Behind on Property Taxes in Scranton? Sell Before the Tax Sale

Pennsylvania Property Tax Sales — What Scranton Homeowners Need to Know

Falling behind on property taxes in Pennsylvania triggers a specific legal process that, if left unaddressed, can result in losing your home at a tax sale — often for far less than market value, with zero equity returned to you. Pennsylvania's tax sale process is governed by the Real Estate Tax Sale Law (72 P.S. § 5860.101 et seq.) and operates on a strict two-stage process: the Upset Sale and the Judicial Sale.

The good news: you have more time than you think to act, and selling before either sale can get you a fair price for your equity. Acting early is everything.

The Two Types of Pennsylvania Tax Sales

Upset Sale — Year 2 of Delinquency

The Lackawanna County Tax Claim Bureau holds an annual Upset Sale, typically in September. At an Upset Sale, the minimum bid is the "upset price" — the total amount of all delinquent taxes, penalties, interest, and costs. If someone bids the upset price or more, the property transfers to that bidder. The key point: any equity above the upset price must still go to the original owner. If no one bids, the property moves to the Judicial Sale list.

Important: PA law requires the Tax Claim Bureau to provide notice of the Upset Sale to all owners and mortgage holders by certified mail and publication. Missing this notice doesn't protect you — you must monitor your tax status proactively.

Judicial Sale — Year 3+ of Delinquency

The Judicial Sale is far more serious. The Lackawanna County Tax Claim Bureau petitions the Court of Common Pleas to approve an absolute sale — meaning the property sells to the highest bidder regardless of the sale price, and all prior liens, mortgages, and the owner's equity interest are wiped out. The original owner receives nothing above the sale price, even if the house is worth far more. A $200,000 Scranton home can sell at Judicial Sale for $15,000 and the owner walks away with nothing.

How to Stop a Pennsylvania Tax Sale

Under 72 P.S. § 5860.603, property owners have specific rights to stay or postpone a tax sale:

• Pay the delinquent taxes in full: Taxes can be paid up until the day of the Upset Sale. Even partial payments may help — contact the Lackawanna County Tax Claim Bureau directly to understand exactly what is owed and what payment arrangements are possible.
• Enter a payment agreement: The Tax Claim Bureau has authority to enter payment agreements for delinquent taxes. Under Act 33 of 1998, owners can request a stay of tax sale proceedings by entering a payment agreement.
• File for bankruptcy: An automatic stay under Chapter 7 or Chapter 13 bankruptcy halts all tax sales. Chapter 13 allows you to repay delinquent taxes through a 3–5 year plan. Consult a bankruptcy attorney — this is a significant decision with long-term consequences.
• Sell the property before the sale date: This is often the best option for homeowners with equity. A cash sale pays off all delinquent taxes at closing and you receive whatever equity remains. Far better than losing everything to a Judicial Sale.

Pennsylvania Homestead Exemption and Property Tax Relief

Pennsylvania offers several property tax relief programs that Scranton homeowners may not be fully utilizing:

• Homestead Exemption: Under Act 50 of 1998, Pennsylvania school districts provide a reduction on property taxes for owner-occupied primary residences. File with the Lackawanna County Assessment Office at lackawannacounty.org.
• PA Property Tax/Rent Rebate Program: For homeowners 65+, widows/widowers 50+, and people with disabilities of any age earning under $35,000/year. Rebates up to $1,000 per year. Apply through the Pennsylvania Department of Revenue at revenue.pa.gov.
• Senior Citizen Tax Freeze: Some municipalities freeze property tax assessments for qualifying seniors. Check with the City of Scranton Finance Office at (570) 348-4107.
• Act 77 Senior Tax Freeze: Scranton School District participates in programs that may limit tax increases for eligible seniors.

Tax Liens vs. Tax Sales — Understanding the Difference

A tax lien is placed on your property when taxes go delinquent. It attaches to the title and must be paid before the property can be sold with clear title. This is different from a tax sale, which is the actual forced sale of the property. Simply Sold RE can purchase properties with tax liens — the lien is paid off at closing from the proceeds, just like a mortgage would be. You don't have to resolve the lien before calling us.

NEPA Resources for Delinquent Property Taxes

Selling a Tax-Delinquent Home in Scranton — How It Works

If your Lackawanna County home has delinquent taxes and you want to sell before losing it at auction, here's how the process works with Simply Sold RE: We research the exact tax delinquency balance with the Tax Claim Bureau, factor it into your net proceeds calculation, and close the sale with the delinquent taxes — plus any mortgage balance and other liens — paid directly from proceeds at closing. You walk away with whatever equity remains, the tax lien is cleared, and the Upset or Judicial Sale is cancelled. Call (570) 433-9191 — even if the sale date is weeks away, we can often close in time.

Lackawanna County Tax Payment Plans and Relief Programs

Before considering a sale, exhaust every available relief option. Lackawanna County and Pennsylvania offer several programs that may allow you to address delinquent taxes without losing your home:

How Selling to Simply Sold RE Clears Tax Liens

Here's the practical mechanics of how a cash sale resolves property tax delinquency:

1. We make a cash offer based on current market value and condition — independent of your tax situation.
2. The title company runs a title search that identifies all outstanding liens, including delinquent taxes, mortgages, HOA arrears, and any other encumbrances.
3. At closing, all liens are paid from sale proceeds before you receive anything. If you owe $18,000 in back taxes and have a $40,000 mortgage balance on a home we're purchasing for $110,000, the title company pays the Tax Claim Bureau $18,000 and the lender $40,000 — and you receive the remaining $52,000.
4. The Tax Claim Bureau issues a lien release and the title company records clear title to the new owner.

You don't need to resolve the tax lien before contacting us or before closing. The resolution happens automatically at the closing table. The key is acting before the Judicial Sale — because after that, the equity that would have paid your debts and left you with something is gone.