner for the taxes due.
- Citation
-
S.D. Codified Laws §§ 10-22-27, 10-25-41, -12.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
N/A
- Citation
-
N/A
What types of foreclosures are used in the state?
- Analysis
-
Automatic. Immediately after 60 days after service of the notice of intent to apply for a tax deed, the treasurer will prepare a deed for each property subject to an unredeemed tax certificate. This conveys fee simple absolute to the deed holder.
- Citation
-
S.D. Codified Laws § 10-25-11.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax certificate sale, (2) notice that a deed will issue on the property if unredeemed, and (3) notice of intent to take the tax deed.
- Citation
-
S.D. Codified Laws §§ 10-23-2, 10-26-4, 10-25-2.
Tennessee Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Former owners are entitled to excess proceeds from a tax sale.
- Citation
-
Tenn. Code Ann. § 67-5-2702(c)(4).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens to third parties. It will foreclose on a tax lien and sell the property at an in-person or electronic auction.
- Citation
-
Tenn. Code Ann. § 67-5-2501.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes have a monthly interest rate of 1.5% starting March 1. After the purchaser has paid for the property, an interest rate of 12% per year must be paid to redeem.
- Citation
-
Tenn. Code Ann. §§ 67-5-2010(a), -2701(d).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
One year from the date of the entry of the order confirming the sale. Can be reduced to 180 or 90 days, depending on the length of delinquency. Vacant property must be redeemed within 30 days.
- Citation
-
Tenn. Code Ann. § 67-5-2701(a).
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
A person who claims to be the owner must submit a motion to the court to claim any excess proceeds from a tax sale. The motion must be supported by documentation of ownership. The right to seek disbursement of surplus proceeds expires one year after the redemption period expires or the final determination of motions is complete, whichever is later.
- Citation
-
Tenn. Code Ann. § 67-5-2702.
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Tenn. Code Ann. § 67-5-2702(d).
What types of notice does the state require?
- Analysis
-
(1) Notice of impending default, (2) notice of foreclosure suit filed, (3) notice of sale, and (4) notice of the amount of surplus proceeds.
- Citation
-
Tenn. Code Ann. §§ 67-5-2402(a), -2502(b)−(c), -2502(a)(1)−(3).
Texas Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The former owner has the right to claim excess proceeds.
- Citation
-
Tex. Tax Code § 34.04(a).
Are there any exceptions to that rule?
- Analysis
-
There is a loophole whereby the government can sell tax-foreclosed property for less than market value if it is consistent with a municipality’s redevelopment plans or affordable housing policy. Though the surplus proceeds must still be returned to the former owner, it is a reduced amount and does not represent the just compensation demanded by the U.S. Constitution.
- Citation
-
Tex. Tax Code § 34.051.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government may sell a tax lien to a third party for the cost of the delinquent taxes.
- Citation
-
Tex. Tax Code § 32.06.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
An interest rate of 1% per month in which a delinquent tax debt is left unpaid is applied. Penalty of 6% of the amount of tax for the first month, plus 1% for each additional month until July 1, when the penalty is 12%, regardless of the number of months the tax has been delinquent. If the property owner has been granted an exemption under Tex. Tax Code § 11.13 for their residence homestead, they can pay the delinquent taxes in installments, during which time no penalty accrues. Depending on the taxing unit or appraisal district, taxes that become delinquent between February 1 and May 1 and are still delinquent on July 1 of that year incur an additional penalty not to exceed the amount the district or unit contracted for with an attorney for the collection of the delinquent taxes. Likewise, if a unit or district has imposed the additional penalty and has contracted with a lawyer, it can impose an additional penalty on taxes that become delinquent on or after June 1. If an owner redeems the property in the first year, they must pay a penalty of 25% of the aggregate total of the amount the purchaser bid on the property, the amount of the deed recording fee, and the amount the purchaser paid in taxes, penalties, interest, and costs on the property. If the redeemer redeems within two years, they must pay a penalty of 50% of the aggregate total.
- Citation
-
Tex. Tax Code §§ 33.01(a), 33.02(b-1), 33.07(a), 33.08(a)−(c), 34.21(a).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Two years from the date the tax sale purchaser’s deed is filed for residence homesteads, land designated for agricultural use, or mineral interests. And 108 days from the date the purchaser’s deed was filed for any other property.
- Citation
-
Tex. Tax Code § 34.21(a), (e).
If equity is stolen, who profits?
- Analysis
-
\The government or a private party when the government sells the property at a discount to further a redevelopment plan or affordable housing.
