City and state tax laws vary, so it is important to contact the tax collector for your township or county. Typically, when property taxes are not paid when due, they are considered delinquent; a penalty and/or interest will accrue on the unpaid taxes. How long your taxes can remain delinquent varies by state; if not paid by the end of the specified time period, the property is sold at a public auction. In some states, a tax lien may be sold to investors; the purchaser of the tax lien certificate can institute foreclosure proceedings and acquire legal title to your property if the tax and penalties/interest are not paid within a specified time.
Some municipalities or states may offer a deferment program for those who are facing financial hardship. This is a low-interest loan program available to qualified individuals (a set percent equity in their home) that is designed to assist homeowners and offer the necessary help paying property taxes; in these states, one can defer taxes as long as one owns the home, and if the home is sold, the outstanding tax bill becomes due. Your municipal or county tax collection office can explain in more detail the options available to you. It is also important to discuss the problem with your lender if you have a mortgage on the property.
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