The increase in property taxes across the nation is only one symptom of the ongoing financial crisis the world has been in since 2008. Many homeowners nationwide have suffered a vicious cycle. They lose their jobs, struggle for a while, and eventually foreclose on their homes. Multiple foreclosures mean that cities and states don’t get the property taxes they need flowing into their coffers, and they experience a budget crisis themselves as a result. These cities and states then increase property taxes on the remaining homeowners, which then puts even more strain on people who are already struggling to make ends meet.
If your’e one of the many suffering under the mounting strain of bills, mortgages, and taxes, you may want to consider your financing options. Rather than paying thousands in penalties and late fees, you may want to finance your taxes to provide a little financial relief to you and your family. Here are three tips for financing.
1. Understand the consequences of not paying your property taxes.
Unpaid taxes lead to a tax lien. A tax lien essentially means that whomever you owe taxes to has a legal claim on your property. In the short term, having a tax lien placed on your property means that you’ll suffer from bad credit and have trouble financing any major new purchases, such as a car. In the long term, a tax lien means that your home can be sold out from under you in order for the city or state to collect on the taxes you owe.
Meanwhile, the longer you wait to pay your taxes, the more the late fees start to build up. By the time you finally pay them off, you may end up paying much more than you originally owed thanks to the penalties and interest fees. By the time you finally pull together the money you need to pay your $10,000 property tax, you may end up owing another $4,000 or more in fees.
2. Find a reputable property tax loan company to help you.
Fortunately, there is a way out of the tax dilemma. There are lending companies who specialize in paying off taxes and related late fees. You’ll still be paying interest on a loan with the tax financing company, but the debt you incur will not mount as quickly as it would have in the hands of the tax assessor.
After the company loans you the money you need to pay off your taxes and late fees, it takes over your tax lien. Since the tax loan company will own your tax lien, make sure you do your homework and check into any complaints about the various tax loan companies you’re considering before choosing to do business with them.
3. Stay current with your loan repayments.
When you get a tax loan company to help you, make sure that you stay current with your loan repayments. Otherwise, because the company owns your lien, you could still lose your home. Don’t treat a property tax loan as the permanent solution to your problems; treat it as a stopgap measure that temporarily solves your tax problem as you get your financial feet under you again.
By following these three tips, you will be well on your way to recovering from your property tax crisis. Working with a reputable tax loan company will save you thousands of dollars as you resolve your financial problems.