- Citation
-
Tex. Tax Code § 34.051.
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner has two years to make a claim to the court for the surplus proceeds.
- Citation
-
Tex. Tax Code § 34.03(a)(3).
What types of foreclosures are used in the state?
- Analysis
-
The property may be subject to judicial foreclosure or, if held by the government, a tax warrant authorizing seizure and sale can be issued against the property. The required sale procedures are the same in either case.
- Citation
-
Tex. Tax Code §§ 33.91, 34.01.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of property seizure, and (3) notice of tax warrant.
- Citation
-
Tex. Tax Code §§ 33.04(a), 33.045(a), 33.94(a), 33.912(a)−(c), (i).
Utah Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Surplus proceeds from a tax sale are treated as unclaimed property that can be claimed by the former owner.
- Citation
-
Utah Code Ann. §§ 59-2-1351.1(7), 67-4a-903(1).
Are there any exceptions to that rule?
- Analysis
-
Maybe. If there are no acceptable bids at a tax sale, the county will have fee simple title to the property. The county legislative body has the power to decide that none of the bids are acceptable.
- Citation
-
Utah Code Ann. §§ 59-2-1351.3(1)−(2), -1351.1(5).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens to third parties. After the expiration of the redemption period, the county will sell the property at a public sale.
- Citation
-
Utah Code Ann. § 59-2-1351.1.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
An interest rate of 6% plus the federal funds rate target. This rate has to be between 7% and 10%. This rate will be calculated every year. A penalty of $10 or 2.5% of the delinquent taxes, whichever is more. If the taxes are paid by January 31, the penalty is 1% of the delinquent taxes or $10, whichever is greater.
- Citation
-
Utah Code Ann. §§ 59-2-1331(2)–(3).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least four years. Until the time of sale.
- Citation
-
Utah Code Ann. § 59-2-1346(1).
If equity is stolen, who profits?
- Analysis
-
The former owner has the right to claim surplus proceeds. The right to sell the property vests immediately after the expiration of the redemption period. The county will sell the property if there is an acceptable bid. However, if the county decides that there is no acceptable bid, then that would mean that the county takes the windfall of the equity.
- Citation
-
Utah Code Ann. §§ 59-2-1351.1, -1351.3(1)−(2).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The prior owner must submit a claim for the surplus proceeds within three years.
- Citation
-
Utah Code Ann. § 67-4a-201(14).
What types of foreclosures are used in the state?
- Analysis
-
Automatic.
- Citation
-
Utah Code Ann. § 59-2-1351.1.
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, and (2) notice of tax sale.
- Citation
-
Utah Code Ann. §§ 59-2-1332.5(3)(a)(i), -1351(2).
Vermont Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Tax liens are foreclosed in the same way as mortgages: The property is sold, and the excess proceeds are returned to the original property owner.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5061(b); tit. 12, § 2735; Bogie v. Barnet, 129 Vt. 46, 48 (1970).
Are there any exceptions to that rule?
- Analysis
-
No. Further, if there is no bid at the foreclosure sale, the municipality may purchase the property for the amount of taxes and make a private sale. It must return the surplus proceeds to the former owner.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5259.
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government may either sell the lien to a third party or foreclose the lien itself. The sale price is the amount of taxes and costs assessed on the property.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5076.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
The municipality can charge up to 1% for the first three months after a tax due date, and then up to 1.5% per month after that. An interest rate of 1% per month on the amount the property was sold for, from the day of sale to the day of redemption. If the municipality does not vote for a lower percentage, the penalty will be 8% of the amount of the tax.
- Citation
-
Vt. Stat. Ann. tit. 32, §§ 5136(a), 5260.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Two years before the judge’s decree of foreclosure, then one year from the judge’s decree to the date of sale, and then one year from the date of sale.
- Citation
-
Vt. Stat. Ann. tit. 32, §§ 5061(b), 5260, 1674(2).
If equity is stolen, who profits?
- Analysis
-
N/A.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5061(b).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The proceeds are distributed by the commissioner who sells the property.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5061(b).
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Vt. Stat. Ann. tit. 32, § 5061(b).
What types of notice does the state require?
- Analysis
-
(1) Notice of overdue taxes, (2) notice of intent to foreclose, (3) notice of the sale of land for delinquent taxes, and (4) further notices required by the court.
- Citation
-
Vt. Stat. Ann. tit. 32, §§ 5252(a), 5061(b); tit. 12, § 4962.
Virginia Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. Surplus proceeds from the sale of land for delinquent taxes are returned to the prior owner.
