Real Estate Property Tax Consultation

Understanding the Lorain County Delinquent Property Tax Timeline

As a real estate investor for over 20+ years, I’ve seen my fair share of all things real estate. I’ve been on all sides of the transaction and I have an in-depth understanding of the delinquent property tax sales that occur when homeowners fall behind on their taxes in Lorain County.

Let’s dig into that a little….

Life throws curveballs and sometimes you swing and you miss, but when that happens and you strike out on paying your property taxes the county has just cause to demand payment and subsequently auction your house for the balance due. This isn’t legal advice and every instance is different, please contact your attorney or the County Auditor regarding your specific situation, but here’s the part you might not be aware of that not many people are willing to share.

What Happens When You Owe Property Taxes?

NO MORTGAGE (Owned Free-and-Clear):

Property taxes are due each year for the year in arrears. Each time you don’t pay the bill goes up and the property inches closer to tax foreclosure.  This occurs for various properties across the county at any time. The tax sales are held typically bi-weekly, but sometimes there is are additional sales in between the bi-weekly schedule.

MORTGAGE

If you owe a mortgage, chances are the reason you are behind on property taxes is that your escrow is not being met due to payments not being made to the mortgage company. If they don’t receive payment, they can’t pay the taxes, so they become the initiator of the foreclosure to pay the taxes that are due, but in most cases, they initiate foreclosure prior to that due to unmet repayment schedule of the mortgage. This triggers an online auction for the sale of the property and in most cases, the bank, having the highest stake in the property, wins the auction to make sure the sale warrants a high enough price for them to recoup the mortgage expense. If the auction goes above the amount owed to the bank, they are more apt to let it go to an investor or another buyer once the amount of their initial outlay is recouped.

Timeline:

Every timeline is different. Once the process begins it’s best to be in contact with the County Auditor’s office to see about a repayment plan, your own recourse or any additional information that is relevant to your property. If you’re unsure how to proceed and you don’t want to sell your home call me to discuss alternative options or contact an attorney to handle your case with the banks and the county court system.

Once an auction date is set, it doesn’t mean it’s finalized. You can continue to work on the situation with the county, but at that point you should be working with an attorney.

If it goes to auction you risk losing the property to the bank or a buyer.

Auction Day:

What Occurs?

NO MORTGAGE (Owned free-and-Clear):

The property will be up for sale at the in-person Sheriff’s Sale if there’s no mortgage company. The Sheriff’s Sale is held in person in downtown Elyria.

MORTGAGE:

The property will be offered at Sheriff’s Sale via online auction if there is a mortgage. The online auction requires prior registration and funding of the initial amount down at the time of sale.

After The Sale:

Once the window of opportunity is closed, the bidder from the auction pays the taxes and is awarded the property. This timeline varies, but is usually wrapped up fully in one to four weeks, and the property is fully transferred to the winner of the auction.

At that point, they own the house and the subsequent eviction process may begin.

Final Thoughts

If you are unsure of what to do, knowledge is key.

At Elevate To Close, our ethos is elevating your knowledge as a homeowner to understand the processes surrounding your property, whether that means buying, selling, or understanding your options during the property tax delinquency process. Ultimately, you’ll have to decide if you want to restructure your property asset, downsize, relocate, or just sell.  Whatever choice you make should be done with clear knowledge and understanding of your options and timelines. Listings take time to sell and typically about 30 days to close, in a perfect situation. If you’re dealing with an under-market dwelling, it may take much longer. Knowing your timelines to expand your resources accordingly is key to having a successful transaction and a bright path forward.

Call me if you’re interested in discussing your options or need more information regarding any of the above aspects of the Tax Delinquency Process in Lorain County.

At Elevate, we prepare To Close BEFORE listing. You should, too.

Dan Nutt 1-815-527-6537 (Toll free)

Howard Hanna Realtor-Amherst, OH