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Old 09-09-2010, 08:12 PM
 
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Anyone have experience and/or knowledge of what happens when one fails to pay property taxes and how it takes for the related foreclosure threats? I know there are penalties for late payment, but how long before they threaten to take your property and house?
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Old 09-09-2010, 08:20 PM
 
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The properties I've seen foreclosed upon for back taxes have been delinquent 2-3 years about the time they have gone up for re-sale. I suspect the foreclosure process began at least 6 mos. prior.

If you are able to pay your mortgage but behind on your taxes it is best to try to work with the county for a payment plan. Go to your county treasurer's office and find out your options. Try to take a payment to be credited toward your delinquent tax amount if you think you may be able to work your way out and eventually catch up your tax payments.
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Old 09-09-2010, 10:19 PM
 
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Well I'm a mortgage CSR...My first question would be is your house paid off or do you have a mortgage on it. The reason I ask is because they will have your mortgage company pay the taxes for you, but if you have no mortgage, then they will try to put the house up for tax sale. It is important to call your tax locality to see how they will handle this delinquent tax. Usually the tax locality will notify the mortgage company (if you have a mortgage), the mortgage company will pay the delinquent taxes out of escrow (even if there is no money there or you are non-escrowed). Once your escrow is reviewed you will have a rather substantial escrow shortage and you monthly payment will increase. It normally takes about 3 months for the bank to begin foreclosing on your house. If you believe this will happen, i can give you some sort of hint that will help you with your mortgage payment. You can request for your mortgage company to spread you escrow shortage over 36 months (for the sake of your payment). This way you wouldn't be obligated to pay as much, however, you will carry this burden for 3 years. My best advice is to have the shortage spread over 36 months and try to payoff of shortage before the 36 months is up.
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Old 09-09-2010, 11:44 PM
 
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Quote:
Originally Posted by Townandcountrygal View Post
Anyone have experience and/or knowledge of what happens when one fails to pay property taxes and how it takes for the related foreclosure threats? I know there are penalties for late payment, but how long before they threaten to take your property and house?
I think it varies from state to state, but it's usually 5 years before the County puts your property up for tax sale. They will keep sending you "tax default notices" during that time to try to get you to pay up. In the meantime, for every month/year of non-payment, you will accrue a monthly penalty amount that is added to the principal amount. You will have to pay off the entire balance in total; they have the right to put your property up for tax sale if any portion of the balance remains outstanding.
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Old 09-10-2010, 12:26 PM
 
Location: Boise, ID
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I believe in my area, a tax sale happens when you are delinquent 3 years. However, taxes are billed a year in arrears, here, so to go to tax sale, you would currently have to be behind all of 2007, 2008 and 2009. 2010 isn't due yet. I know someone who has their house paid off in full, but was behind 2.5 years in taxes on a million dollar home. They were told they were in danger of having the house go to tax sale if they got another payment behind.
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Old 09-10-2010, 07:20 PM
 
1,280 posts, read 2,143,559 times
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Quote:
Originally Posted by Mtaylo24 View Post
Well I'm a mortgage CSR...My first question would be is your house paid off or do you have a mortgage on it. The reason I ask is because they will have your mortgage company pay the taxes for you, but if you have no mortgage, then they will try to put the house up for tax sale. It is important to call your tax locality to see how they will handle this delinquent tax. Usually the tax locality will notify the mortgage company (if you have a mortgage), the mortgage company will pay the delinquent taxes out of escrow (even if there is no money there or you are non-escrowed). Once your escrow is reviewed you will have a rather substantial escrow shortage and you monthly payment will increase. It normally takes about 3 months for the bank to begin foreclosing on your house. If you believe this will happen, i can give you some sort of hint that will help you with your mortgage payment. You can request for your mortgage company to spread you escrow shortage over 36 months (for the sake of your payment). This way you wouldn't be obligated to pay as much, however, you will carry this burden for 3 years. My best advice is to have the shortage spread over 36 months and try to payoff of shortage before the 36 months is up.
Paid for the house in full so no mortgage. However, it is not technically finished, hasn't had final inspections and not certificate of occupancy. I just discovered the period to protest the taxes passed--it was a period of 2 weeks after recieving the "Valuation Statement" last April! I still plan to protest the increase in tax.
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Old 09-14-2010, 06:34 PM
 
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You should talk to the county before doing anything drastic. They will work with you, I'm pretty sure, but if you miss the date to 'protest' it is a done deal until the next year - at least here in MN. If your mortgage is paid, don't quibble about something you can't undo. It's not worth it to have a lien or a judgement against you.

I worked at the courthouse and talked to the tax department about my house (I'd missed the deadline too). Keep in mind these are folks just like you and me who are working for a living and they have to abide by the rules. They couldn't do anything for me at that time because the deadline was past but they were very nice and explained it to me.

Talk to them and ask if there is anything they can do to help. Or, as Mtaylo said, set up a plan to pay it.

Last edited by Maryolson929; 09-14-2010 at 06:35 PM.. Reason: Needs more explanation
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Old 09-24-2010, 08:18 PM
 
1,280 posts, read 2,143,559 times
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Quote:
Originally Posted by Maryolson929 View Post
You should talk to the county before doing anything drastic. They will work with you, I'm pretty sure, but if you miss the date to 'protest' it is a done deal until the next year - at least here in MN. If your mortgage is paid, don't quibble about something you can't undo. It's not worth it to have a lien or a judgement against you.

I worked at the courthouse and talked to the tax department about my house (I'd missed the deadline too). Keep in mind these are folks just like you and me who are working for a living and they have to abide by the rules. They couldn't do anything for me at that time because the deadline was past but they were very nice and explained it to me.

Talk to them and ask if there is anything they can do to help. Or, as Mtaylo said, set up a plan to pay it.
Not a quibble issue (I wish); don't have the money. Will try to set up payment plan but that's tough because they'll probably want large payments so I'll send what I can and hope for the best. I know many others are in the same boat.
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Old 09-24-2010, 08:19 PM
 
1,280 posts, read 2,143,559 times
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Just a note: my property taxes increased 300% in one year and that's with an exemption!
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Old 09-25-2010, 10:08 AM
 
3,043 posts, read 2,188,830 times
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I think property taxes are not fair. How can it be right to buy something and pay taxes on it for the rest of the time you own it even if you pay it off in full? I think the government knows this is just one way for them to seize peoples assets. Just raise the taxes high enough so People can no longer pay them. Bogus.
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