Can You Lose Your House Not Paying Property Taxes? Yes, But Here Are Three Ways You Can Keep It

Tax Liens: Can You Lose Your House when not Paying Property Taxes?

You are sitting there with not enough money (yet again), and unable to pay your property taxes. You may be wondering if you could lose your house over not paying property taxes? The possibility is huge, even if you are up-to-date with your mortgage payments. It is a sad fact that you cannot be 100% secure with your home ownership until you deal with your property taxes properly. 

Property taxes are an even bigger responsibility that, if taken for granted, can result in the loss of your home or financial credibility. Missing one due date can immediately threaten your property or worse, your children’s future.  Imagine all your hard-earned money going to waste because you overlooked your tax obligations. 

If you are facing a potential property loss, there is no time to waste. Keeping your house is always the best option. You want to provide your family a safe and permanent home where you can build a future and leave a legacy. It is certainly no fun hopping from one apartment to another. What you need to do is to find a way to iron this thing out. 

Property Taxes and Tax Liens 

On the surface, property taxes and tax liens are pretty straightforward. They become complicated only when you neglect them.   

Tax lien and tax levy 

A tax lien is a legal claim against your property when your tax account becomes delinquent. This is imposed by the IRS, your local county or local government. The tax levy, on the other hand, gives the government the legal right to seize your home. 

Property tax  

A property tax is a type of real estate tax that land owners pay to the local government yearly. The property tax rate paid depends on the market value in your locality. The payment schedule also depends on the area or county you live in. This only affects the land you own, a structure, and/or a building if you are running a business. 

Can you lose your house not paying property taxes? 

Yes, unfortunately. If you do not pay your property taxes, your local taxation office will put a tax lien on your home until you have paid your debts in full. If your account becomes tax delinquent for a long period, the government will then impose a levy on your property.  

The Consequences of Tax Delinquency 

Missing deadlines comes with a cost, and a huge one at that. In most cases, the consequences negatively affect your life.  

Unpaid taxes will affect your credit score  

You may think that your credit score will be safe from prejudice with the formulation of NCAP (National Consumer Assistance Plan). This agreement protects your credit reports by excluding tax liens. It is almost good news if it had been passed as a law, but it wasn’t. This means that while some counties can ignore tax liens, other counties may still add it in, thus affecting your credit scores. Lenders will not be too pleased when you apply for a loan. 

Losing your home in a tax sale 

Losing your home in a tax sale may be the most dreadful repercussion of not paying your tax debts. When your property tax bills pile up, the local government will start sending you notices. At the same time, your tax account will start gaining interests and penalties. The amount you owe to them continues to grow. If you fail to settle your tax debts, the county will put your home up for tax sale or auction. The potential buyer will pay off the tax debts and you will no longer own your house. 

What Are My Options If I Can’t Pay Property Taxes? 

Selling your house should be your last resort. As much as possible, we want to help make keeping your house top priority. There are several ways that you can satisfy your tax debts. 

Borrow money and pay it in full 

As much as possible, do everything you can to keep your home. Find someone who will lend you money to settle your unpaid taxes. It could be a friend or a relative – anyone who will be generous enough to give you financial assistance. 

Payment plans for tax delinquent accounts 

The government can indeed be harsh when it comes to tax delinquency but it is also sympathetic. A number of programs that allow you to settle your tax debts gradually are proofs.  

  • Offer in compromise – The IRS can let you pay less than the actual tax debt amount. They will assess your situation to know if you qualify. You will then be able to select a payment option that best suits your income.  
  • Payment extensions and installment plans – You can apply for payment extension of up to 120 days to pay off your tax debts. If 120 days prove not enough, you can then apply for an installment plan through the IRS. An installment plan lets you pay your tax debts through payroll deduction, credit card, direct debit, or EFTPS (Payment by Electronic Federal Tax Payment System), among other payment options.

Seek a trusted company (that has experience dealing with tax delinquency) to help you 

You do not have to do it alone. In many cases, the best option is to seek help from a real estate company. You will get all the help you need in dealing with issues involving your property by doing this. 

Only deal with a company that has a proven track record of providing top-notch service. At Simple House Solutions, we’ve dealt with various tax delinquency situations, and keep your best interest at heart. We offer options, including selling your home as-is and for cash as a quick, easy solution. We’ve had years of assisting home owners in resolving property issues, particularly homes with tax liens. 

Can You Lose Your House Not Paying Property Taxes? Yes, But Simple House Solutions Will Help You See Your Options! 

You may be stuck in your house wondering about the best steps to take to end your battle with tax. It’s a good thing Simple House Solutions has a qualified team to handle the matter for you. We understand what it is like–and you deserve more than eternally struggling to keep the life you have worked hard for. 

We are sincerely dedicated to helping you win in whatever options you take. Whatever works for you, works for us and we will do our best to offer you the best help that you need. 

Take the first step and give us a call. As soon as possible, we will lay out a plan suitable to your needs.