Property Taxes Cause Foreclosure More Often Than You Think

Property Taxes Cause Foreclosure More Often Than You Think

If you think that failing to pay your property taxes won’t catch up with you, think again. If you don’t believe me, stop paying your property taxes and you will really see who owns your home…the government.

Not paying your property taxes on time can be much more expensive in the long run. If you are a homeowner or a real estate investor, you should be aware of the penalties associated with failure to pay your property taxes. Property taxes are completely separate from the payment of your home. Even property owners that pay cash and own their homes completely are still responsible for paying property taxes. This is an annual or semi-annual fee that must be paid to avoid harsh penalties.

Even if you are merely late paying your property taxes, there are added expenses that will occur. Being delinquent with tax payments associated to the real estate you own can lead to penalties and interest being added to the amount that you owe. After delinquency the penalties only become harsher and the action taken against you will become much more serious. Many Americans have even lost their homes, because they were so behind on their property taxes. Therefore, this is not an issue that should be taken lightly.

Many times delinquent property taxes are sold to companies that specialize in acquiring property by paying the taxes owed by a homeowner.  If the homeowner does not have the ability to redeem the taxes (plus attorney fees and penalties), these companies can foreclose on the property and take it for pennies on the dollar.

Due to the current economic environment this is a problem that is only growing worse. Many individuals are faced with harsh realities associated with failure to pay their property taxes. Many variables have combined recently to make it even more difficult to pay property taxes. With recent storms that ravaged the east coast and local government budgets being constrained, it is becoming increasingly more common to see homes with delinquent property taxes.

Many Illinois property owners are behind on their property tax payments. Even though foreclosure is only used as a last result, it is sometimes the only viable option for the government to collect the outstanding debt owed by a homeowner. Recently lists have been published in newspapers detailing the residences that are behind on their property taxes. This data has always been available at the courthouse but it is being published in the newspaper more frequently.  Some of the houses published have not paid their property taxes since 2005. Therefore, not only will not paying your property taxes bring you fees and possible home foreclosure, but public embarrassment as well in some cases.

How To Lower Property Taxes

Many home owners feel that they are unfairly overpaying in relation to their property taxes. Most people want to pay their fair share but don’t want to be overcharged either.  If you feel that your tax assessments are incorrect and you are overpaying, then filing an appeal is your best option. Some counties even allow you to make an appeal online on the county website.  Many times attorneys can be hired to fight for you on your behalf.  These attorneys are only paid if they are successful in lowering your taxes (The industry standard is that they charge half the amount of savings for the first year).  Call 1-800-HOPE-DAY to be connected with a local tax expert.

Behind on Property Taxes and Can’t Catch Up?

If a person is behind on property taxes and has no way to catch back up, selling the property may be the only option.  Listing the property through a Realtor may be a good option unless the homeowner is on a tight time table.  If time is of the essence, it is a good idea to reach out to investors that can close quickly with cash as-is.  It is much better to walk away from the situation with some money then it is to lose the house to property taxes and walk away with nothing.  Call 855-SELL-QWK for a free, fair, and fast cash offer!