What is Tax Foreclosure?

When real property taxes become three years delinquent, the county treasurer begins foreclosure action. A certificate of delinquency is filed with Superior Court. In addition to taxes, foreclosure costs of approximately $500 to $800 per parcel begin to accrue.

Title searches are conducted for each of the parcels. As required by law, all parties with recorded legal interest (revealed by title search) are served by certified or registered mails with notice and summons. A notice and summons is also published in the local newspaper. (RCW 84.64.050)

The treasurer receives a judgment from the court foreclosing on the tax liens and authorizing the sale of parcels. All of the parcels being foreclosed on can be redeemed by their owners, or other parties with recorded legal interest, up until the close of business on the day before the sale. That is, they are allowed to pay all that is due, thus removing their parcel from the sale. Tax foreclosure sales are usually held once a year. (RCW 84.64.060)

Prior owners have no rights to the property after foreclosure, UNLESS they were a minor or legally incompetent. Minors and legal incompetents have the right to redeem anytime within three years from the date of the foreclosure sale. If they do so, they must pay the amount that the property sold for, plus interest on the tax amount. If there were any improvements made by the new owner, those would also be paid for. (RCW 84.64.070)

Generally, all liens on foreclosed properties are extinguished. However, the county can make no guarantees that the prior lien holders will honor this extinguishment. IRS liens, in most cases, are also extinguished. If prior lien holders attempt to collect on their liens after the property has been foreclosed on, it is entirely up to the new owner to defend against these claims. (RCW 84.64.080)

If a parcel is sold at a foreclosure auction for more than the amount owing, the surplus money can be claimed by the previous record owner. This is the party who held title on the day that the Certificate of Delinquency was filed. They have up to three years from the date of the sale to make their claim. (RCW 84.64.080)

How long does it take to get a deed?

A deed will be issued within thirty to sixty days of the date of sale. Deeds are forwarded to the Kitsap County Auditor's Office for recording and mailed to the address provided in the bidder registration. The type of deed issued varies.

• Tax deeds are issued for parcels purchased at tax foreclosure sales.
• Treasurer's deeds are issued for tax-title parcels and County owned land.
• Tax deeds and Treasurer's deeds provide the purchaser no guarantees. There can be clouded title or other problems, which the county is neither aware of nor responsible for to the purchaser.