Cleveland Back Taxes

[Dale Nesmith]

I was looking at listings for Cleveland area. It seems many ads mention that the property has back taxes owed. You would be responsible for any back taxes owed if you buy the property.

Some ads mention you can set up a 24 month repayment plan

Even if no taxes are owed, the ad mentions it, so you know.

Why are so many owners behind in taxes there?? Are the taxes excessively high?

Why don’t the current owners setup the 24 repayment plan and keep their property?

What kind of fees does the City of Cleveland charge landlords?

[Don Petrasek]

@Dale Nesmith Where are you seeing these ads? Tax delinquencies in Cuyahoga County are sold off by the county to a third party. Yes you can set up a payment plan with the third party - their business model is to set up payment streams (with an 18% interest rate if I'm not mistaken which will negatively impact your ROI) secured by delinquent tax certificates (that they can foreclose in if payments aren't received). But there's no guarantee that they'll set up a plan for every property (nothing says they have to as far as I know) and the county has the right to keep any property out of the delinquent tax certificate sales to third parties....and foreclose on their own if they choose to. Or the third party could choose to foreclose immediately.

You should be closing on any property you buy through a legitimate title/escrow company.  Having all liens/assessments paid in full at closing and the property being eligible for title insurance is included in every standard purchase agreement that I've ever seen.  

Reach out to any title company in the area, they can explain further....or a real estate attorney before you consider buying on the terms you describe.  Nothing wrong with buying properties that are behind on taxes, have liens or other issues that effect title.....just as long as you have them covered off at closing.