Property taxes are the means by which a lot of things are run and funded. For Ex. Public Education, road repair, libraries and parks are all funded by property taxes. If people don’t pay their property taxes, the community as a whole begins to suffer and deteriorate. Essentially the quality of life in the community is negatively affected.
When you fail to pay your property taxes, you risk losing your home due to foreclosure. Once a home goes into foreclosure, you pretty much walk away homeless. Basically two things happen. Depending on your state and jurisdiction, either your home could be sold as a whole at a public auction or just the tax lien for the home could be sold. If the tax lien is sold, you typically have one year to reimburse the buyer of that tax lien. The reimbursement amount would be the amount the buyer paid for the tax lien plus an additional hefty percentage. Note that foreclosures can also affect your credit history, your savings and even your assets.
An option to consider when you are facing foreclosure is to sell your home and cut your losses while also making a profit, deriving at least some value from the unfavourable circumstances. I know … It sucks, but someone had to tell you.
The Big 3
Let’s elaborate on my 3 big reasons as to why it’s better to sell your home than go through the nightmare of foreclosure.
- It saves your credit history
In a society that places a lot of value on credit scores, it’s essential that you do nothing to put it in a detrimental position and that is precisely what a foreclosure will do. Realistically, a foreclosure and a short sale will both damage your credit score but if you do a short sale its better because you’ll be paying your debts and have at most a tax deficiency between the sale and what you owe to pay. You should also know that a foreclosure will be in your credit record for a minimum of 7 years, so why go through all that hassle? Selling your property while you still have the initiative is way better than having it snatched from you and suffering because of it. To save your credit score means you at least still have some means to live by and you’re not entirely helpless and homeless
- You get some money
Selling your house will help you pay back the money that you owe and often leave you with extra money to get you back on your feet. Not to mention it saves money because you don’t have to fork over dollars due to the harrowing ordeals of foreclosure.
- It avoids the harmful effects of foreclosure
To some homeowners, it would be easy for them to throw their hands in the air and give up without trying or thinking about the long-term effects it may have on them. But note that people who have their houses foreclosed often have difficulty finding jobs, purchasing other properties; buying car’s and even making big purchases. Not to mention the fact that there is a kind of stigma associated with foreclosure that you don’t want to be associated with.
Need more information? Contact me today as I have help many people avoid foreclosure and save money, time and energy dealing with this process alone.