Some investor landowners and lender REO departments are holding Florida real estate and, for cash flow reasons, are not paying the real estate taxes. Some lenders are in workout or foreclosure mode holding a mortgage on distressed real estate. Real estate investors, REO holders, and mortgage lenders should check their portfolios NOW to see if delinquent real estate taxes are owing for the 2012 calendar year or earlier on any parcels in which they have an interest.

Why?

Because, as of April 1, 2015, a 2012 real estate tax certificate holder may apply for a tax deed, thereby jeopardizing the interest of any owner, lien holder or mortgagee of the property. If the owner or mortgagee redeems the 2012 tax certificate prior to the tax certificate holder's application, a tax deed sale will be avoided for a least a year. After a tax certificate holder applies for a tax deed, ALL delinquent taxes (2012, 2013 and 2014) must be paid to prevent a tax deed sale, plus interest and costs. This can amount to two or three times the amount required if payment of the 2012 tax certificate were made before the tax deed application.

Paying 2012 real estate taxes NOW can avoid a substantial negative cash flow event in 2015.