Need Help Paying Property Tax? 3 Options

If you need help paying property tax, options you can try include requesting a tax abatement, applying for a deferment and paying the tax through your mortgage lender.

1. Tax Abatement

If you own your home and cannot pay your property tax because of low income, you may be able to have
all or a portion of the taxes forgiven by your town, city or village. Most municipalities have boards of abatement made up of their citizens. These board members decide whether to grant homeowners' requests for relief from property taxes.

To request a tax abatement, go to your city hall and speak with the town clerk, explaining why your financial situation makes it impossible for you to meet your tax obligation this year.

Generally, you will be required to submit a written request and provide financial data to back up your claim of
hardship. You may have to attend the board meeting and make your request in person, or the board may meet privately and let you know its decision.

2. Tax Deferment

Some municipalities or states offer a deferment program for those facing financial hardship. This is a low-interest loan program designed to assist homeowners in paying property taxes.

You can defer your taxes as long as you own your home. If you sell your home, the outstanding tax bill becomes due. You must have a set percent of equity in your home. This percent is determined by each state.

To apply, contact your state tax assessment office or your municipal clerk to request the necessary forms. You will then submit the completed forms and await a decision.

3. Pay Property Taxes through Your Lender

Your mortgage lender does not want to see your taxes go into arrears; therefore, it may be willing to work with you. The lender can set up a tax account whereby each month you pay a small percentage of your yearly property taxes.

This works well for tax obligations that are not overdue, but for any delinquent property taxes, you will have to discuss whether the lender is able or willing to help you pay them through a small loan.

blog comments powered by Disqus