The state of tax delinquent properties is an issue that affects many people throughout the nation. Tax delinquency occurs when a piece of real estate hasn’t been property taxes for two or more years, and the responsibility of resolving this issue falls on local governments. The problem is twofold: it’s a waste of resources when taxpayers fail to pay their taxes and it increases the cost of doing business for local municipalities. Additionally, the neglect of a property due to the owner not paying taxes can cause it to decline in value and become an eyesore in the community.

The process for addressing tax delinquent properties varies from state to state, but in most cases, the local government initiates a tax foreclosure procedure and tries to recoup the overdue taxes. This can involve sending out letters of notice to the homeowner or foreclosing on the property by holding an auction to sell it and pay off the taxes. The local government can then take ownership of the property, maintain and occupy it, or sell it to the highest bidder.

For municipalities, tax delinquent properties can become an ongoing expense. It costs money to send out notices and put the property up for sale at auction, and many local governments find that the costs outweigh any potential benefits of staying involved in the process. In some cases, the foreclosure process can be lengthy, and municipalities may choose to forgo it trip and let the property stay in its current state.

However, if a local government is interested in attempting to recover taxes, there are options. Some cities have created land banks that acquire properties through the foreclosure process and turn them over to redevelopment authorities. These authorities can then arrange for improvements to be made, lease the property to a tenant, or resell it to a new owner. This helps to reduce the burden on the city, provides more affordable housing, and puts money back into the local economy.

Ultimately, tax delinquent properties are an issue that affects many local governments, but it’s possible to take action to recover taxes, address the growing problem, and put the properties back onto the marketplace. By creating land banks and working with redevelopment authorities, many cities are proving that it’s possible to turn a negative into a positive.