Some Missouri homeowners who are delinquent on property taxes get one year to redeem the home after a tax sale. But the time available to redeem the property might be shorter.
Bottom of Form
If you don’t pay your property taxes in Missouri, state law allows the county treasurer to collect the delinquent amount by selling the property in a tax sale. After a tax sale happens, if you don’t catch up the overdue amount, the purchaser of the tax lien can eventually get ownership of your home.
Fortunately, you’ll have the opportunity to save your home by redeeming it—that is, getting current on the past-due taxes, plus interest and various costs. But if you miss the deadline to redeem, you lose your chance to get your home back. If you have questions call TSW Properties at 314-226-2779 today and ask for Terry.
How Missouri Tax Sales Work
In Missouri, a tax sale will typically take place if you don’t pay the property taxes on your home for three years. But under state law, it could take place sooner, in as little as a year. At the sale the winning bidder on your property gets a certificate of purchase. If you don’t redeem the property by paying off the tax debt back to the state, the winning bidder from the auction can eventually get a deed (title) to your home.
Redemption Period After a Tax Sale in Missouri
Again, if you don’t redeem the property within the year redemption period by paying off the tax debt, the purchaser from the auction can get a deed (title) to your home. (Mo. Ann. Stat. § 140.405, § 140.420).
General Right to Redeem
In Missouri, you can ordinarily redeem your home within one year after the tax sale and up until the purchaser gets the deed to your home—if the home sells on the collector’s first or second sale attempt. (Mo. Ann. Stat. § 140.340, § 140.250).
Redemption Period If the Home Doesn’t Sell at a First or Second Tax Sale
If the home doesn’t sell at a first or second tax sale, then the collector will attempt to sell it at a third tax sale. When a home sells at a third tax sale, you get 90 days to redeem the home. (Mo. Ann. Stat. § 140.250).
No Right to Redeem After a Subsequent Sale
If no one buys the property at the first, second, or third tax sale, but it does sell at a subsequent offering, you don’t get a redemption period. (Mo. Ann. Stat. § 140.250).
Some Homeowners Get More Time to Redeem
Minors, people who are incapacitated, and disabled persons may redeem within five years of the date of the last payment of taxes encumbering the real estate by the minor, incapacitated or disabled person, the party’s predecessors in interest, or any representative of such person. (Mo. Ann. Stat. § 140.350).
Notice of Your Right to Redeem
After the sale, you’ll receive notice about your right to redeem.
If the Home Sells at a First or Second Tax Sale
At least 90 days before the date when the purchaser is authorized to acquire the deed, the purchaser must send you a notice by first class and certified mail about your right to redeem. (Mo. Ann. Stat. § 140.405).
If the Home Sells at a Third Sale
If the property sells at a third sale, the purchaser must send a redemption notice within 45 days of the sale. The 90-day redemption period begins when the purchaser mails this notice. (Mo. Ann. Stat. § 140.405).
How Much It Costs to Redeem
To redeem your home after the sale, you generally have to pay the following amounts to the county collector:
- the amount of the delinquent taxes
- the costs of the sale
- interest at a rate not to exceed 10% per year (but not on the amount the purchaser paid that exceeds the taxes and costs)
- all subsequent taxes that the purchaser paid plus interest, at the rate of 8% per year, and
- certain additional costs. (Mo. Ann. Stat. § 140.340).
What to do if you have equity on your home and don’t want to lose your equity?
If you need to sell before the time runs out you need a cash sale.
Call 314-226-2779 before time runs out.