- Citation
-
Va. Code Ann. § 58.1-3967.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government does not sell tax liens. Rather, it may sell lien-encumbered property to cover delinquent taxes after the redemption period expires.
- Citation
-
Va. Code Ann. §§ 58.1-3965, -3967, -3975.
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Maximum of 10% interest, but the government body can impose a smaller rate. A penalty of 5% will be imposed if the taxpayer does not pay the taxes by December 5. The governing body can change the amount of penalty charged, but it cannot be more than 10%.
- Citation
-
Va. Code Ann. §§ 58.1-3918, -3916, -3915.
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
At least two years, unless the property is worth less than $100,000 or is blighted. In this case, the redemption period is at least one year. In either case, the redemption period is open until the date of sale.
- Citation
-
Va. Code Ann. § 58.1-3965(A).
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
Prior owners have two years to make a claim for surplus proceeds. A request for proceeds may be granted by the foreclosing entity at its discretion after two years.
- Citation
-
Va. Code Ann. §§ 58.1-3967, -3970.
What types of foreclosures are used in the state?
- Analysis
-
Automatic. The right to seek a sale of the property vests immediately after expiration of the right of redemption.
- Citation
-
Va. Code Ann. § 58.1-3965.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) notice of tax sale, and (3) notice of foreclosure judgment.
- Citation
-
Va. Code Ann. §§ 58.1-3965(A), (H).
Washington Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. The government sells the property, and the former owner may claim surplus proceeds.
- Citation
-
Wash. Rev. Code § 84.64.080(10).
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells property outright at public auction to the highest bidder.
- Citation
-
Wash. Rev. Code § 84.64.080(4).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 9% annually for residential properties with four or fewer units and at 12% for all other properties. These other properties are also subject to a 3% one-time penalty assessed on June 1 and an 8% one-time penalty on December 1 of the year in which taxes are due.
- Citation
-
Wash. Rev. Code § 84.56.020(5).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available at any time until the day of the foreclosure sale. Foreclosure proceedings may not begin until the property has been delinquent for three years.
- Citation
-
Wash. Rev. Code §§ 84.64.070(1), 84.64.050(1).
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must apply for the funds within three years from the date of sale.
- Citation
-
Wash. Rev. Code § 84.64.080.
What types of foreclosures are used in the state?
- Analysis
-
Judicial.
- Citation
-
Wash. Rev. Code § 84.64.080.
What types of notice does the state require?
- Analysis
-
(1) Notice when taxes become delinquent, (2) notice before tax sale, and (3) the usual notice requirements attendant to a judicial proceeding.
- Citation
-
Wash. Rev. Code §§ 84.56.020(6)−(7), 84.64.080(5), 836.35.120(3), 4.28.110, 4.28.080(16).
West Virginia Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
Yes. After the foreclosure, the former owner may collect surplus proceeds from the tax-lien sale.
- Citation
-
W. Va. Code § 11A-3-65.
Are there any exceptions to that rule?
- Analysis
-
No.
- Citation
-
N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government sells tax liens at auction to the highest bidder.
- Citation
-
W. Va. Code § 11A-3-45(a).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
Delinquent taxes accrue interest at 9% per year. After the tax lien sale, redemption requires additional interest payments of 1% per month from the date of the sale.
- Citation
-
W. Va. Code §§ 11A-1-3(a), 11A-3-56(a)(1).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Redemption is available at any point before a tax deed issues. The lienholder must send notice of redemption to the owner within 120 days of the approval of the sale by a government official and may not apply for a tax deed until 30 days have passed from the date of the notice.
- Citation
-
W. Va. Code §§ 11A-3-56(a), -54, -52.
If equity is stolen, who profits?
- Analysis
-
N/A
- Citation
-
N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The former owner must file a claim for the funds within two years after the sale is confirmed by a government official.
- Citation
-
W. Va. Code § 11A-3-65.
What types of foreclosures are used in the state?
- Analysis
-
Administrative.
- Citation
-
W. Va. Code § 11A-3-59.
What types of notice does the state require?
- Analysis
-
(1) Notice of tax delinquency, (2) second notice of tax delinquency and impending sale, and (3) notice of expiration of redemption.
- Citation
-
W. Va. Code §§ 11A-2-10a, 11A-3-2, -55.
Wisconsin Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
-
March 2024 update: In 2022, the Wisconsin legislature overwhelmingly passed Senate Bill 829, which ended most equity theft in the state. The bipartisan bill was championed by the Wisconsin Realtors Association and Pacific Legal Foundation.
