Tax auctions leave owners wiggle room

Q: We lost a piece of property due to back taxes. The property was in the names of my husband, his two sisters and his brother. None of them would help us pay the taxes, so they were not paid. I received a letter that the property had been sold, but I could pay the taxes and redeem the property. That is what I want to do, but only in my name and my husband’s name. Can this be done?

A: It sounds like you may not understand the process. At this point, your husband and his siblings still own the property, even though there has been a tax sale.

In places with real-estate taxes, if homeowners fail to pay, at some point — say a year or so — the government will sell the delinquent taxes in an auction.

If the tax bills remain unpaid, the auction winners can come to own the property for the amount paid at the tax sale. Not too long ago in San Francisco, two investors picked up a small parcel on one of the most expensive blocks for less than $1,000.

If the homeowners redeem the taxes by paying them, then the investors get their money back, plus interest.

After a tax sale, officials usually will send another notice to the homeowners, giving them a chance to pay what is owed. If they do, the owners keep the property.

If you redeem the taxes, your husband and his siblings will remain the owners. But you could offer to pay the taxes if your husband and his siblings convey title of the property to you.