The Ultimate Guide to Saving Your Home (or Equity) from Tax Delinquency

Falling behind on property taxes is incredibly stressful. You may be receiving threatening letters from the county or hearing confusing terms like “tax lien certificate” or “redemption period.”

If you are reading this, you are likely looking for answers. You are not alone, and you do have options.

This guide is designed to cut through the confusion and give you a clear, step-by-step roadmap for handling a tax delinquent property—whether you want to keep it, pay off the debt, or sell it to save your equity before it’s too late.

What Exactly Does “Tax Delinquent” Mean?

In simple terms, “tax delinquent” means the property taxes assessed by your local county or municipality have not been paid by the due date.

Local governments rely on these taxes to fund schools, police, and roads. When they aren’t paid, the county has the legal right to recoup that money. Depending on where you live (Virginia, Maryland, DC, or Florida), they do this in one of two main ways:

  • Tax Lien Sale: The county sells the debt (lien) to an investor. The investor pays your taxes, and you now owe them the money plus high interest. If you don’t pay them back, they can eventually foreclose.
  • Tax Deed Sale: The county seizes the property itself and sells the entire house at a public auction to the highest bidder to pay off the taxes.

The 4 Stages of the Tax Delinquency Process

While every state has its own specific timeline, the general process usually follows these steps:

  1. Notice of Delinquency: The county sends a bill with added penalties and interest.
  2. Public Publication: The county may publish a list of delinquent properties in the local newspaper or online (a “Tax Sale List”).
  3. The Auction (Tax Sale): The county auctions off either the lien or the deed to an investor.
  4. Redemption Period: This is your final safety net. In many states, even after a tax sale, you have a specific window of time (6 months to 2+ years) to pay back the taxes plus interest to keep your home.

What Are Your Options as a Homeowner?

If you are behind on taxes, do not ignore the notices. The problem will not go away, and the interest fees will only grow. Here are the three primary paths you can take:

1. The Installment Plan (Keep the House) Most counties want you to keep your home. If you have income but just fell behind, go to the County Treasurer’s office immediately. They often allow you to set up a monthly payment plan to catch up on back taxes over 12–36 months.

2. Challenge the Assessment If you believe your taxes are too high because the county says your house is worth more than it really is, you can file an appeal. This won’t erase the past debt immediately, but it can lower future bills.

3. Sell the Property (Save Your Equity) If the tax bill is too high to pay off and you can’t afford the monthly payments, selling the house is often the smartest financial move. By selling before the county forecloses, you can use the sale proceeds to pay off the taxes and walk away with the remaining cash (your equity).

Can You Sell a House with Back Taxes?

Yes. This is a common misconception. You can sell a house even if you are years behind on taxes or if a tax lien has already been sold to an investor.

When you sell the house, the “back taxes” are simply deducted from the final sale price at closing. The title company handles the paperwork, paying the county (or the tax lien holder) what they are owed, and giving you the rest of the profit.

This is often the best option for homeowners who want to:

  • Avoid a foreclosure on their credit report.
  • Stop the accumulation of 18%+ interest penalties.
  • Walk away with cash instead of losing the house for nothing at an auction.

Need Local Help? Select Your Region

Property tax laws, redemption periods, and auction dates vary significantly by county. We have built dedicated Resource Hubs for the areas we serve to help you find local treasurer contact info and state-specific timelines.

(Internal Linking Strategy: These should link to the new county pages you build)

How Consistent Homebuyers Can Help

We aren’t just here to buy your house; we are here to help you understand your rights. We have worked with dozens of families facing tax delinquency across DC, MD, VA, and FL.

If you decide that selling is your best option, we can:

  • Pay The Taxes For You: We handle all the coordination with the county or tax lien holders to pay off the debt at closing.
  • Buy “As-Is”: If you haven’t had money for taxes, you likely haven’t had money for repairs. We buy the house exactly as it sits—no repairs or cleaning needed.
  • Close Before the Auction: If your tax sale date is approaching, we can often close in as little as 7 days to beat the deadline and save your equity.

Need a Hand with the Logistics?

Dealing with the tax office is bureaucratic and confusing. If you are struggling to find out exactly how much you owe, or if you want to know how much cash you could walk away with if you sold today, we are here to support you.

Disclaimer: Consistent Homebuyers is a real estate investment firm, not a law firm or financial institution. We do not provide legal or tax advice. We recommend all clients consult with their own legal counsel or tax professional regarding their specific situation.

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