Are you behind on your property taxes?
It happens to more Michiganders than you might think, and often through no fault of their own. An unexpected financial crisis (hello, COVID-19), job loss, divorce, or serious medical issues are some of the most common reasons we’ve seen. Unfortunately, taxing authorities are not typically sympathetic.
As soon as you fall behind on property taxes, the local taxing authority will begin adding interest and penalties to your account, so unfortunately the balance will continue to increase, digging your financial hole even deeper.
Not being able to pay your property taxes is scary because it means you could lose your home, and we all need a roof over our heads. But whatever you do, do NOT ignore the problem.
Here are a few things you can try that could give you a little breathing room.
Set Up a Payment Plan
Some taxing authorities will work with you and allow back taxes to be paid in installments. You will have to prove your financial hardship, and interest may still accrue.
Apply for a Loan
Loans may be available from banks, and there are also property tax lenders that specialize in this very issue. But be aware that they charge very high interest rates. Before you commit, weigh multiple loan options, do the math, and make sure the loan terms won’t put you even further behind.
Request an Abatement
You may be able to request an abatement due to economic hardship. An abatement forgives the debt without requiring repayment, so if you can get approved it’s a really good option. You will have to provide proof that your income and other financial resources only meet your basic living expenses. However, if there is enough equity in your property to satisfy the tax debt, you may be denied, requiring the sale of the home.
If none of the above have worked for you, it might be time to sell your Metro Detroit house. Give Mitten Made Properties a call at (248) 883-3340. We’ll make you a fair cash offer – with absolutely no obligation – and we can close quickly to help get all this cleared up. We even pay the closing costs. It’s worth a phone call to see how we can help!