Provided By: Joseph Cooper, P.A. Team Cooper Homes,
KW Classic III
352-874-5764 or 352-874-6449
If you don’t keep up with the property taxes on your Florida home, you could lose your house. First, the tax collector will sell the tax lien in a tax lien sale. Then, if you don’t pay the lien, the tax collector can sell your home in a tax deed sale. Add to that the devastating effects on your credit, it’s easy to see why this is a debt you need to resolve. This is a horrible situation, but something you can overcome. It can be very confusing, but let’s break it down.
Step 1: Find out how bad the situation is.
Before you do anything, you need to know how bad the problem is. That way you can make an informed decision.
First, contact the tax collector and request a payoff.
Next, ask the tax collector’s office when a tax auction could be scheduled. After all, it’s better to know about a tax auction ahead of time, rather than have it take you by surprise.
After that, ask the tax collector’s office what interest rate you are currently paying on past due taxes. In some cases, you may be paying a very low interest rate.
This is because the interest rate is auctioned – with the winner being the person who is willing to accept the lowest interest rate. The interest rate can be auctioned as low as 5%.
Then, ask them if there are any other fees and costs you will have to pay if you do not pay off your property taxes right away.
Step 2: Review Your Options To Resolve
Your Delinquent Property Tax Bill.
Option 1: Get a loan and use the proceeds to pay off your property tax bill.
However, before you get a loan, check the interest rate that you are paying for your property taxes.
If you don’t have good credit, then it may be preferable to pay 5% interest on your property taxes, versus the 18% interest charged on a loan. The biggest caveat to this is any penalties or other fees that might be charged to you.
- For example, in some states, if you do not pay your property taxes by the due date, then a 10% delinquent penalty is assessed right away. If it isn’t paid by April 10th, then an additional 10% penalty is assessed. After July 1st, you will be charges 18% interest, because some states do not hold Tax Certificate auctions. Florida does. You’re interest rate could be as low as 5%.
- You may also have to pay other fees and penalties. The tax collector may charge a fee on the tax certificate auction. They may charge a redemption fee.
- These fees may be more expensive than paying a higher interest rate.
Option 2: Re-finance your mortgage and use the proceeds to pay off the property taxes.
Contact your bank about refinancing. In addition, get quotes from other lenders. Shop around for a loan with the best terms for you. You might even be able to obtain a loan with a lower interest rate than what you are currently paying and save money on your monthly payment.
Option 3: Repay your taxes with a payment plan with the Tax Collector.
Some tax collectors will allow you to repay the amount you owe with a payment plan. Some won’t. It depends on the laws and rules for your area.
Contact your local tax collector’s office and ask them if a payment plan is an option. Compare the payment plan with your other options and pick the best option for you.
Option 4: Property Tax Abatement.
Some jurisdictions may reduce or completely forgive the amount of property taxes that you owe.
This will vary, depending on the jurisdiction and your circumstances. Contact your local tax collector’s office and ask them if there are any abatement options available to you.
Option 5: Sell Your Property and use the sales proceeds to pay off your property tax bill.
This is a viable option for a lot of people. Home prices are high, and keeping your credit score intact is invaluable. If you want to consider this option, give me a call and we can discuss in detail. (352) 874-5764.
Be careful if you receive an offer from a stranger when your property is not for sale.
Before you sell to them, check that you are not selling it for less than it’s worth. Many investors will mail you a letter saying they want to buy your property.
They will offer to buy it, even though it isn’t for sale. Now, it’s not a bad idea to look at offers from strangers. It could be a fair deal for you. You could possibly sell for a fair price and avoid paying a commission. But, don’t allow an investor to make money at your expense. Before you sign a contract; call me and I will give you the true market value of your home. I’ll be happy to do this free of charge.
Well, that’s all folks.
Please contact me if you have any questions or comments.
Sincerely,
Joe Cooper
Team Cooper Homes, KW Classic III
352-874-5764
352-874-6449
www.TeamCooperHomes.com