What it Means When Your Property Goes to a Tax Lien Sale
When a homeowner in Nevada fails to pay property taxes, the government can sell a certificate of lien at public auction, known as a tax lien sale. While a tax lien sale is a red flag that a homeowner could soon lose his or her home to foreclosure, there are remedies available to help prevent struggling consumers from losing their homes.
What Are Tax Liens?
In Nevada, homes are taxed according to their assessed values and property taxes are paid quarterly to the county in which the property is located. When a homeowner becomes delinquent, the county will mail a notice of the delinquency to the homeowner and might also mail a copy to the mortgage lender. If the property taxes continue to be delinquent, the county may publish the delinquency notice in the local newspaper and on its website. The county treasurer may then receive a certificate that allows the home to be held by the county for two years subject to redemption. In other words, the homeowner has two years to pay delinquent taxes, accrued interest, and costs like penalties and fees.
Tax Lien Sales
Before the expiration of the redemption period, the homeowner will receive a final notice of the delinquency if the property taxes are still unpaid. If the property is not redeemed by the homeowner by paying the delinquent taxes, a deed to the property will be issued to the treasurer. This will allow the county treasurer to place the property for sale. The county is required to notify the homeowner of the decision to sell the home to recover the property taxes. The homeowner will be given a last chance to redeem the property before the sale by paying all of the taxes, interest, and penalties. If the home is not redeemed, it will be sold at the tax lien sale. The sales are conducted like auctions with the properties going to the highest bidders. If a home is sold at a tax lien sale, the former homeowner may file a challenge to any improper procedure that was used or claiming that the taxes were paid.