It is quite possible that at some point in your life you will struggle financially and not be able to pay your bills. While you are trying to deal with these problems by getting more work, resolving personal issues and selling off your items, you might find it difficult to pay your property taxes.
If you are unable to resolve this issue, it is possible that the governing authority will proceed to put a tax lien over your home. This authority will then place your home on a list of tax foreclosed properties.
To avoid losing your property and having to struggle through the pain and anxiety of a tax foreclosure, there are a few strategies you can utilize. Some of them are as follows:
1. Ask the governing authority for a time extension to pay your debt.
This straightforward process will provide you with additional time to rectify your financial situation. The local authorities want you to pay your debt as soon as possible but they are not evil. They really don’t want you to lose your home and they will be lenient with you if you contact them first and propose a payment plan that is agreeable to them.
2. Tax Payments by Installments.
Some states offer the possibility of paying off your taxes in smaller installments. Once again, the local government is keen to see you attempting to pay your taxes. This act of good faith by paying a portion means that the authorities are more likely to be helpful and offer you a payment plan. Each local authority will suggest their options when dealing with paying down tax debt. Ring up and ask for assistance. You will be pleasantly surprised at people’s understanding of your situation.
3. Offer in Compromise
Another option for the struggling property owner is to ask the local authorities for an Offer in Compromise (OIC). An OIC allows you, the property owner, to negotiate a settlement of the total tax debt you owe by paying a lower amount. For example you may have an outstanding debt of $2000, but you may be able to negotiate to only pay $1000 to clear you debt with the government. It is important to note that the lien on your property will continue even though you have an OIC in place, and it is only when the OIC is accepted by the authorities and you have paid it off completely that the lien will be removed.
4. Engage a Tax Attorney
A tax attorney is an expert in effectively assisting you with steering clear of any impending tax liens. He can ensure that your negotiations with the tax department for additional time in paying your outstanding tax goes smoothly. You might want to request to have your tax reassessed if your tax attorney believes that it is the right course of action. He may be in a position to seek a temporary stay on your property being listed as a property under tax foreclosure [http://taxforeclosures.lifeandmoneyonline.com/government-foreclosure-tax-sales.php].
5. File for Bankruptcy
You can file for Bankruptcy to avoid losing your property in a tax foreclosure case. You can ask the bankruptcy court to minimize the taxes payable by you, and the court may even reduce them down to zero. It is up to the judge to decide on the outcome of the bankruptcy process but how it is applied for is also critical to the outcome. Bankruptcy is not a process to be taken lightly though. It may get you out of paying your property taxes, but your credit file will be marked with you as bankrupt and you will find it difficult to get finance even for the smallest things, like a cell phone.
Know what the government guidelines are regarding tax payments so you understand your obligations. It is important to pay any tax due on your property within the required timelines, even if that means that other bills do not get paid. When purchasing a new home, you must first endeavor to find out if the property comes with any tax issues.
Don’t find yourself in the trap of tax foreclosure as this can be stressful and difficult. If you find yourself in this unfortunate circumstance, remember that immediate negotiation with the concerned authority, where you advise them truthfully of your situation, will significantly increase the chances of you keeping your home.
If you need to know more about county tax liens or government tax foreclosures, we’d love to see you at [http://taxforeclosures.lifeandmoneyonline.com] where we share our investment knowledge and insight on foreclosure tax sales. Check out our recommended resources and current information that will give you the investing edge you’re looking for.
Nicole M Brooks
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