http://www.taxsalepropertiesonline.com/what-is-the-difference-between-tax-liens-and-tax-sale-properties/ Sun, 10 Jan 2010 05:53:36 +0000 hourly 1 http://wordpress.org/?v=abc http://www.taxsalepropertiesonline.com/what-is-the-difference-between-tax-liens-and-tax-sale-properties/comment-page-1/#comment-11 michael m Thu, 17 Dec 2009 04:42:13 +0000 http://www.taxsalepropertiesonline.com/what-is-the-difference-between-tax-liens-and-tax-sale-properties/#comment-11 Every year, the various taxing districts adopt a budget and submit it to the assessors office. The assessor then divides the total amount needed to meet the accumulated budgets over the total equalized assessed value of non-exempt property located in those taxing districts. The result is your tax bill for the next year. The respective amount of the assessed tax constitutes a lien on each respective parcel of non-exempt property as of the beginning of the next year (1/1). Thus, if in 2006, the taxing districts (rd repair, mosquito abatement, city, county, etc) needed $10 million for 2007, and there were 1000 parcels of non exempt property each with an average value of $100,000 (for a total equalized assessed value of $1,000,000,000), then the average tax bill would be $1,000 based upon a rate of 1%. The assessor would issue the bills in 2007, usually payable in 2 installments of $500. The entire $1,000 would be a lien upon each property until paid in full. If the tax is not paid in full for 2007. collection proceedings will commence. The tax due will draw interest and perhaps penalty. The parcel owner will be notifed with a last chance to pay the taxes in full plus P and I. If this is not done, the property may be sold at a tax foreclosure sale to the highest bidder. Resultantly, a bidder could conceivably acquire title to a $100,000 property for $1,000 plus Pand I. Even after the tax foreclosure sale, the original owner still has a period of time to redeem the property by paying tax, Pand I , plus sales costs, etc. Thus, acquiring title via tax foreclosure is a risky proposition until the period for redemption expires, and even then there may be a lawsuit based on whether the tax was unconstitutional or not, for instance. Hope this helps. Every year, the various taxing districts adopt a budget and submit it to the assessors office. The assessor then divides the total amount needed to meet the accumulated budgets over the total equalized assessed value of non-exempt property located in those taxing districts. The result is your tax bill for the next year. The respective amount of the assessed tax constitutes a lien on each respective parcel of non-exempt property as of the beginning of the next year (1/1).
Thus, if in 2006, the taxing districts (rd repair, mosquito abatement, city, county, etc) needed $10 million for 2007, and there were 1000 parcels of non exempt property each with an average value of $100,000 (for a total equalized assessed value of $1,000,000,000), then the average tax bill would be $1,000 based upon a rate of 1%.
The assessor would issue the bills in 2007, usually payable in 2 installments of $500. The entire $1,000 would be a lien upon each property until paid in full.
If the tax is not paid in full for 2007. collection proceedings will commence. The tax due will draw interest and perhaps penalty. The parcel owner will be notifed with a last chance to pay the taxes in full plus P and I. If this is not done, the property may be sold at a tax foreclosure sale to the highest bidder. Resultantly, a bidder could conceivably acquire title to a $100,000 property for $1,000 plus Pand I.
Even after the tax foreclosure sale, the original owner still has a period of time to redeem the property by paying tax, Pand I , plus sales costs, etc.
Thus, acquiring title via tax foreclosure is a risky proposition until the period for redemption expires, and even then there may be a lawsuit based on whether the tax was unconstitutional or not, for instance.
Hope this helps.

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