Handling a Past Due Property Tax Bill

Posted on: 26 February 2021

Back taxes that are owed on the residential property that you own can cause your home to go into foreclosure. Attempting to pay off a lump sum by a specific date can be difficult, especially if you are faced with a hardship that results in having less income to handle bills with. A property tax attorney can help you formulate a plan that will preserve your ownership and allow you to pay a reduced cost or receive a temporary stop payment arrangement.

Costs That Continue to Compile

Falling behind on property taxes can make it difficult or impossible to keep up with the current tax year and your responsibilities. Money that is submitted through the state will be used to satisfy an older bill first. Because interest rates may vary, the amount that you initially contemplated owing may increase in size. Tax arrears may result in a lien being placed against your property. Even if you decided to sell your home, the tax bill must be paid in full. This means that a sale cannot be completed when there is an existing tax amount that hasn't been paid.

Local and Regional Taxing Authorities 

Local and regional taxing authorities collect property taxes from specific jurisdictions. Correspondence that is sent to a debtor may include a formal letter that indicates how much money is owed, the tax year, and any interest rates or late fees that have been added to a bill.

Some correspondence may be written in a way that sounds threatening and legal terms that relate to the potential loss of your home can be scary for a property owner to see. A property tax attorney will be up to date on what laws are being mandated during a current year and any laws that pertain to past years. Amounts can change on an annual basis and this is why someone who is trained to review tax materials is the best one to aid an individual who owes taxes.

A lawyer will correspond with the tax authority/authorities who contacted you and will attempt to form a resolution. A resolution can involve paying less money than what you initially owed, being granted an extension that will allow you to temporarily put the bill on hold or supply you with an extra year or several months to make a payment, or granting a break from interest rates that have been added to your bill.