Tax Sale

A tax sale occurs when a government authority sells a property due to the owner's failure to pay property taxes. Initially, the government will attempt to collect the owed taxes, but if payments are not made, they can auction the property to recover the owed amount. Buyers at the auction can acquire properties at potentially lower prices, although they may also inherit existing liens or debts. After the sale, the previous owner may have a redemption period to reclaim the property by paying the owed taxes and any associated fees. This process helps local governments maintain funding for public services.