Overview
In early February, the City starts its yearly tax sale process by sending a final bill and legal notice to the property owner at the address we have on file. This notice shows all the unpaid city taxes and charges up to the end of February. If these unpaid amounts are not paid, the City may add more penalty or interest charges for each unpaid item.
Tax Sale Timeline
March: The City publishes the complete list of properties still eligible for tax sale in two newspapers of general circulation.
Early April: The City mails a second tax sale notice to the same property address during the first week of April. The second notice includes amounts that are due until April 30. April 30 is also the last day to pay outstanding taxes and charges owed to the City to avoid tax sale.
Mid-May: The annual tax sale is normally held during the third week in May.
Late May: Redemption can begin. With redemption, the owner or a party like a mortgage holder can pay the bidder interest, fees, and costs. If a property isn’t redeemed by July 1, you must also pay the new fiscal year’s real property taxes to redeem it.
Avoiding Tax Sale: What Can I Do to Reduce the Risk of a Tax Sale?
Tips To Avoid Tax Sale
Download our guide on Key Tips to Avoid Tax Sale.
We have also made Key Tips to Avoid Tax Sale available in Arabic, Chinese, French, Korean, and Spanish language translations.
The Departments of Finance and Housing and Community Development also manage the Tax Sale Deferral Program. It lets people protect their property from being sold in a tax sale for a year. This program doesn’t erase unpaid bills. If you still owe money, your property may go to tax sale next year.
Redemption Process
After the successful bidder pays all taxes and charges for a property, the owner may only redeem it by reimbursing the bidder. The earlier the owner redeems the property, the lower the extra charges from the bidder.
Four months after the tax sale, other fees and costs may be added to the redemption amount.
Six months after the tax sale, the successful bidder may file a lawsuit to foreclose the right of redemption on non-owner occupied residential properties. However, if the property is in need of substantial repair, the bidder may file a lawsuit to foreclose sooner.
More fees and costs could apply even months after the tax sale on owner occupied properties.
The successful bidder may file a lawsuit to foreclose the right of redemption nine months after the tax sale on owner-occupied properties. State law defines fees and most costs, which the bidder owes, not the City. The City has no power to waive or reduce the fees and costs set by State law.
It is important to note that the earlier a property is redeemed, the smaller the amount to redeem will be. Delay causes the costs to increase significantly.