Sell Your Dayton House with Tax Liens Before the Auction

How Property Tax Delinquency Works in Montgomery County

Property taxes in Montgomery County are billed semi-annually — typically in January and July. If taxes go unpaid, the county begins a formal delinquency process that can ultimately result in a forced sale of your property.

Here's how the timeline works in Ohio under ORC Chapter 323:

The Good News: Tax Liens Are Paid at Closing

Here's what most homeowners don't realize: you don't need to pay off your property taxes before selling. When we close on your Dayton home, the title company handles all of this:

• ✓Delinquent property taxes are paid from the sale proceeds — just like a mortgage payoff.
• ✓Accrued interest and penalties are satisfied — the full balance is calculated as of closing and paid directly to the county.
• ✓Any tax certificates held by private investors are redeemed — if your taxes were sold to a tax certificate holder, their certificate is redeemed at closing.
• ✓You receive whatever equity remains after the tax payoff and our closing costs (which we pay).

Tax Certificate Sales in Montgomery County

Ohio law allows counties to sell delinquent tax certificates to private investors. This creates a secondary deadline many homeowners don't know about.

Check with the Montgomery County Treasurer to find out: (1) your exact delinquency balance, (2) whether your taxes have been certified to the State or sold to a certificate investor, and (3) when foreclosure proceedings could begin.

Ohio's Property Tax Exemptions and Assistance Programs

Before selling, it's worth knowing what assistance is available — though if you're significantly delinquent, selling may still be the best option:

• ✓Homestead Exemption — Ohio offers a Homestead Exemption for homeowners age 65+ or permanently disabled, reducing taxable value by up to $25,000. If you weren't enrolled, you may have been overpaying.
• ✓Owner-Occupancy Credit — Primary residence owners in Ohio receive a 2.5% reduction in property taxes. If your property hasn't been classified as owner-occupied, you may qualify for a retroactive correction.
• ✓Delinquent Tax Payment Plans — Montgomery County offers payment plans for delinquent taxes under ORC § 323.31. However, if you're already in foreclosure proceedings or have substantial delinquency, a payment plan may not be sufficient.
• ✓HEMAP (Ohio's Homeowner Assistance Fund) — Federal pandemic-era assistance helped many Ohio homeowners with delinquent taxes. Funding may still be available — contact the Ohio Housing Finance Agency (ohiohome.org) for current status.

Tax Lien Home Sale FAQs — Dayton OH

Before After

Real Project — Financial Hardship

Dayton, OH · November 2025

Liens and financial pressure don't stop us. We handled all outstanding issues at closing and got the homeowner their proceeds fast.

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