2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-1902 - Tax sale certificate; tax deed; right of holder to foreclosure; action in district court; limitation period.

77-1902.
Tax sale certificate; tax deed; right of holder to foreclosure; action in district court; limitation period.
When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917. Such action shall only be brought within nine months after the expiration of three years from the date of sale of any real estate for taxes or special assessments.
Source
Laws 1943, c. 176, § 2, p. 615;
R.S.1943, § 77-1902;
Laws 1975, LB 78, § 2;
Laws 1987, LB 215, § 3;
Laws 1996, LB 1321, § 4;
Laws 2011, LB423, § 2;
Laws 2013, LB341, § 18.
Annotations
1. Time limits
2. Miscellaneous
1. Time limits
A foreclosure action brought under this section must be brought within 6 months after the expiration of 3 years from the date of sale of any real estate for taxes. County of Seward v. Andelt, 251 Neb. 713, 559 N.W.2d 465 (1997).
Under this section, "time for redemption" is the three years immediately following a delinquent tax sale, and an action to foreclose a tax lien can only be brought within ninety days immediately after expiration of such time for redemption. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985), is overruled. County of Lancaster v. Maser, 224 Neb. 566, 400 N.W.2d 238 (1987).
Foreclosure of a tax lien must be brought within ninety days after the expiration of the right to redeem. In accordance with section 77-1837, such redemption right expires three years plus ninety days from the date of the original sale. Bish v. Fletcher, 219 Neb. 863, 366 N.W.2d 778 (1985).
2. Miscellaneous
Judicial foreclosure requires the holder of a tax certificate to foreclose on the lien for taxes in the district court of the county where the property is located. HBI, L.L.C. v. Barnette, 305 Neb. 457, 941 N.W.2d 158 (2020).
Where the successful bidder purchased a tax sale certificate by bidding down to a 1-percent undivided interest of property, its lien to be judicially foreclosed was limited to 1 percent of the property. Adair Asset Mgmt. v. Terry's Legacy, 293 Neb. 32, 875 N.W.2d 421 (2016).
This section requires an individual to act pursuant to section 77-1917 in order to redeem property during the pendency of a foreclosure action. Neun v. Ewing, 290 Neb. 963, 863 N.W.2d 187 (2015).
Authority to proceed under equity powers is limited by remaining provisions of tax foreclosure act. Madison County v. School Dist. No. 2, 148 Neb. 218, 27 N.W.2d 172 (1947).
In foreclosure under this section, court may refuse confirmation of sale where increased bid has been made after sale and before confirmation. County of Gage v. Beatrice Neb. Water Co., 147 Neb. 236, 22 N.W.2d 696 (1946).
This section is not the only avenue by which title to property sold at a tax sale can be obtained free and clear of previous liens. Knosp v. Shafer Properties, 19 Neb. App. 809, 820 N.W.2d 68 (2012).
A delinquent taxpayer may redeem a tax sale certificate after a foreclosure action has been filed. KLH Retirement Planning v. Cejka, 3 Neb. App. 687, 530 N.W.2d 279 (1995).