Business & Finance Taxes

Can a Property Be Foreclosed on by the State of Florida if the Property Taxes Are Not Paid?

    Foreclosure and Taxes

    • According to Florida statues, counties enforce delinquency on property taxes. In Clay County, Florida, if you do not pay your property taxes, a lien can be placed on your home. However, the taxes themselves do not put you into foreclosure. According to Clay County law, the tax collector gives you a three percent penalty for late taxes with an additional 1.5 percent added each month.

    Tax Liens

    • If the mortgage has been paid, but the taxes have not been paid, a tax lien may be placed on your home that must be paid before a sale can take place. While this does not put you into foreclosure, it impairs your credit and makes a sale much more difficult. In addition, you may receive less cash from the sale of your home because the taxes and late penalties will be taken out prior to you receiving any funds.

    Further Consequences of Tax Liens

    • In addition to the three percent delinquency penalty and 1.5 percent monthly penalty on taxes, there are other consequences. In Clay County, the tax collector can request a warrant be issued on August 1, three months after taxes are due. If taxes are still unpaid 30 days later, he can appeal to the court to ratify the warrant. This allows the tax collector to take control and auction off personal property for delinquent tax payment.

    Foreclosure Prevention

    • For those at risk of foreclosure, there are a number of preventive measures to take. First and foremost, work with your lender to try to work out an equitable solution. This includes trying to rework the debt schedule and even trying to reduce the principal. If that does not work, there are also some federal programs including the Making Home Affordable Act, which provides assistance and counseling to those struggling to make payments.

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