Do you have unpaid property taxes in Raleigh NC? If so, the consequences can be very difficult to deal with. In our latest post, we will help you learn more about what’s at risk and the solutions available to you!
Depending on where you live in the Triangle, the amount of property tax you pay can vary widely. In North Carolina, the county assessor comes out once every eight years to assess the value of the property for tax purposes. The homeowner is then taxed based on this value assessment. This is also known as Ad-Valorem taxes.
Ad-Valorem (latin for according to value)
Once you get behind, the penalties and fees will start compounding, making it a very expensive problem to fix!
What Can Happen?
The worst case scenario is the county will foreclose on your home and take it away from you. The property will then be sold at auction to pay the back taxes, interest, and penalties. There are people that specialize in purchasing tax liens. It can be very scary if it comes to this and you have to worry about losing your home.
The process of foreclosure for back taxes does not happen overnight. There are grace periods that last a few months to give you time to pay your annual tax bill. Most Triangle homeowners get blindsided when they let the tax bill sit in default for over a year and all the interest and fees start to accrue.
What Can You Do?
There are a few things you can do when you are faced with unpaid property taxes. The easiest was it to pay the taxes on time. If you are behind you’ll want to call the county and get the payoff amount so you know what is owed.
If you think your assessed value is too high you can challenge the assessment. Each county in the Triangle NC has its own website, Wake County, Durham County, and Orange County (Chapel Hill). Visit your counties website for more information on challenging a tax assessment. The benefit of a lower assessed value will be a lower tax bill at the end of the year. Getting them lowered isn’t always easy. Make sure you have accurate and up to date information about the homes that have recently sold in your area.
Before your unpaid property taxes get out of hand, do everything you can to resolve the situation.
Paying back with a loan
You can pay them back with the help of a loan. While this might seem like you are replacing one debt with another, having a monthly payment instead of a lump sum may be a good option for you, especially if you are on a fixed income. Keep in mind, you will also likely have fees and penalties that have been added on to your original debt. The entire amount must be paid off in order for the county to remove the lien on your property.
Sell Your Home Directly
A great way to get away from the burdens and consequences of unpaid property taxes is to work with a buyer who will help you to resolve the lien. The team at Otranto Real Estate Co – Mike Buys Houses will help you evaluate your situation and the solutions available to you. Often times, we are able to help you take care of the lien when purchasing the home. This will allow you to sell the property and walk away unscathed. Property tax problems do not have to mean that you will lose your home. There is a way out!