Unpaid property taxes do not stay with the county for long.
That is the part that catches people. The bill you are ignoring gets sold to an investor, and the terms get considerably worse once it does.
Clear this at closingHow a Kentucky tax bill becomes somebody else's asset
Property taxes in Kentucky are billed by the sheriff in the fall. If they go unpaid, the bill transfers to the county clerk and becomes a certificate of delinquency, which is a lien against your property.
The county clerk then holds a sale where third party purchasers, usually investment firms, can buy those certificates. Once that happens you are no longer negotiating with a county office that has payment plans and human beings. You are dealing with an investor whose business model is the interest.
The number grows faster than people expect
Interest accrues on the certificate, and the holder can add attorney fees and administrative costs on top. A modest original bill can grow substantially over a couple of years, and it compounds against a house you may not even be living in.
Because it is a lien, it also has to be paid before clear title can transfer. That is not optional and no buyer can work around it. It gets paid at closing or the sale does not happen.
Selling clears it in one transaction
The title company pulls the payoff on every tax lien against the property, the current year bill included, and pays them from the proceeds. You do not need to bring the account current beforehand or negotiate with the certificate holder yourself.
If the taxes plus any mortgage exceed what the house is worth, we will show you that math rather than let you find out at the closing table.
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Question 1 of 5
What people ask about this
How many years can I be behind before something happens?
It varies, but the certificate sale happens annually, so even one unpaid year can put your bill in an investor's hands. The foreclosure risk grows with each additional year.
Can I just pay the oldest year?
Payments are generally applied to the oldest delinquency first, but multiple certificates can be held by different parties. Ask your county clerk for a full statement so you know exactly who holds what.
Do you pay the taxes or do I?
We pay them at closing out of the proceeds. It comes off the top of what the property sells for, so you do not need cash up front.
Often it is more than one thing at once
Clear this at closing.
No cost, no obligation, and nobody shows up at your door unless you ask them to.