When a property is in default with property taxes, the county that the property resides in will give the owner 2 years to pay it. If the owner does not pay the taxes within that 2 year period, then the county will ‘turn the property over’ to the Commissioner of State Lands office.
Here’s an important thing to know: Arkansas is a tax deed state. This means that instead of placing a ‘tax lien’ on the property, the state actually takes possession of the property and deeds the property to the state!!!
The good news is that once this happens ,the Commissioner of State Lands office will still hold the property (in the State) for 2 additional years . So the owner can still go to the state’s office and pay the taxes to get their deed back (re-obtain possession).
However, IF the owner never pays the taxes and the property is 4 years due in back taxes, then the property will be added to the state’s tax auction list. Each county has its own auction date, and at this time the properties that are on the list will be offered for sale to the public, in a live bidding auction. This is where the owner can lose their property for pennies on the dollar.
Very important: But wait, there’s still good news! An owner has one final chance. There is actually a redemption period of 10 days after the auction, where the prior owner can go to the states office after the auction and pay the taxes to re-obtain their deed / ownership . Again, this is only a 10 day period.
This can get very stressful.In Arkansas, the state can get title to your home if you don't pay your property taxes.
Typically, the amount of property taxes that a homeowner must pay is based on the assessed value of the property. All past due taxes must be paid in full. Current taxes can be made in installments.
IF you have a property facing back taxes issues, give us a call. We are more than happy to assist you 😉
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