How to Avoid Tax Foreclosure
The possibility of losing your home is one of the most frightening events that can occur in life. An impending tax foreclosure can strip you of your residence even if your mortgage payments are made and on time. Failure to remit your property taxes in full can result in a tax lien on your property. Learn ways to avoid tax foreclosure to keep your house.
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Instructions
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Check with the elected officials of your county as to whether partial payment of taxes is allowed. Procedures will vary by location, but often the local government will have methods in place to aid those experiencing financial difficulties in paying their property taxes.
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Request more time in paying off your taxes by appealing to your local authorities. Meet with them in person with a written plan detailing how you propose to get caught up. Try negotiating other terms if they are resistant to your plan. Don't make promises you can't keep but instead only offer payments in amounts you know you can make on dates when you will have the funds.
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Petition an "Offer in Compromise" from your local government. This is a basically a deal made to settle your tax debt for a reduced amount. Note that a lien on your home will only be removed once the OIC has been agreed upon and paid in full.
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Seek help from your local aid agencies. Ask your local department of social services for names and addresses of organizations that assist people in times of economic hardship. Though these agencies may not pay your property taxes directly they may be able to grant you with financial aid for other bills allowing you to pay the taxes in part or full yourself.
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Consider a loan to repay your taxes. You can contact a loan company if you are unable to secure a personal loan from friends or family, but remember that payback terms may include a high interest rate which may put you in more hot water. Always read any loan contract thoroughly before accepting a loan.
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Seek legal aid for advice in dealing with a possible tax foreclosure. Many areas of the country provide citizens with free or modestly priced legal resources. Check out the LawHelp webpage for more information (see Resources below).
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Consider filing for bankruptcy if all else fails. This is a drastic step that will in many cases halt foreclosure due to unpaid property taxes. Always contact an attorney who deals specifically with bankruptcy and taxes before filing, as you will likely need expert help in this critical decision.
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Tips & Warnings
The retention of a tax attorney can help you negotiate with authorities regarding what you owe. He may also be able, through various filings, to buy you more time to get the overdue payments in before foreclosure.
Be proactive in dealing with your tax difficulties to give yourself a better chance in keeping your home. Contact your local government as soon as you realize you will be unable to pay part or all of your taxes.
