Tax Title Info

What is a Tax Taking?

A Tax Taking is a mechanism for cities and towns in Massachusetts to secure a lien for unpaid property taxes and other municipal charges against property. State law governs the procedures for property tax collections and tax takings. The Town of Swampscott processes tax takings as necessary to secure collection of real estate taxes levied by the Board of Assessors when such taxes are not otherwise paid when due.

Taxes are billed quarterly, and due thirty (30) days after the bill date. After the due date, interest accrues at an APR of 14% per Massachusetts General Law.

Cities and Towns in Massachusetts operate on a July-June Fiscal year, and taxes are assessed on this basis. Failure to pay taxes for a particular fiscal year in full by May 1^st (4^th quarter tax) will result in a demand fee being assessed to your account, and a demand notice being sent to you by the Collector of Taxes.

If taxes, charges, interest, and fees are not paid in full within fourteen (14) days of the demand notice, the Collector will begin preparing a Notice of Tax Taking. This advertisement will state all pertinent information about the property, its owners, and any unpaid charges as required by law, and will also state the date that properties will be taken for unpaid charges. The Notice of Tax Taking will be posted in Town Hall and the Library and advertised in the Daily Item.

At this point, a property owner may only pay-off their balance in full, and only in “good funds” i.e. Cash, Bank Check, or Money Order only, in order to avoid the tax taking.

The Tax Taking will occur fourteen (14) days after a Notice of Taking has been duly posted and advertised, for all properties listed in the advertisement that have not otherwise satisfied their past due balance.

Within sixty (60) days of the date of taking, the Treasurer will prepare an Instrument of Taking and record the instrument with the Registry of Deeds, perfecting the town’s lien on the property.

A Tax Taking is a pre-foreclosure measure and is considered a serious delinquency. Failure to communicate with Resident Customer Service and arrange for payment of your account leaves your property at serious risk for foreclosure.

How do I avoid a Tax Taking?

• Be aware that property taxes are due quarterly, on or before February 1^st, May 1^st, August 1^st, and November 1^st every year
• Understand that failure to receive a property tax bill does not affect the validity of the tax or your responsibility to pay your tax in full in a timely manner; contact Resident Services before the due date if you have misplaced your quarterly tax bill and would like a copy
• Pay taxes on or before their due date
• Read all correspondence you receive from the town’s Tax Collector, Deputy Collector, or Treasurer carefully
• Communicate with the Resident Customer Service office if you are having difficulty paying your taxes before you fall behind on your payments. In certain cases, exemptions or deferrals may be available through the Assessing Department to help defray your taxes.
• If you receive a Demand Notice, pay your past due taxes immediately. A demand notice indicates that your property is at serious risk for additional interest, penalties, fees, advertisement, and ultimately a tax taking for unpaid property taxes or other charges.

What costs are associated with a tax taking?

• Interest Rate: 16% APR
• Interest to Date of Taking is capitalized and subject to interest
• Advertising Fees – Vary; appx. $50-$100
• Advertisement Preparation Fee - $10
• Recording Fee - $105
• Document Preparation Fee - $10
• Posting Fee - $5
• All other costs incidental to the taking as allowed by law

*All costs subject to change

Will a Tax Taking lead to foreclosure?

• A property that has been taken for non-payment of taxes will be referred for foreclosure after the taking is completed unless the balance is paid off.
• Tax Lien Foreclosure FAQs can be found here

How can I find out if a property is in tax title?

• A list of properties currently in tax title status is available at the bottom of this page
• You may also contact Resident Customer Service to research a particular property

How do I get my property out of Tax Title and avoid foreclosure?

• Contact the Resident Customer Service office for a pay-off amount: (781) 596-8851
• Make payment in good funds for the pay-off amount, in person at the Resident Customer Service Office
  • “Good Funds” include cash, bank check, or money order. Personal or Business checks will not be accepted for Tax Title pay-offs
• Treasury will prepare an “Instrument of Redemption” to be recorded at the registry of deeds
• You may provide an additional $105 in good funds, payable to “Essex South Registry of Deeds” and Treasury will record the Instrument of Redemption at the registry of deeds on your behalf, releasing your property of the lien.
  • Alternatively, you may record the signed Instrument of Redemption yourself and pay the registry of deeds directly

Are Payment Plans Available?

• Payment plans are available; please contact Resident Customer Service for more information.
• In some cases, financing may be available through your mortgage lender to pay-off the tax title balance. Contact your lender.