Avoid These 3 Dire Consequences of Delinquent Property Taxes

Published by Research Editor on July 25th, 2011 - in Tax Penalties, Taxes

With high property taxes and a wobbly economy, delinquency in property taxes–or a high risk of delinquency–is becoming more common. Ignoring the bills won’t make the problem go away; in fact, it only makes it worse. Serious consequences of not paying property taxes include:

1. Enormous penalties

The more you delay, the more you pay. You can pay up to 38% in fees and penalties if your property taxes are delinquent. For $10,000 in taxes, adding on fees and penalties means you could end up paying $13,800. That’s almost $4,000 of unnecessarily wasted money.

2. Lawsuit

Any time after your taxes are delinquent, the Texas Tax Code states that you can be sued by your taxing unit. If the suit is successful, you get to pay all the court fees on top of your property taxes, fees, and penalties.

3. Foreclosure

Not paying property taxes gives the government power to take away your property in foreclosure. According to the Texas Tax Code, “On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property.”

Is all this doom and gloom necessary? Most definitely not! Getting a property tax loan eliminates these consequences–no more wasted money on fees and penalties, no threat of lawsuit from your tax collector, and no worries about foreclosure from your tax unit–and allows you to pay your property taxes in the most convenient way possible.

If your taxes are delinquent–or close to it–consider a property tax loan to avoid these dire consequences.

© 2013 FYP, LLC.