As a borrower who owns a mortgage, you are required to provide additional funds so you can pay for real estate taxes. This is sometimes done through an escrow account but this is not always set up and you may need to pay separately. If you fail to pay, the tax authority might take possession of your house and sell it.
How to Pay Your Taxes
If you are not sure if you can pay your taxes in time, contact the state as soon as possible. You may be able to negotiate a payment plan.
Property Tax Liens
All states are allowed to place a lien on a property if the property owner fails to pay taxes. This lien is considered a "first-lien" status and takes priority over other liens. After the property taxes have been delinquent for a period of time, the US government will be allowed to sell your property. They must provide you with a notice of the sale but they do not have to carry out any judicial action.
If you are concerned about losing your home, you will want to speak to a real estate tax attorney immediately. There are several steps you could take to save your home. First off, you will need to make sure that the tax assessment is even accurate. Your property might be worth much more than the taxes owed on the property.
Abatements and Exceptions
You may be able to reduce your property tax bill with abatements and exceptions. Your age and income could lead to your property tax bill being reduced. You may also be able to avoid having your home seized if you are able to prove that you would suffer hardship as a result.
Redemption is another option in which you will be able to reclaim the property if you are able to pay for the full sale price of the home plus additional fees. However, you will need to do this within a specific time frame or the other purchaser will be able to obtain the property.
Consultation from a Real Estate Tax Attorney
Regardless of the approach, you want to take, you will always want to consult with a real estate tax attorney if you are about to have your property taken due to unpaid taxes. The laws vary from state to state and tax collectors are very serious about receiving the taxes that are owed.
To learn more, contact a real estate tax attorney for help.
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