When a homeowner fails to pay property taxes on a given parcel of land or home, the taxes accrue (with accrued interest) and must be paid to convey “clear title” in the event of a sale. If the amount is substantial enough, or the time frame significant enough the government may place a lien against the property, or in the worst-case scenario… seize the property outright from an owner.
There are many reasons someone might fall behind on their tax payments:
Missed payments
Unexpected events
Health issues
Job loss
Divorce
Upside down or negative equity
In general, when you don’t pay your property tax by the date your tax bill is due, you can start to accrue a tax penalty. This can amount to as much as a 6% penalty and 1% interest on the past due amount. The penalty and interest will continue monthly, amounting to a substantial tax collector fee.