How to Prevent Tax Foreclosures

Failure to pay taxes on your residence can result in losing your home to tax foreclosure. Mortgage lenders are not the only ones authorized to take your home. The Internal Revenue Service (IRS) requires everyone to pay taxes on their homes; thus, defaulting on tax payments can end in losing your home and having the property sold at auction. Fortunately, strategies are available to help prevent tax foreclosure.

Instructions

1. Work with an attorney. You will need the help of an attorney to fight a tax foreclosure and keep your home. Use an attorney familiar with tax foreclosures and real estate. Speak with your mortgage company or the IRS to see if an attorney or law firm is assigned to your case. If so, contact this attorney to begin negotiating a deal to avoid foreclosure.

2. Take steps to redeem your home. Redemption involves paying all back taxes to prevent a foreclosure and keep your home. Ask about fees to stop the foreclosure process.

3. Forward your payment to the appropriate agency. Once given an amount to redeem your property and prevent foreclosure, make this payment to the IRS. Include past due fees and any interest fees.

4. Prevent tax foreclosure with a chapter 13 bankruptcy. Filing chapter 13 will halt a tax foreclosure, but does not exempt you from this debt. Strike a deal with the bankruptcy court and IRS to pay back all back taxes plus interest to prevent a tax foreclosure.

References

• FindLaw: Facing Foreclosure? How Bankruptcy Can Help
• Reinhardt Milam Fisher & Idol, PLLC: Tax Assessment and Foreclosure FAQ