What Are My Options After a Tax Sale of My Home?

Question from SOMEDUDE, What Are My Options After a Tax Sale of My Home?

Answer from AI:

If your home was sold at auction due to delinquent property taxes, and you are now being offered surplus funds, you have a few options to consider. It’s important to understand the implications of accepting these funds and the potential for legal action. Here’s a general overview of your situation and the steps you might take:

Understanding Surplus Funds

When a property is sold at a tax auction, the sale price may exceed the amount owed in taxes. The excess amount is known as “surplus funds,” and the original property owner may be entitled to claim these funds.

• Surplus funds are the difference between the sale price and the amount owed in taxes, interest, and fees.
• Claiming these funds typically requires signing a release form, which may include waiving rights to the property and agreeing not to sue the county.

Considerations Before Signing a Release

Before signing any documents, consider the following:

1. Legal Rights: By signing the release, you may be giving up any legal claims you have against the county regarding the sale of your property.
2. Consultation with an Attorney: It is advisable to consult with a legal professional to understand the full implications of signing the release. An attorney can help assess whether you have a viable legal claim against the county.
3. Statute of Limitations: Be aware of any time limits for filing a lawsuit, which vary by state and the nature of the claim.

Potential Legal Claims

If you believe the sale was improper, you might have grounds for a legal claim. Common issues include:

• Failure to provide proper notice of the tax sale.
• Errors in the calculation of taxes owed.
• Violation of any tax exemptions you were entitled to, such as a disability exemption.

Steps to Take

1. Review the Release Form: Carefully read the document you are asked to sign. Note any clauses that waive your rights or release the county from liability.

2. Consult an Attorney: Given the complexity of tax sales and potential legal claims, consulting with an attorney is crucial. They can provide personalized advice based on your specific circumstances.

3. Research State Laws: Each state has different laws regarding tax sales and surplus funds. Understanding these laws can help you make an informed decision. You can find more information on state-specific laws through resources like [Nolo’s Guide to Property Tax Sales](https://www.nolo.com/legal-encyclopedia/property-tax-sales.html).

4. Consider Financial Implications: Weigh the certainty of receiving surplus funds against the uncertainty and potential costs of pursuing legal action.

Conclusion

Deciding whether to accept surplus funds or pursue legal action is a significant decision that should not be taken lightly. Given the potential legal complexities and the impact on your rights, it is highly recommended to seek legal advice. An attorney can help you evaluate the strength of any potential claims and guide you through the process. For more information on property tax laws and your rights, you can visit the [Internal Revenue Service’s Property Tax Information](https://www.irs.gov/taxtopics/tc503) page.