Typically, property taxes are paid out of escrow as a function of your mortgage, but sometimes they can be overlooked, especially if you are facing foreclosure or if your house is free-and-clear. This is what’s called a tax delinquency. You may think they are easy to catch up and you’ll get around to it, but many homeowners overlook the yearly taxes or simply cannot pay them due to financial restraints.
The county in which the property is located will sell your taxes to investors in the form of a tax certificate. For every year you are unable to pay the taxes, you are essentially selling them to an investor, so that they control the tax impact for your house.