Investors are buying Ohioans’ unpaid property tax debts, with 18% interest
Summary
Investors bought large amounts of unpaid property tax debts from Ohio counties, allowing them to collect the owed amounts plus up to 18% interest. Some counties sold record high amounts of these debts, which can lead to financial hardship for property owners and even foreclosure in rare cases.Key Facts
- Ohio law allows counties to sell unpaid property tax debts to investors.
- Investors pay for these debts and then collect what property owners owe, plus up to 18% interest.
- In 2025 and 2026, several Ohio counties like Cuyahoga and Franklin sold record amounts of tax debt certificates.
- The system gives investors rights to additional debts if the property falls behind on taxes again.
- County treasurers say selling liens helps collect money efficiently and encourages payment.
- Some treasurers add protections, like limiting interest or excluding low-income households.
- Critics say high interest rates trap property owners in a cycle of debt, risking loss of homes.
- Lawmakers are working on bills to stop these sales for homes and farms, supported by mortgage lenders.
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