tax lien

[Luis Acevedo]

If you locate a property that owes back taxes of $20K can you negotiate with the county and pay less to take over the property or do you have to pay $20K ?

[Jerry K.]

In general, you have to pay the full taxes plus interest. However there are sometimes special situations.

The first tax deed I ever bought was on a vacant residential parcel in a lake community. The lake was built in the late 1960's and they started selling lots in 1970. Many people bought lots way off the lake for $10,000 (1970 dollars!) That was expensive.

Then in 1973 the economy went into the toilet. People never built and nobody was buying lots for a weekend place that was not in a typical resort area. Owners stopped paying the taxes and nobody bought the liens.

After 10 years, the county stopped selling the liens and properties were in limbo. Then in 1999 the lake association teamed up with the county to get the properties into the hands of new owners so the county could get the taxes and the association could get new owners who would pay annual lake association fees.

They had a deed auction and each property started at $250. No lots were on the lake, but some had views of the lake. You had to be a property owner in order to use the lake and the pool and other facilities.

I picked up a lot for $800 that originally, in the early 70's, had sold for $10k. I did not have to pay any back taxes or interest and the title was clear.

I doubt a county will negotiate on recent unpaid taxes. But if they have long (talking several years) overdue taxes on a tract that they would like to see developed, you may be able to negotiate.