Property Tax Arrears
If you have property taxes in arrears, there may be severe consequences. In fact, local municipalities rely on homeowners to pay their tax bill on time to fund their budgets.
Most importantly, local governments collect property taxes to fund essential services like schools, garbage collection, snow plowing and even local law enforcement.
Non Payment of Property Taxes Consequences
Unsurprisingly, once you become delinquent on your property taxes your local government will start trying to recover their money. For example, they will apply significant interest and penalties to try to motivate you to pay.
Secondly, the town or city will register a tax lien attached to your home. To clarify, a tax lien or tax arrears certificate as it is often called prohibits the sale of your home unless your property tax arrears are paid. Above all, a property tax lien takes priority over all other liens secured by your home.
Can I Lose My Home in a Property Tax Sale?
So, if you have unpaid taxes on your property you will quickly learn how powerful a municipalities collection powers are. Namely, you will find out that the government can foreclose on the property in a municipal tax sale.
Frequently, when a local government has exhausted its options, they will attempt to foreclose on the property for which taxes are owed. But most homeowners will try to arrange payment plans with their municipality. Unfortunately, this doesn’t mean that your home is safe from power of sale or foreclosure, as there is another major area for concern.
Moreover, your current mortgage lender should be cause for concern. In addition to making your mortgage payments on time, your current mortgage lender will mandate that you keep your property taxes up to date.
Specifically, if you fall into arrears with your property taxes, your lender can refuse to renew your mortgage. Additionally, they may even pay your property tax arrears for you. However great this may sound, it’s not. In other words, your current mortgage lender will demand repayment immediately as these are an out of pocket expense to them.
To sum up, there is almost no situation in which it is ok to have property tax arrears. As a result, it is important that you find a way to take care of any unpaid property taxes quickly.
Can I get a Property Tax Loan?
Property tax loans aren’t easy to secure. Particularly because most mortgage lenders don’t want to take on someone else’s headache. But, there are lenders that will approve mortgage refinancing and home equity loans to consolidate property tax arrears.
Most importantly, you have to find a mortgage broker who specializes in these types of secured loans. Otherwise, you will waste valuable time and find yourself in a worse situation.
Turnedaway.ca, as the name implies, specializes in helping property owners who are facing challenges get approved. In fact, we focus on helping consumers who are struggling with:
- Property tax arrears and tax arrears certificates
- Mortgage arrears
- Power of Sale & foreclosure
Certainly, having property taxes owing is not an ideal situation but there are options to help you protect your personal property.
Can’t Pay Property Taxes? We Can Help!
Turnedaway.ca has been arranging secured property tax loans for over 30 years. Although our name has changed our solutions haven’t because they are effective.
In short, if you are facing a municipal tax sale, have property tax arrears or your bank is refusing to renew you, make Turnedaway.ca your first call. We offer free phone consultations 1-855-668-3074 or simply apply online and get an approval in as little as 24 hours!
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