Avoiding Property Tax Foreclosures for Older Adults

If you are a homeowner who is falling behind on your real estate taxes, you may end up facing foreclosure on your property. Because your property taxes hinge on the value of your property, you may find your taxes rising beyond what you can afford. Before your situation becomes more serious, be sure to educate yourself. Get a better understanding of the laws regarding tax foreclosure – as well as where you can turn to get help.

Tax foreclosure laws in each state permit liens against real estate, unpaid taxes, as well as property sales to collect on liens. These laws vary in each state, but there are similarities. In general, states assess taxes based on estimated property value, and tax bills are due annually.

If you fail to pay your property tax bills on time, your property could be subject to a tax lien. By placing a lien on your home, the government is in essence securing your home as collateral. This then allows the tax collector to auction or sell your home, if necessary, to pay off your tax debt.

Lenders normally insist that homeowners pay their real estate taxes through an escrow account. This helps the property owner set aside the funds monthly, prior to the annual tax bill due date. In many cases, older homeowners no longer have mortgages on their homes. If they are on a fixed or limited income and don’t budget for the funds, they may have trouble making the payment.

This is why many seniors who own their homes commonly end up in the tax foreclosure process.

Learn more about how you can steer clear of the risks of tax foreclosure.

If you have questions, give us a call at (605) 275-5665.