Property Tax Delinquency in Oklahoma | How to Avoid the Tax Resale Auction

How to Avoid the Oklahoma Property Tax Resale | Avoiding the June Auction

Home located in Oklahoma City that was going up for resale but was saved by Free Home Offer. Previous owner still lives in the home today! Call us when you’re ready at 405-362-7355.

When you fail to pay your real estate taxes at the county treasurer within a certain timeline. An Oklahoma Property Tax Resale auction occurs when allowing three years of unpaid taxes for any given year conducted by the local county treasurer. Essential services for the public such as county workers, infrastructure, libraries, school and safety are all funded by your property taxes. When property owners forget to pay their property taxes, they become delinquent on their obligations.

Sadly, people become delinquent on their real estate taxes for multiple reasons. Some of those reasons include low fixed income, other financial hardships, tax bills being mailed to the wrong address, deceased owners or contesting your property valuation while not paying your tax. When property taxes remain unpaid, local municipal governments may take the necessary steps to recover the owed funds.

Losing your house or parcel to a tax delinquency resale auction typically involves these steps:

1. Tax bill issuance: The local tax authority mails the tax bill to the owner of record for the property. The address comes from the county assessors mailing address. The tax notice specifies the amount due, type of tax and the due date.
2. Delinquency and Notice: If the owner of the property doesn’t pay the outstanding real estate taxes in full by the specified due date, then the taxes can turn into a property tax lien. Afterword, the local county treasurer may impose additional fees like interest penalties on the outstanding balances. The treasurer sends a notice of default or delinquency to the record owner via publication and direct mail. The notice informs all owners of outstanding taxes and the potential penalties for nonpayment. Penalties for nonpayment includes interest and tax liens and eventually the sale of the property.
3. Tax lien: If the property owner fails pay the taxes on time the county treasurer will place a tax lien on the legal description and parcel. A tax lien is a legal rightful claim on the property. The lien gives the county the authority to collect the unpaid delinquent taxes and any other fines. Other fines include interest, and penalties. The liens will encumber good title to the property and may also prevent the property owner from refinancing or selling their property.
4. Tax delinquency resale auction: The county is required to give the owners legal notice that their house is being auctioned off due to outstanding taxes. Interest and penalties are added if the property owner fails to pay. At which point, the county may continue with the process of selling the property at a tax delinquency resale auction. The auctions predetermined date and time is published in a local paper. The property will sell to the highest bidder. Cash on account is a requirement at the auction. In addition, cash is acceptable.
5. Redemption period: In many jurisdictions, there is a right of redemption period during which the property owner can still pay the outstanding taxes, interest, and penalties to remove the tax lien and avoid the sale of the property. The redemption period varies by jurisdiction. In Oklahoma, after the judge signs the deed the highest bidder is the new owner. This typically happens within 24 hours of the resale.
6. Loss of property: Once the commissioner signs the new deed, the property owner loses ownership of the property. Any proceeds from the sale are to pay for the outstanding county debts first. These debts include taxes, interest, and penalties. Once inquired, the former property owner has rightful ownership to any excess funds.

It is vital for all property owners to be aware of their property tax obligations. Knowing your tax status will help you avoid delinquency and the resale auction. Losing a property to the county resale auction can have major financial and emotional consequences.

We highly encourage you to consult a professional if you cannot afford to pay off your back property taxes. There are many options Free Home Offer can help assist you with if you are trying at all costs to avoid this scenario:

• Sell your house for a fair cash offer on your timeline and not the counties
• Allow Free Home Offer to pay off all your property taxes – 100%
• Get a new roof or hot water tank! Lets fix those immediate issues at hand.
• Leaseback – stay in your home the rest of your life