Since then, former owners were entitled to the surplus proceeds following a sale of tax-deeded property at auction. However, the law contained a potential loophole because it did not expressly require the government to sell tax-deeded property. Rather, surplus proceeds were due to the former owner only if it decided to sell the property. Otherwise, the government could use the property for any purpose without providing just compensation to the former owner. In 2024, WRA and PLF again teamed up to pass Assembly Bill 969, which closed the loophole.
- Citation
-
N/A.
Are there any exceptions to that rule?
- Analysis
-
The county is not expressly required by statute to sell the property after taking a tax deed. If it retains the property, then no excess proceeds are generated.
- Citation
-
Wis. Stat. § 75.14(1).
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
-
The government takes a lien on the tax-indebted property, which is transformed into a tax deed upon application. Then, it may sell the property at a tax deed sale.
- Citation
-
Wis. Stat. §§ 74.57(2)(b), 74.635(2), 75.12, 75.14(1), 75.36(2m).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
-
The interest on delinquent property taxes is 1% per month. The county board may impose a penalty of up to 0.5% per month on delinquent property taxes.
- Citation
-
Wis. Stat. § 74.47(1)−(2).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
-
Two years after the tax certificate is issued, or if notice of the tax certificate issuance is not sent, two years from the date that it is eventually mailed.
- Citation
-
Wis. Stat. § 74.57(2)(b).
If equity is stolen, who profits?
- Analysis
-
There is no explicit statutory requirement to sell property subject to a tax deed. If the government does not sell the property, it will retain any equity.
- Citation
-
Wis. Stat. § 75.36(2m).
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
-
The obligation is on the county to attempt to locate the former owner. However, if, after five years, it has been unable to do so, the former owner forfeits the right to any remaining equity in the property.
- Citation
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Wis. Stat. § 75.36(2m).
What types of foreclosures are used in the state?
- Analysis
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Administrative. The county clerk will issue a tax deed marking foreclosure of the tax lien upon application.
- Citation
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Wis. Stat. §§ 75.12, 75.14(1).
What types of notice does the state require?
- Analysis
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(1) Notice of overdue taxes, (2) notice of application for tax deed, and (3) notice of impending expiration of the redemption period.
- Citation
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Wis. Stat. §§ 74.59(1)(a), 75.12, 75.07(1), 75.09.
Wyoming Home Equity Theft Laws
Does the law commonly protect owners’ equity?
- Analysis
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Yes. Surplus proceeds from tax sales are returned to the former owner, similar to mortgage sales. After foreclosure, the sheriff sells the property at a public auction and returns the proceeds to the court for distribution. The former owner keeps the surplus proceeds from a tax sale.
- Citation
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Wyo. Stat. Ann. §§ 39-13-108(d)(iii), (iv)(C).
Are there any exceptions to that rule?
- Analysis
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No.
- Citation
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N/A
Does the government sell tax liens, or does it sell property outright, and what procedures does it use for the sale?
- Analysis
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The government can sell tax liens (certificates of purchase) or keep them. Tax liens are sold for the amount of taxes due.
- Citation
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Wyo. Stat. Ann. § 39-13-108(d).
What interest and penalties accrue for delinquent taxes, and who collects them?
- Analysis
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Delinquent taxes have an interest rate of 18% per year.
- Citation
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Wyo. Stat. Ann. § 39-13-108(b)(ii).
What is the redemption period—the length of time to pay the debt prior to permanently losing title?
- Analysis
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At least four years. Until confirmation of a tax sale.
- Citation
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Wyo. Stat. Ann. § 39-13-108(d)(iii).
If equity is stolen, who profits?
- Analysis
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N/A
- Citation
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N/A
How much time does the previous owner have to claim the surplus proceeds, and what are the procedures for claiming them?
- Analysis
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The owner has two years from the date of confirmation of the sale.
- Citation
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Wyo. Stat. Ann. § 39-13-108(b)(iv)(C).
What types of foreclosures are used in the state?
- Analysis
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Judicial.
- Citation
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Wyo. Stat. Ann. § 39-13-108(d)(iii).
What types of notice does the state require?
- Analysis
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(1) Notice of delinquent taxes, (2) notice of tax lien sale, (3) notice of intent to foreclose, and (4) notice of excess proceeds.
- Citation
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Wyo. Stat. Ann. §§ 39-13-107(b)(ii)(B)(II), 39-13-108(e)(ii)(A), 34-4-103(a)(iv), 34-4-104(b).
Resources
Legal Appendix