What Happens if You Can't Pay Your Property Taxes?
Owe Back Property Taxes Cannot Pay
If you owe delinquent property taxes, you may be in a bit of a panic. But, don’t despair; property taxes are often some of our largest tax bills, and they can be difficult to pay for anyone. Here are some steps you can take to resolve your issues for delinquent property taxes or selling a house with a tax lien.
First, contact your tax collector. Hiding and avoiding their calls and letters will get you nowhere. Your local tax collector will likely be able to work out a payment plan for you if you communicate with him. However, if he gets no response to letters or phone calls, he will assume that you don’t intend to pay the delinquent property taxes and he will continue to pursue additional methods of collection. When you discuss your situation with the tax collector, be certain to find out about the penalties and interest you’re accruing. In many cases, you’d be wise to take out a loan to pay the taxes off, if the interest rate the collector is charging you is higher than the interest rate on a loan.
Still Owe a Mortgage?
Talk to your mortgage company. If you have a mortgage on your home, you can likely begin making your property tax payments for the years to come monthly along with your mortgage. The mortgage company will put the property tax portion of your payment into an escrow account and then they will pay next year’s tax bill for you out of this escrow account. This method won’t help you pay the delinquent property taxes you owe right now, but it will keep you from having this same problem again next year.
Selling a Property with Back Taxes Owed
If your taxes are not paid, and no arrangement is made, eventually your taxes will be sold to the highest bidder at a Property Tax Foreclosure Sale. Depending on your state, this sale may be for the lien of delinquent taxes or the entire property. After a certain period of time, if you have still not paid the taxes, the holder of your delinquent tax lien can foreclose on the lien and acquire your property.
If you are looking to sell a property before foreclosure, we can help. We buy property in all 50 states and Washington D.C. for cash--- even ones that still owe back taxes. If you want to sell your house with back property taxes, you may fill out the Sell My Property Fast Form or call us at (202) 826-8179.