What Happens When Property Taxes Become Delinquent in Nevada?

What Happens When Property Taxes Become Delinquent in Nevada?

If you have received a letter in the mail from the county mentioning that you are behind on your property taxes, just like foreclosure, it is no time to bury your head and hope that the problem will go away. In fact, the longer it goes on, the worse it gets. In this article, we’ll cover what are delinquent property taxes, and what happens when your property taxes become delinquent in Nevada. Let’s dive in.

What Are Delinquent Property Taxes?

Delinquent property taxes means that just that, you’re behind and you need to pay them. If you don’t, you will be subject to the county auctioning your property to someone else for the delinquent amount. Generally, when you purchase a home, most of the time it will be financed through a bank, the property taxes are paid through the escrow account or it is included in your monthly mortgage payment. But once the mortgage is paid off or you have an alternative funding source, such as a private lender, that payment is up to you to make to the county, otherwise, the county will put a tax lien on the property and could auction it off.

The Effects of Delinquency

As mentioned once you pay off your house or property, it’s your responsibility to pay them to the county otherwise you run the risk of your property taxes becoming delinquent. The county that your property is located in will mail you the yearly tax amount around July and the payments are due quarterly or every 3 months. If you don’t pay them the county will tack on a fee of 4 percent from the first installment being delinquent if not made in the 10 day grace period, all the way to 7% after the 4th installment is missed. And as the months go by the interest continues to be added to the delinquent amount owed. With that, it is best to pay the property taxes as soon as possible to avoid accruing interest and late charges.

Getting Further Behind

Just like the mortgage company can foreclosure on your property for not paying, the same can happen if your property taxes become delinquent. However, the county will file a tax lien on your property after the taxes have been delinquent. The county will send you a notice in the mail stating that your property taxes are delinquent after the first year of taxes missed. They will also advertise the property in the local newspaper for roughly about 30 days. The property owner that is delinquent will have 2 years from the date the lien is filed to redeem the property by payment of all taxes, delinquencies, and costs. And if the taxes are not paid, then a tax deed will be taken, transferring delinquent property to the county treasurer as the trustee. And then after that, they may auction the property off to the highest bidder, resulting in you being possibly evicted from the home.

What Can You Do?

If you aren’t at the auction phase, there is still something you can do, but you’ll need to act quickly when your property taxes become delinquent. You can reach out to the county treasurer and talk with them to see what your options are. Most of the time, they will work with you and give you some suggestions to remedy the situation. They may offer a re-payment plan so your property won’t be auctioned off. An alternative is that you file for bankruptcy. This halts the county from seizing the property and auctioning it off, but you will still have to come up with a re-payment plan with your bankruptcy attorney. Another option is you sell the property. When you sell the property, the taxes will be repaid to the county and you won’t have to worry about the county auctioning off your home. Assuming if you list the property on the MLS with an agent; when the property sells, your profits will probably dwindle to pay the taxes, on top of the 6% commissions. And if the home has some repairs or renovations that need to be done, your home could sit on the market even longer… and the home could be auctioned off before it is even sold.

Envy Property Solutions, LLC

If you are not sure if selling is the right option or maybe it is, you can always reach out to John and his team at Envy Property Solutions, LLC. We buy homes that are behind in taxes and some that aren’t in the best condition. So if selling is for you, here at Envy Property Solutions, LLC we don’t charge any hidden fees or commissions, and we’ll even pay off the delinquent taxes so you won’t have to worry about it eating into your profits. Of course, we can close as quickly as 7 days or on your time schedule. There is absolutely zero obligation to accept our all-cash offer, and you won’t be pressured into anything or taken advantage of when working with John and his team at Envy Property Solutions, LLC. We want you to feel good about working with us long after the sale. If you’re ready to sell or just looking for some options, Contact Envy Property Solutions, LLC today at (775) 391-5236 to learn more.

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