Legal Definitions - tax foreclosure

Definition: Tax foreclosure is a legal process in which a public authority seizes and sells a property because the owner has not paid their property taxes.

Example: If a homeowner fails to pay their property taxes for several years, the local government may initiate a tax foreclosure. The government will then sell the property at a public auction to recover the unpaid taxes.

Explanation: Tax foreclosure is a way for local governments to collect unpaid property taxes. If a property owner fails to pay their taxes, the government can seize and sell the property to recover the unpaid taxes. This process is different from other types of foreclosures, such as mortgage foreclosures, which are initiated by lenders when a borrower defaults on their mortgage payments.