If you're behind on property taxes, you've probably been losing sleep. Maybe you got a notice from the county. Maybe you're hoping it'll just go away. Maybe you're not even sure how bad it really is. Whatever brought you here, let's talk about what's actually happening and what you can do about it.
We're going to break this down honestly. No scare tactics, no legal jargon that only lawyers understand. Just what you need to know to make a good decision.
Why this feels less urgent than it is
Tax problems don't come with dramatic court dates. There's no big envelope in the mail. It's a slow-motion problem that suddenly becomes an emergency. The people who lose their homes to tax sales are almost always the ones who thought they had more time than they did.
How property tax problems actually work
Property taxes are a big deal because they're a lien against the property itself, not just against you personally. That means the county can eventually take the house to collect what's owed, even if you have a mortgage on it.
Here's the general timeline, though details vary by county and state:
You miss a payment
Interest and penalties start. Colorado: 1% per month. Nebraska: 14% annual, which adds up fast.
Tax lien or certificate sale
After about a year, the county sells the tax lien to a private investor. Now you owe the investor, plus interest and fees.
Redemption period
You still have time to pay off the debt and keep the house. Colorado: three years. Nebraska: three years after the tax sale.
Tax deed
If you don't redeem in time, the investor gets a tax deed. Ownership transfers to them. You lose the house and all your equity in it.
Why this is more urgent than it feels
Tax situations are especially dangerous because most people don't take them seriously until it's almost too late. A tax lien doesn't come with foreclosure paperwork. There's no dramatic court date circled on your calendar. It's a slow-motion problem that suddenly becomes an emergency.
The other reason it's urgent: interest and fees stack up brutally. What might start as a $2,000 tax bill can grow to $8,000 or more within a few years once penalties, interest, and legal fees compound.
Your five options
Option 1: Pay it off
The most obvious solution. If you can come up with the money to pay the delinquent taxes plus penalties and interest, you're done. Everything resets.
When this works: The amount is manageable and you have access to funds (savings, family help, a personal loan).
When it doesn't: You're already stretched thin, or the amount has grown to more than you can reasonably borrow.
Option 2: Payment plan with the county or tax lien holder
Many counties will work with you on a payment plan for delinquent taxes. If a tax lien has already been sold, some investors will also negotiate. It doesn't hurt to ask.
The reality: Payment plans usually require you to stay current on future taxes while paying off the old ones. If your budget can't handle that, you're just delaying the inevitable.
Option 3: Refinance the mortgage to include tax debt
If you have equity and decent credit, you might refinance your mortgage and use the cash-out to pay off the tax debt. This wraps everything into one manageable payment.
The catch: This requires enough equity to qualify, decent enough credit for underwriting, and the willingness to take on a new 30-year mortgage. It's not usually the best fit if you're already stressed financially.
Option 4: Sell the house
If your house has more value than what you owe (mortgage plus tax debt combined), selling it lets you settle everything and walk away with cash in your pocket. The delinquent taxes get paid at closing from the sale proceeds.
There are two paths for selling:
Traditional listing with a realtor
Works if you have time (usually 60-120 days start to finish) and your house is presentable enough to show. You'll pay agent commissions and closing costs, but you may net more if the market cooperates.
The risk: while your house is on the market, penalties and interest keep piling up. If the sale takes longer than expected, that erodes your net.
Cash sale to a direct buyer
Works when you need this over with. Close in 2-4 weeks. No repairs, no showings, no commissions. The delinquent taxes and any liens get paid straight from the sale proceeds at closing. You walk away with whatever's left.
If your property is in Southern Colorado, the Colorado Springs area, or the greater Omaha region, this is what we do. We handle the whole process, we pay off any liens including tax debt as part of closing, and you're free of it in weeks instead of months.
Option 5: Do nothing (and lose the house)
We're mentioning this only because it's the path most people end up on by default. If you take no action, the tax lien holder eventually files for a tax deed, ownership transfers, and you lose the house plus all your equity in it.
Don't let this happen by accident. If losing the house is your decision, at least sell it first so you get the equity you've built up. If you let it go through tax sale, you get nothing.
What to do this week
Call your county treasurer for the exact balance. Find out if a tax lien has been sold. Get a realistic value on the property. Add up: value minus mortgage minus tax debt equals what selling would net you. That number tells you a lot.
What to do this week
- Find out exactly what you owe. Call your county treasurer's office. Get the current balance including all interest and fees.
- Find out if a tax lien or certificate has been sold. If yes, get the contact info for whoever holds it and find out how much they're owed and when your redemption deadline is.
- Get a realistic value on your property. Not Zillow. An actual person who can look at it. This tells you if you have enough equity to sell your way out of the problem.
- Add up: current property value minus mortgage balance minus tax debt. That's roughly what selling would leave you. If it's positive, selling is a real option. If it's very small or negative, you may need to negotiate with the tax lien holder.
- Talk to a professional. Either a real estate attorney (if things are complicated), a real estate agent (if you want to list), or a direct buyer like us (if you want a fast, clean exit).
Behind on taxes? We can help you sort this out.
If your property is in Southern Colorado, the Colorado Springs area, or the Omaha metro region, we can talk through your options. We'll tell you honestly what we could pay, what selling traditionally might net you, and where you actually stand. No pressure, no fees.
Get a Confidential Cash Offer →A final word
Tax problems feel embarrassing. They shouldn't. Life gets expensive, priorities shift, and property taxes are the kind of bill that's easy to fall behind on when everything else is competing for your attention.
What matters now is not staying stuck. You have options. Some of them are hard, some of them are simple, but all of them are better than doing nothing. Pick one and start moving.