Each state in the US charges a real estate tax, or property tax. This means that you must pay a certain percent tax based on the market value of the property that you own. These are often paid with monthly mortgage payments, but not everyone chooses to include the two types of payments in one. If you opt to pay separately, the municipality sends a bill for your property tax on a quarterly basis.
If you have ever been in financial trouble, you understand the difficulty of making ends meet. Often, something has to be sacrificed, and it can be difficult deciding what. Many people make the mistake of skipping their property tax for one or more months, since they view their mortgage payment as their home security, and they only have one car payment, etc. If you don’t pay your property tax, your municipality will begin by charging interest and late fees. If you don’t pay for an entire year, then your debt is increased to the point where your home may be repossessed, either by a tax lien or a foreclosure.
If you reach this point, you still may be able to achieve tax resolution with the help of a tax attorney, but it will be difficult. Even if you do find successful tax help, your credit will still be damaged severely for a minimum of ten years.
Make sure you think twice before skipping your property tax, and speak to an attorney for suggestions as to what you can do to cut down before your fees and penalties build up.