How To Fight A Property Tax Foreclosure

Have you ever wondered how to fight a property tax foreclosure? Surprisingly, many homes are lost due to inability to pay the property tax. Missing one payment and then the next payment and accrued late fees can place a homeowner in deep trouble. Learn more on how to fight a property tax foreclosure.

  1. Prevention. The first most obvious way to avoid a property tax foreclosure is to not wait too long to rectify the situation. When notices start arriving in the mail, act. Although most homeowners don’t realize they can truly lose their home to avoidance of tax, it will happen.
  2. Have the Property Reassessed. As property values fall all over America and the world, so should the value of the tax owed. Why should you pay tax on a million dollar home when it is now worth $200,000? By contacting the county assessor’s tax office, you can request a reevaluation.
  3. Appeal the Assessment. If after the assessment is done and you are not satisfied with the results, you can appeal the decision. In most cases you can appeal up to 45 days after the assessment.  It is your right. You can fight better with comparable home sales in the area and a documented home appraisal.
  4. Tax Lien. Once a tax lien has been placed on your property, a notice is sent to you and your mortgage company. The mortgage company may pay the tax lien and send you the bill. Why?  Because tax liens are superior to the first trust deed. Taxes go with the land, so even if the prior owner owed the tax, you will have to pay the bill.
  5. Failure to Pay the Tax Bill or Lien. Now the mortgage company has paid your tax bill and have the right to foreclose the property if you fail to pay the tax. You must rectify the situation or risk losing your home through a property tax foreclosure. 
  6. Selling the Home. One way to fight a property tax foreclosure is by selling the home and having the taxes paid through escrow. The title report will state that there is a tax lien on the property and will have the escrow company collect all back taxes from the proceeds of the sale of the home.
  7. Refinancing the Property. By refinancing the property, you can also avoid a property tax foreclosure. As long as your credit is in tact and the home will appraise, then homeowners can save their home.
  8. Taking out a Home Equity. By applying for a 2nd trust deed or home equity line of credit, you can save your home from a tax foreclosure. Many times the homes with tax liens are due to emotional avoidance of the debt, not always unemployment.
  9. Credit Card Help. As a last result, you may take a cash advance on your credit card to pay off the tax lien. The rates of interest are very high on most credit cards, but it is better than losing the home.
  10. Redemption Period. If all else fails and the home goes to foreclosure due to the tax lien being placed, in most states there is a right of redemption for the homeowner. The homeowner is given a set amount of days to pay the back taxes, interest, late fees and commission to the lien holder. Fighting a property tax foreclosure is a lot easier than a regular foreclosure in most cases.
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