It happens to more people than you think, and often through no fault of their own. An unexpected financial crisis, job loss, divorce, or serious medical issues are some of the most common reasons we’ve seen.
- Set Up A Payment Plan – Some taxing authorities will work with you and allow back taxes to be paid in installments, but you will have to prove your financial hardship and interest may accrue.
- Apply For A Loan – Some banks, and property tax lenders will loan money to pay back taxes. The latter specializes in this type of lending but be aware they charge very high-interest rates.
- Request An Abatement – You may be able to request an abatement due to economic hardship. You will have to provide proof that there is only enough income to meet your basic living expenses. An abatement forgives the debt without a repayment required, so if you can get approved it’s a really good option. But if there is enough equity in the property to satisfy the tax debt, you may be denied, requiring the sale of the home.