Guide · Tax liens and tax deeds

Tax lien and tax deed sales: losing a house over property taxes

You can lose a house with no mortgage at all, over unpaid property tax. States do it in two different ways, and the difference changes how much time you have.

Your state decides the deadlines. See them calculated from your own dates: Arizona · California · Florida · Georgia · Illinois · Indiana · Maryland · Massachusetts · Michigan · New Jersey · New York · North Carolina · Ohio · Pennsylvania · Tennessee · Texas · Virginia · Washington · all states

Tax lien states

The county sells a lien certificate on your unpaid taxes to an investor. The investor pays the tax and earns interest, and you still own and live in the home. If you do not redeem by paying the taxes, interest and costs, the certificate holder can eventually ask for a deed or sue to foreclose. Arizona, for example, waits three years after the lien sale before the holder can sue, and you can redeem until judgment.

Tax deed states

The county or a court sells the property itself. Many of these states give a redemption period after the sale; Texas, for example, gives two years on a homestead. Others give very little time. The notices matter more here, because the sale can be final quickly.

The equity above the tax debt is yours

In Tyler v. Hennepin County (2023) the U.S. Supreme Court held that a government that takes a home for unpaid tax and keeps value above the debt violates the Constitution. Many states have since changed their laws to return surplus. If you had real equity and a small tax bill, claim the surplus and get advice quickly.

What protects you

Call the county treasurer or tax collector before the sale and ask for a payment plan and an exact redemption figure in writing. Many states offer exemptions or deferrals for seniors, veterans, people with disabilities, or low incomes that can lower the bill going forward.

Common questions

What is the difference between a tax lien and a tax deed sale?

At a lien sale an investor buys the right to collect your tax debt with interest, and you still own the home. At a deed sale the property itself is sold.

Can I get my house back after a tax sale?

Often, if your state has a redemption period and you pay the taxes, interest and costs before it ends. Your state page shows the deadline.

Does my mortgage lender pay the taxes?

If you have an escrow account, yes. If not, you are responsible, and many lenders will pay them and add the cost to your loan to protect their lien.

You do not have to figure this out alone: a HUD-approved housing counselor is free on 1-800-569-4287. This page is general information, not legal advice.