First, following a short grace period after the payment due date (e.g., 10 to 15 days), late fees generally start to accrue. Some counties/municipalities will take partial payment, but additional fees and interest will be added.
If property taxes still remain unpaid, the county or municipality may place a lien against the property. Liens must ultimately be repaid from the proceeds of the sale of the property and include delinquent taxes, penalties, and other fees. Liens appear on a delinquent homeowner's credit report and lower the homeowner's credit score.
The worst possible outcome resulting from unpaid property taxes is a forced sale or foreclosure of the home. When you sell or refinance your home, or a lender forecloses on it, the government will stand in line to get paid out of the proceeds.
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