Reasons to Obtain a Property Tax Loan

The deadline has passed, and some people were unable to pay their property taxes. These taxes are still due, so these homeowners will need to find a way to settle this tax debt. If they do not do so in the very near future, several unpleasant consequences may result. However, it’s not inevitable that people will need to suffer these consequences because they can obtain a property tax loan. If they procrastinate and refrain from applying for a property tax loan, they could lose their homes.

The Possibility of Foreclosure

Homeowners who have not paid their property taxes have lost their houses to foreclosure. Tax assessors do not have to wait for any pre-determined amount of time to pass before they take legal action against homeowners. They can begin legal proceedings the day that property taxes become delinquent. Since the deadline was January 31, those who have not paid their property taxes yet are in danger of receiving a summons to appear in court.

Once the county takes legal action, homeowners may wish to hire a lawyer to represent them. This will require that they spend money that they may not have, and it will add to their current financial difficulties. If it is determined that the amount of money that county officials say they are owed is correct, the county will prevail. The next step will be for the county to sell the house in foreclosure proceedings so that the property tax debt can be satisfied.

The Long-Lasting Effects of Foreclosure

Homeowners may need to pay expensive legal fees and will also lose their homes in this process. The foreclosure would be added to their credit reports, and their credit scores would decrease dramatically. They would have difficulties qualifying for a mortgage to purchase a new home, so the answer would be to rent. However, management companies for rental properties also perform credit checks, and they may turn down former homeowners who have low credit scores.

Accumulating Fees and Penalties

Sometimes, county officials do not act so quickly. In this instance, fees and penalties accumulate with each passing month. In the first month that people do not pay their property taxes, the bill increases by seven percent. A two percent interest charge is added every month after that. If after six months homeowners cannot pay their property taxes, they will be required to pay a 20 percent collection charge. The monthly interest rate will be one percent thereafter.

Allow Reliance Tax Loans to Help

Homeowners do not want to lose their homes to foreclosure or see their property tax bills increase by 44 percent of what they originally owed. They can apply for a property tax loan with Reliance Tax Loans to avoid the unpleasant consequences described above. They do not have to submit to a credit check, and they will not have to pay an application fee or closing costs. They may learn that they have received approval in the same day that they submit their applications and have their property taxes paid within three days.