THE PENALTIES
Interest is added on the amount until the outstanding property tax is paid. The interest incurred varies between local governments and depends on the state in which the property is located. Interest might be calculated monthly and added to the already existing balance at anywhere from 4-7%. If the account still is in arrears at year-end, the interest often increases to 10%. You’re expected to pay whatever property taxes you owe in a span of two years, or else you risk losing your property to foreclosure. The tax collector may escalate events and file a tax lien against the delinquent account holder with the county land records. The property tax lien is the amount of property taxes owed the local government and stating any extra penalties or the prevailing (current) interest rates. This lien gives the government an interest in your property, while at the same time preventing you from getting a mortgage or selling the property until you’ve resolved the tax issue. Once this process has been completed and the tax collector has successfully secured a property tax lien, more stringent debt collection methods, such as foreclosure, can be used.
FORECLOSURE
Nonpayment of county property taxes often leads to a tax lien. If the property tax lien isn’t paid, action is taken to secure the debt. As mentioned, this can include foreclosure on the property. Foreclosure on a tax lien occurs if the homeowner doesn’t respond by paying the tax due. Homeowners need to pay more than the original tax bill amount to avoid a tax foreclosure. State
12
Powered by FlippingBook