Tax foreclosure

A tax foreclosure occurs when a property owner fails to pay legally required property taxes, leading the government to enforce its claim against the property. After the taxes remain overdue for the period specified by law, the local authority may take control of the property and sell it, usually through a public auction, in order to recover the unpaid tax dues.

Example: Consider a homeowner who ignores repeated property-tax notices for several years. The local authority first records a tax lien on the home. If the owner still does not clear the dues, the authority can proceed with tax foreclosure, take possession of the property, and sell it to recover the outstanding taxes.