24 Sep What to Do If You Can’t Pay Your Property Taxes
Tax season has reached a strange point right now. It seems to be coming to an end – but in truth, it is only getting worse. The government is not giving homeowners any breaks, which means that they have to open up their wallets. And the problem is that barely anyone ever gets a refund.
If you see that you can’t stick to paying your property taxes, you need to take it as seriously as possible. Not only will this affect your credit score, you could end up losing your house.
If you already are in such a bad situation, here are a few tips that may be able to help you out.
- Keep Filing Your Taxes
You may be in an inability to pay your taxes – but this does not mean that you have to stop filing them. Regardless of your situation, you need to take action. If you do not file your return, you risk getting a failure-to-file penalty – which can cost you 5% more of your tax, until you pay it. Depending on how long you leave it unfiled, you can reach 25% more of what you actually owe.
You don’t have to pay the tax if you file for it – and yes, you will still receive a penalty. However, if you file it, the government will only enact a 0.5% penalty of what you owe.
- Pay What You Can
You may not be able to pay for everything – but that does not mean that you should not pay anything at all. Your lenders do not want you to default on your property payment, so try to see if you can negotiate a payment plan. This way, you can chip away at your debt while making payments you can actually afford.
- Be Proactive
The sooner you address the situation, the quicker it will be for you to resolve it. Sure, you may be in debt – but this does not mean that you have to let it all bundle up. The more you leave it unattended, the more penalties you will receive – and there’s a great difference between addressing it right away and addressing it a few months later. Many homeowners who cannot pay their taxes end up talking to Piper Properties group about selling your home for a fair price.
So, instead of avoiding the problem, try doing some research on how to fix it. Talk with your financial advisor or some tax professionals – and do your best to find a solution for it. Technically speaking, if you show your interest and prove that you actually want to fix this problem, they will be more open to helping you out.
Taxes are taxes; they have to be paid, no matter what. You may not be able to pay them completely – but you need to show that you are willing to do so. Be correct and address the problem as quickly as possible.
If needed, ask your lender to lower your loan repayments so that you can take care of your taxes.