How to Find Properties With Back Taxes

Property back taxes refer to overdue property taxes that have not been paid by their designated deadline. These unpaid taxes can accumulate over time, often with added penalties and interest, making the total amount owed increase significantly. Finding properties associated with back taxes can be useful for various reasons, including real estate investment strategies or understanding public financial records. This article outlines methods for locating such properties.

Understanding Property Tax Delinquency

Property taxes are local taxes assessed on real estate by county or municipal governments to fund public services like schools, police, and fire protection. Property tax statements are typically mailed annually, with specific due dates. If these taxes are not paid by the due date, they become “delinquent” and incur penalties and interest.

When property taxes become delinquent, the local government places a tax lien on the property. This tax lien takes priority over most other claims on the property, meaning it would be paid first if the property were sold. Continued non-payment can lead to enforcement actions, such as the sale of the tax lien or the property itself through a tax deed sale or foreclosure process. Properties can accumulate back taxes due to various reasons, including financial hardship of the owner or confusion over payment deadlines.

Official Government Sources

The primary sources for identifying properties with back taxes are local government offices. These entities are responsible for assessing, collecting, and recording property tax information. Users should typically focus their search on the county level, as practices can vary significantly.

The county tax assessor’s office values properties and maintains current ownership information. While they primarily handle property valuation, their records may include information on tax accounts and sometimes indicate delinquent status. Many assessor’s offices offer online search tools where users can look up properties by address, owner name, or parcel number to review tax statements and history.

The county treasurer’s office or tax collector’s office bills and collects property taxes. These offices maintain detailed records of payments, outstanding balances, and delinquent accounts. Many county treasurer or tax collector websites provide online portals where the public can search for properties and view their tax status, including any delinquent amounts. Some offices may also publish lists of properties with delinquent taxes or offer delinquent tax rolls as data files.

The county recorder’s office records legal documents related to real property, including deeds, mortgages, and liens. Property tax liens, like other liens, are publicly recorded documents. Searching these public records, often available online, can reveal recorded tax liens against a property. Users can search by property address or owner name, and while the search is often free, obtaining official copies may involve a small fee.

Specialized Online Platforms and Services

Beyond direct government websites, specialized online platforms aggregate data on properties with back taxes. These platforms offer user-friendly interfaces and broader search capabilities, making the identification process more efficient. They compile information from public records, including tax delinquency data.

Private online databases provide access to property records, including details on liens and ownership. Some websites allow searching for liens by property address and can provide reports for a fee. These services offer a convenient and fast option, delivering reports within minutes. They may also offer alerts for tax-delinquent properties, providing ongoing updates.

Real estate investment platforms and specialized auction sites list properties subject to tax sales or outstanding tax liens. These sites often host online auctions for delinquent tax liens, tax deeds, and other municipal property. They provide detailed information about the properties, making them a resource for identifying opportunities. Some state departments of revenue also offer online search tools for tax-delinquent properties.

While these platforms offer convenience, it is important to understand their business model, as some may charge subscription fees or per-report charges. These services differ from official government sources by providing aggregated data and enhancing the search experience. They can be a valuable supplement to direct government searches, particularly for those identifying multiple properties across different jurisdictions.

Initial Property Due Diligence

After identifying a property with potential back taxes, conducting thorough due diligence is important to understand its complete financial and physical status. This initial research focuses on verifying information and uncovering complexities before considering any further action.

Verifying the current ownership of the property is a primary step. This can be done by reviewing recorded deeds at the county recorder’s office, which document property transactions and ownership chains. Ensuring the identified owner matches the public records helps confirm the accuracy of the initial findings. Many counties offer online access to these land records, allowing searches by owner name or property details.

It is important to check for additional liens or encumbrances beyond the property tax lien. Properties can have various types of liens, including mortgages or judgment liens. These are discovered through searches at the county recorder’s office, where most liens are publicly recorded. A comprehensive title search, which can be performed by a title company for a fee, provides a detailed history of the property’s ownership and all recorded encumbrances.

Understanding the property’s physical characteristics and market value is important. While direct access to the property may not be possible, public records often contain details about the property’s size, specifications, and condition reports. Satellite imagery and online mapping tools provide visual insights into the property’s current state and surrounding area. Researching comparable sales helps estimate the property’s market value.