Do you have unpaid property taxes in California? If so, the consequences can be very difficult to deal with. In our latest post, we will help you learn more about what’s at risk and the solutions available to you!
Depending on where you live, the size and value of your home, property taxes can become a huge burden. Once you get behind, the penalties and fees will start compounding, making it even more difficult for you to get out of the hole you are in.
What Can Happen?
The worst-case scenario? You could lose your home. You will likely incur penalties, fines and interest should someone buy the tax lien on your home. When you fail to pay your property taxes, the government will put a tax lien on your property until the balance has been paid off. If the debt remains unpaid, the city will auction off the lien to the highest bidder. At this point, you must pay the bearer of the lien the back taxes, plus fees, plus penalties and any interest the tax lien bearer has decided to impose. If they are not paid within an agreed-upon time, they can foreclose on your house and take ownership of themselves. Some people specialize in purchasing tax liens. It can be very scary if it comes to this and you have to worry about losing your home.
What Can You Do?
There are a few things you can do when you are faced with unpaid property taxes. You can pay them, have them lowered or work with a buyer who is willing to help you out of the hole you are in. Nobody wants to lose their home, especially to a stranger. Before your unpaid property taxes get out of hand, do everything you can to resolve the situation.
Pay Them Off
You can pay them back with the help of a loan. While this might seem like you are replacing one debt with another, having the peace of mind that you aren’t going to lose your home, sometimes makes it worth it. Keep in mind, you will also likely have fees and penalties that have been added on to your original debt. The entire amount must be paid off for the county to remove the lien on your property.
Sell Your Home Directly
A great way to get away from the burdens and consequences of unpaid property taxes is to work with a buyer who will help you to resolve the lien. The team at SPShomes will help you evaluate your situation and the solutions available to you. Often, we can help you take care of the lien when purchasing the home. This will allow you to sell the property and walk away unscathed. Property tax problems do not have to mean that you will lose your home. There is a way out!