Office of the County Attorney

Summary of the Tax Foreclosure Process

 

Virginia localities are only authorized to convey tax delinquent property through foreclosure auctions instituted in the locality's Circuit Court system. This judicial process takes anywhere from six months to more than a year, depending on the complexity of the ownership and the lien interests attached to the property in question.

The process starts with notice to the property owner and a publication in a local newspaper listing the property as being eligible for foreclosure. After a 30-day period expires from the date of notice and publication, an equity action is filed in Circuit Court naming all the holders of interest in the property as parties. This step enables the parties to defend their interest in the property if they chose. The culmination of the Court proceeding is a public auction, unless the Court orders otherwise. 

 

For Prince William County, the auction is held at the County's courthouse located at 9311 Lee Avenue in Manassas, Virginia. The highest bid must be confirmed by the Circuit Court. The payment terms of the sale are usually 10 percent in cash or certified funds on the date of the auction, and the balance in cash or certified funds within 30 days of Court confirmation. The Court-appointed Commissioner of Sale will present the bid to the Circuit Court, and if the Court determines the bid is satisfactory, the sale is confirmed and settlement usually occurs within 30 days thereafter. The property will be conveyed by a Commissioner's Deed, and the purchaser obtains the property free and clear of all prior recorded liens.

 

The County contracts with an outside attorney to conduct its judicial sales. Judicial Tax Sale of real estate properties with delinquent taxes exceeding the December 31 second anniversary of delinquency will be issued a Judicial Tax Sale Notice allowing 30 days in which to pay in full or make acceptable payment arrangements to pay in full and “redeem” the property back to non-delinquent status.  Following that 30-day period, the accounts/properties will be handed over to the County Attorney representative to initiate the Tax Sale process, a legal course of action process with additional notification to all parties and “parties unknown”, followed by an eventual auction to sell the properties.  There will be added costs for attorney fees, title search, advertising, service of process, notices, and other fees added to the total due from taxpayer or buyer at auction before the matter is redeemed or released. 

For more information, contact Taxing Authority Consulting Services (TACS) at https://taxva.com/

TACS information:

Office hours: 8:30 a.m. – 6:30 p.m., E.S.T., Monday through Friday (except holidays)

General Collections: (804) 545-2500 or (703) 880-1078

Court Fine Collections:  (804) 259-1234

Collections Fax: (804) 440-1171

 

Bankruptcy: (804) 649-2445

Bankruptcy Fax: (804) 378-2681

 

Mailing Address: Post Office Box 31800,  Henrico, Virginia  23294

Email: [email protected]