Avoid Delinquent Property Taxes
Every property you own is subject to property tax.
There is no avoiding it.
You are going to have to pay every year, no matter what.
Ignoring this obligation is the worst thing you can do, as penalties and interest will accrue on your delinquent property taxes until they have been paid or your property faces a tax sale.
At a tax sale, an investor has the option to purchase a tax lien certificate.
When the investor purchases the tax lien certificate, they have purchased your tax debt and will now subject you to repayment at a rate of 12% to 24%, or possibly higher.
You generally have about a year to repay the tax debt and the interest to the investor, or face foreclosure of your home.
Foreclosure means that your property will be sold at auction and that you will, most likely, be evicted.
The simplest way to avoid all of this is to pay your property taxes.
If you cannot pay all of your taxes at once, the taxing municipality is generally open to a payment plan.
This may be your first and best option, although your interest will continue to accrue until payment is made in full.
If you can, you should consider taking out a loan on the property.
Depending upon the type of loan that you negotiate and the length of its term, it may turn out to be a better option than a payment plan with the taxing authority.
This is because the monthly payment and/or the interest rates may be lower than paying the accrued interest on the delinquent tax.
You may need to do some calculations and planning in order to decide which option better suits your situation.
Either one, however, is much better than forfeiture or foreclosure on your property.
Secondly, there comes a time in life when we must all make some tough choices.
If you are having a very difficult time making your property tax payments, it might be time to consider giving up this particular property altogether.
This decision, of course, is made more difficult if we are talking about your personal residence.
Whether the property in question is a personal residence or an investment property, selling may be better than losing everything to a tax sale.
Remember that the further behind you get on your property taxes, the more likely foreclosure becomes.
If you can sell the property and walk away with some money in your pocket, now might be the time to do so.
Before making such a decision, sit down with a real estate agent and discuss what you can do.
There is no avoiding it.
You are going to have to pay every year, no matter what.
Ignoring this obligation is the worst thing you can do, as penalties and interest will accrue on your delinquent property taxes until they have been paid or your property faces a tax sale.
At a tax sale, an investor has the option to purchase a tax lien certificate.
When the investor purchases the tax lien certificate, they have purchased your tax debt and will now subject you to repayment at a rate of 12% to 24%, or possibly higher.
You generally have about a year to repay the tax debt and the interest to the investor, or face foreclosure of your home.
Foreclosure means that your property will be sold at auction and that you will, most likely, be evicted.
The simplest way to avoid all of this is to pay your property taxes.
If you cannot pay all of your taxes at once, the taxing municipality is generally open to a payment plan.
This may be your first and best option, although your interest will continue to accrue until payment is made in full.
If you can, you should consider taking out a loan on the property.
Depending upon the type of loan that you negotiate and the length of its term, it may turn out to be a better option than a payment plan with the taxing authority.
This is because the monthly payment and/or the interest rates may be lower than paying the accrued interest on the delinquent tax.
You may need to do some calculations and planning in order to decide which option better suits your situation.
Either one, however, is much better than forfeiture or foreclosure on your property.
Secondly, there comes a time in life when we must all make some tough choices.
If you are having a very difficult time making your property tax payments, it might be time to consider giving up this particular property altogether.
This decision, of course, is made more difficult if we are talking about your personal residence.
Whether the property in question is a personal residence or an investment property, selling may be better than losing everything to a tax sale.
Remember that the further behind you get on your property taxes, the more likely foreclosure becomes.
If you can sell the property and walk away with some money in your pocket, now might be the time to do so.
Before making such a decision, sit down with a real estate agent and discuss what you can do.
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