Property tax foreclosure in Virginia

The property tax process in Virginia, step by step

1. Taxes become delinquent

   After your locality's due date

   Each city, county and town sets its own due dates. Localities can add a penalty of up to 10 percent of the tax or $10, whichever is greater, and interest of up to 10 percent a year for the first year. If a locality has no ordinance, the default is a 5 percent penalty after December 5 and 10 percent interest.

   Va. Code §§ 58.1-3915, 58.1-3916, 58.1-3918

2. Ask about a payment plan or tax relief

   Any time before the sale

   The treasurer can suspend a tax sale case if you sign an installment agreement of up to 72 months, as long as you also keep current taxes paid. Many localities also offer real estate tax exemptions or deferrals for owners 65 or older or with a permanent disability; ask your commissioner of the revenue.

   Va. Code §§ 58.1-3965(C), 58.1-3210

3. Warning letter and published list

   At least 30 days before the court case is filed

   The treasurer must mail notice to your address on file and to the property, telling you that you can ask for a payment agreement. The locality also publishes a list of properties to be sold. Court costs, publication costs and attorney fees start being added to what you owe.

   Va. Code § 58.1-3965(A)

4. The circuit court case

   Usually after December 31 following the second anniversary of the due date

   The locality files a complaint in circuit court, and you and every lienholder must be named and served. Read the papers and file an answer if you dispute the amount. Some low-value properties, such as blighted or condemned parcels or certain parcels assessed at $100,000 or less, can be brought to court sooner.

   Va. Code §§ 58.1-3965(A), 58.1-3967

5. Redeem before the sale date

   Up to the date set for the sale

   You or your heirs can redeem by paying into court all taxes, penalties, interest, costs and a reasonable attorney fee set by the court. Partial payment does not stop the case. There is no right to buy the home back after the sale.

   Va. Code §§ 58.1-3965(B), 58.1-3974

6. Judicial sale and confirmation

   After the court orders the sale

   A special commissioner sells the property at auction and the court confirms the sale. The buyer takes title free of the liens of everyone named in the case. A party served only by publication can ask for a rehearing for good cause within 90 days of the confirmation.

   Va. Code § 58.1-3967

7. Claim the surplus within two years

   Within 2 years after the sale is confirmed

   The former owner and heirs are entitled to the money left after taxes, penalties, interest, fees, costs and liens, and you must prove your claim, usually by motion in the same court case. If no one claims it within two years, the clerk pays it to the locality, which may later grant relief by ordinance if you show you were entitled.

   Va. Code § 58.1-3967

Common questions in Virginia