Do you have unpaid property taxes in New Jersey? If so, the consequences can be very difficult to deal with. In our latest post, we will help you learn more about what’s at risk and the solutions available to you!
Depending on where you live, the size and value of your home, property taxes can become a huge burden. Once you get behind, the penalties and fees will start compounding, making it even more difficult for you to get out of the hole you are in.
The worst case scenario? You could lose your home. You will likely incur penalties, fines and interest should someone buy the tax lien on your home. When you fail to pay your property taxes, the government will put a tax lien on your property until the balance
has been paid off. If the debt remains unpaid, the city will auction off the lien to the highest bidder. At this point, you must pay the bearer of the lien the back taxes, plus fees, plus penalties and plus any interest the tax lien bearer has decided to impose.
If they are not paid within an agreed upon time, they have the ability to foreclose on your house and take ownership themselves. There are people that specialize in purchasing tax liens. It can be very scary if it comes to this and you have to worry about
losing your home.
There are a few things you can do when you are faced with unpaid property taxes. You can pay them, have them lowered or work with a buyer who is willing to help you out of the hole you are in. Nobody wants to lose their home, especially to a complete stranger.
Before your unpaid property taxes get out of hand, do everything you can to resolve the situation.
You can pay them back with the help of a loan. While this might seem like you are replacing one debt with another, having the peace of mind that you aren’t going to lose your home, sometimes makes it worth it. Keep in mind, you will also likely have fees and
penalties that have been added on to your original debt. The entire amount must be paid off in order for the county to remove the lien on your property.
You can choose to reach out to the property appraiser to have your property reassessed. Examine your tax bill and the amount you have been assessed. If you feel that they have the information on your home incorrect or that the amount you are being assessed is
too high in comparison to other homes in your neighborhood, you might be able to secure a lower assessed value. Getting them lowered isn’t always easy. Make sure you have accurate and up to date information about the homes that have recently sold in your area.
A great way to get away from the burdens and consequences of unpaid property taxes is to work with a buyer who will help you to resolve the lien. The team at The Cardwell Thaxton Group will help you evaluate your situation and the solutions available to you.
Often times, we are able to help you take care of the lien when purchasing the home. This will allow you to sell the property and walk away unscathed. Property tax problems do not have to mean that you will lose your home. There is a way out!
First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You're thinking, "I inherited a house, what to do with this house?" Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but...
... we can help.
We’re seasoned investors in New Jersey real estate, and we're looking to buy several houses each month in New Jersey. Every month we get calls from those who have inherited a house and are looking to sell the house... so the info below are some
tips to help you navigate the process.
Here’s a few important considerations to help you make the right decision:
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had
no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify
for a new loan, renting may not be an option for you.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it
for extra income. That's a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry.
We buy New Jersey houses for cash, as-is.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better
to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our NJ investment experience can help
We’ll help you determine prices for any property - if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).