subject: Falling Home Prices Have Little Impact On House Taxes [print this page] Several homeowners have been taken by surprise when the value of their home suddenly seemed to hit freefall. It would definitely appear as though there ought to be one advantage to dropping home costs; however. Several homeowners assumed that when the worth of their homes fell, their house taxes would as well. This has not been the case in many areas; nevertheless.
In some cases; homeowners have been shocked to discover that not just have their house tax bills not decreased, they've really increased in some cases. This has been fairly a shock for homeowners as they struggle to understand why they're having to pay much more in taxes on homes that aren't worth as a lot as they were only a year in the past.
The reason for this relates to the complex manner in which property taxes are calculated in many areas. One of the greatest problems, especially in Nevada, is the fact that house tax increases were capped throughout the housing boom. During this time home values skyrocketed rapidly. Today, the values of homes in these same areas are falling; nevertheless, the decreases have not really been sufficient to compensate for the increases of only a few many years in the past. Consequently, the values of homes would need to decrease sharply more than a brief period of time in order for house tax expenses to decrease. While declining property values have definitely been a issue, they merely haven't decreased sufficient in many areas to provide any relief from house tax expenses.
As the charge of defaulted loans and foreclosures continue to soar in lots of locations, many counties have discovered that the charge of unpaid properties taxes is also around the rise. The metro Detroit region, in particular, is experiencing a record high rate of unpaid property taxes. Detroit is presently considered to be one of the worst real estate markets in the United States based on the decline of housing prices and increase of foreclosures. The lack of jobs and weak economy in the higher Detroit region are considered to be the primary factors contributing to the housing crash within the area.
Even if property owners are paying their monthly mortgage payments on time they could still be at danger for losing their properties through foreclosure if they fail to pay their property taxes for 3 years in a row. In such scenarios, the county would then take control of the home and auction it off to spend the balance of taxes owed. Counties in the Detroit region are currently struggling to recoup hundreds of millions of dollars in unpaid property taxes. The issue has had significant repercussions on counties in the higher Detroit region.
House owners who find they're behind around the property taxes can take some actions to stave off foreclosure. The first step is to start making payments on their taxes. Several homeowners make the mistake of thinking they are doomed if they can't pay off all of the taxes owed and thus pay absolutely nothing in any respect. Maintain in mind that making any payment, even if you can't pay all of the taxes, is better than having to pay absolutely nothing in any respect. If you aren't in a position to pay all of the taxes; at least try to spend off your oldest taxes initial. Remember that taxes which remain unpaid for 3 years consecutively places you at risk for foreclosure. Pay off the oldest taxes first to combat this risk.
You may also check with your county to determine whether you may be eligible for an extension for property taxes which are unpaid. In some situations, the county treasurer might be able to grant you an exemption for your taxes if you are able to demonstrate extreme hardship. It's greatest to do that as early as feasible; nevertheless, as there are commonly deadlines for the exemption applications.
Additionally, verify with your mortgage loan business or bank to discover whether they offer any kind of program or loan that can provide you using the money needed to cover your taxes. It is by no means in the best interest of the bank to have the county take over the property, so they're often prepared to work using the homeowner to avoid having this occur. Maintain in thoughts; however, that when you do this will you will probably be taking on an increased debt burden.
