The housing market crash of 2007-2008 led to a massive wave of foreclosures, which has continued to affect the U.S. Only in the recent past have housing values begun recovering from the lows of that period.
Even now, many homeowners have found themselves dealing with a property tax bill they can’t afford to pay.
In some cases, this may mean that homeowners are at this risk of foreclosure. Thankfully, there are programs that offer residential property tax loans as an answer.
The Importance of Paying Your Property Taxes
You should pay your taxes on time, so the lien on your property is not used to sell your house for the proceeds.
If you don’t pay your property taxes, your property will be auctioned off by the county treasurer. This can happen even if you have equity in your house. The process of foreclosure takes time and can be stressful, not to mention costly.
You may have to go through a lengthy process and spend a lot of money on legal fees. You may also damage your credit score to the point where you cannot take out future financing.
How a Property Tax Loan Can Help You Avoid Foreclosure
If you’re facing foreclosure and don’t have the cash to pay all your taxes at once, you may be tempted to just ignore the problem. But this could worsen your situation. If you don’t pay your taxes, you will receive a bill from the county telling you how much you still owe.
If you ignore that bill, the fees will accumulate.
How to Find Out if You’re at Risk for Foreclosure
If you feel like you might be at risk for foreclosure, you can measure the risk by looking at your property tax bill.
Is your property tax bill more than twice what you paid previously? If so, you could easily lose your property. Any time you get behind on your taxes, you’re taking a big risk.
How A Property Tax Loan Works
If you apply for a property tax loan, you can pay back your taxes in installments over time. Therefore, you are not faced with making a lump sum payment.
The loan works as follows:
You calculate your taxes to see how much you can afford to pay. Then you figure out how much time you need to pay it all back. These amounts are then used to determine the terms of the financing.
It’s also important to learn how calculating your property tax works, and how taxation relates to the assessed value of your property.
Final Words: Don’t Give Up – You Can Get Financing
What you owe in taxes should not force you out of your home. You can manage this type of financial stress by dividing the amount you owe into regular and affordable payments. So, don’t give up. Find out more about property tax financing today.