by Rod Williams
Often people who are behind on their
mortgage are also behind on paying their taxes if the taxes are not
escrowed. You do not want to lose your home due to unpaid taxes. Here
is how the payment of property taxes works.
due in arrears. That means, you are not paying your taxes for the
upcoming year but for the year just past. The tax year is the calendar
year. The tax bill for 20011 is mailed out in October 20011 and are due
by February 29, 2012. After that date a penalty of 1 ½ % interests is
added. The Trustee’s office holds the tax bills until March 1, 2013. Up
until that time, the taxpayer, may go to the Trustees office and pay the
taxes and the accumulated interest. After that March 1 date the tax
delinquency is referred to Chancery Court. The Clerk and Masters office
handles the taxes at this point. Metro will have filed a legal action to
sell the property for back taxes prior to that March 1 date.
March 1st, the Clerk and Masters Office will send out a notice to
delinquent property owners saying they have 30 days to pay the
delinquent tax lien or it will be sold. THE TAXPAYER MAY PAY THE AMOUNT
OWED anytime before the sale and the lawsuit will be dismissed.
(Cashier's Check). After the March 1 2013 date, additional court cost
and legal fees are added. There is a title search that has to be done
and other legal procedures prior to the Sale. So the first time it would
be sold is June, 2013, but it could be later. There is usually one sale
per month from June to December. The sales are advertised in our daily
paper, THE TENNESSEAN, approximately twenty (20) days prior to the
The owner may redeem the property up to a
year after it is sold for back taxes but there is an additional fee of
10% per year to redeem it. Also, the person redeeming his home may have
to make payments to the buyer for cost incurred.
tax lien is the first place lien on a property, meaning the city gets
their money before any goes to a mortgage company, so if a client is
late on their taxes, the mortgage company would rather pay the taxes
than let the property get sold in a tax sale. If a property is
foreclosed upon, the mortgage company would have to pay the taxes
anyway. If there is a mortgage on the property and it is sold at a tax
sale, the mortgage company is the likely buyer, but the owner would have
a year to redeem it. So, the mortgage company would rather pay the
taxes for the homeowner, which they may do, and then foreclose rather
than purchase it at the tax sale.
Few people who have a
mortgage on a property lose the property due to a tax sale. The
situation as described above is what usually happens.
know of no agency that will help you pay your property tax bill. One of
the requirements for the Hardest Hit Fund in Tennessee is that taxes
and insurance be escrowed. However, if one otherwise qualifies, it is
often possible to set up an escrow account at the Hardest Hit closing.
For more information call me, Rod Williams, 850-3453. There is never a cost for my services.
Monday, January 30, 2012
This is a video about short sells. Sometimes short sells are an option for avoiding foreclosure but they are the last option, not the first option. There is no need to watch this video or even consider a short sell unless you have explored all of your other option.
There is a great program funded by the the US government and administered by the Tennessee Housing and Development Agency (THDA) called "Hardest Hit Fund." The agency I work for is a partnering agency with THDA and I am the agencies Senior Housing Counselor. This program can pay your arrearage and make your payments for a period of time. This program may give you up to $20000- money that never has to be paid back. You do not pay any fee for my services or any application fees. This is a free program.
To learn more, Call Me
Rod Williams (615) 850-3453