In some counties foreclosures due to delinquent taxes have doubled from the previous year.  In one particular county these foreclosures were not on primary residences but instead on either vacant property or second homes.

The coming months may see more increases in these tax based foreclosures as unemployment continues and homeowners are struggling  with budgetary problems.  Second homes usually have mortgages that are delinquent as well, so paying the taxes only to lose it to a lender foreclosure does not make economic sense to unemployed homeowners.

For instance Hawaii is holding their first tax lien sale in 13 years, auctioning off 24 homes.  It is my opinion that we will see an increasing number of these in the coming years.