What Happens If You Don't Pay Your Property Taxes?

 

Paying property taxes is a legal obligation that comes with owning property in Long Island. Property taxes provide funds for critical services, such as schools, public safety, and infrastructure improvement, that benefit everyone in the community.

However, life can sometimes get challenging, and paying your property taxes can slip down the priority list. Understanding what happens if you don't pay is essential, as there can be serious consequences.

1. Penalties and Interest

If you don't pay your property taxes on time, the county will impose penalties and interest charges based on the amount of taxes due. The longer you wait, the more you will owe. Make sure you're aware of any deadline dates or regulations for your area.

2. Tax Lien Sales

Failure to pay property taxes for several years can result in the county selling a tax lien on your property. Tax lien sales are an auction where investors can bid on the right to collect the tax debt plus interest from the property owner. If a tax lien purchaser does not receive a payment within a specific timeframe, they can begin foreclosure proceedings.

3. Foreclosure

Foreclosure occurs when the county takes legal action to seize and sell the property to satisfy the unpaid tax debt. Homeowners who fail to pay property taxes and fall too far behind can face forced eviction and lose their property rights. Foreclosure is a lengthy process that can take years, but once the home is sold, they lose all equity and must vacate.

4. Property Seizure

If you don't pay your property taxes for an extended period and the county forecloses on your property, all your personal property inside your house may become the county's property. The county may sell your belongings and keep the proceeds to pay back the unpaid taxes. Seizure is a drastic step, but it's entirely within the law.

5. Ruined Credit Score

Failing to pay your property taxes can also hurt your credit score. The county can report your unpaid property taxes to credit agencies and impact your credit report. It can be challenging to obtain loans, credit cards, and any other credit applications afterward.

Contact Us For Property Tax Reduction on Long Island

Are you feeling the burden of your high property taxes? We want to help. Here at P.T.R.C., Inc., we are determined to help our clients pay the lowest amount of property tax as required by law. Contact us today to see how we can help you save money and a headache.