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Property Tax Question

2K views 10 replies 8 participants last post by  josantoro 
#1 ·
I am actually posting this question on behalf of my mother, who is not too computer savvy!

As typically happens, the property taxes where we live are going up again this year. Mom is a widow and she's been struggling (I do help her when I can).

Last night she told me that she may have some trouble with her property tax payments. There is $1600 due on August 1 and she may only be able to pay $800. She says she will be able to pay the balance in September, but that she may be behind again when taxes are due in November.

We know that she'll be charged interest on the balance due, but if she pays the balance a month late, can she lose her house?

Thank you!
 
#2 ·
~She should take her dilemma directly to the tax office. Many people qualify for frozen or reduced rates and extensions based on age, health, military service,fixed income amounts, etc. It really depends on the district. Be sure she takes all relevant documents to present for her case.
If the district cannot help her it is in her best interest to get a reverse mortgage, sell the house or take on a boarder. She can no longer afford the house she's living in if they won't get her a reduced rate.
Write letters to the papers and local government officials about the situation. Things may not change fast enough for your mom but may help other seniors in the same position down the road.~
 
#5 ·
If she makes partial payment it's up to the township but generally they give you some time.

She has a home equity loan - can she draw on it? Between owing on taxes and owing more on the loan, I'd move the debt to the loan in a heartbeat.
 
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#7 ·
Here's the thing. If she's behind on taxes, the town/city/county/state/gov't has a lot of power. I'd rather she open a new loan and pay the taxes, then pay the loan.

She owes the money either way - but a new loan can't take the house. The Government *can*.
 
#8 ·
I'd check with your tax authorities and find out how things work. Where I live, taxes are due December 31st. I'd say for the past 5 years I've paid late, almost 3 months late. Yes I paid interest, but I just don't have that kind of money on December 31st. I pay it when I get my tax return in the spring. Here I think they start bugging you when you are 1 year behind. Until then, they leave you alone. But check with your city/state, whoever does the taxes and find out what they do.

You might also check to see if there is some kind of assistance program for senior citizens. They may have a payment plan or a way to reduce taxes.
 
#9 ·
Typically you have to be behind on your taxes a year or more for them to take your house. She'll typically get notices or at least there will be notices in the newspaper. There are usually last minute opportunities to pay the taxes due before the sale.

Some communities give you financial relief on the taxes by putting a lien on the house. When she sells, she'll pay back taxes out of the proceeds of the sale. Don't count on that, she needs to pay her taxes. She also needs to check to make sure that she is getting the homeowner's exemption. In some places you have to file the exemption every year. If her husband was the one doing the filing and she is a recent widow, she might not have realized that she needs to do it - and thus, is paying more taxes.

If she signs a financial power-of-attorney, you may be able to speak on her behalf and ask the tax office for more details.
 
#10 ·
I don't know where you live, but here you can go to the county and apply for no taxes. My parents did that. They are on SS and paid no taxes on their property for 6 years before they finally sold it. If not maybe they can do a payment plan. It might be easier for a monthly payment then to come up with a lump sum every 6 months. Good luck.....
 
#11 ·
Can you hint what state she is in? Maybe someone from that state would have more info.

I don't think gov'ts are as quick to take a house as a bank would be. But if this is going to be an ongoing problem, she is better off to get out now and into a more affordable place.

In my state if you are low income (and the state defines that as less than $60,000 a year!!) your property taxes can not exceed a certain proportion of your income, on your homesite (house and 2 acres). If they do, the state kicks in the difference.

Contact the Council on Aging in your area, they are very helpful and will know if there is some relief program for her.

Good luck and (((hugs))))
 
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