If you are over 65 you can defer your property taxes until your house is sold. All you have to do is fill out some paperwork at the county tax assessor’s office. Not only will this defer all future taxes, but if you are currently behind on your taxes, it will stop all collection efforts, even if you’ve been sued or given notice that your house will be sold.
However, this is not for everyone. The county charges 8% interest on the unpaid taxes and they are secured by a lien on your home. If you were planning on using the equity in your home to buy a new home or to fund an inheritance for your heirs, the deferral will slowly eat away your equity, perhaps completely, depending on how long you let the deferral run.
If you have a mortgage, you should not do this unless your mortgage company approves. Most mortgages contain a provision that says you will not allow anyone to place a lien on your house that would interfere with the mortgage company’s lien. The deferral can put you in violation of this provision and your mortgage company may foreclose on the property or pay the taxes itself and bill you for them. If they pay your taxes, you will be in for a nasty shock, as they will bill you not only for the taxes they paid, but force you to make escrow deposits for next year’s taxes. Your mortgage payment could go up by hundreds or even thousands of dollars, depending on the size of your tax bill. Be sure to get written approval from your mortgage company before you sign any papers for the county.
Pretty nice post. I just came by your site and wanted to say
that I’ve really liked browsing your posts. Anyway
I’ll be subscribing to your feed and I hope you write again soon!
Thanks Sarah-
I took a break from blogging for a while, but the posts should be coming more regularly now.
Craig