The 5 Nightmares of Selling a House with Back Taxes in Philadelphia
Selling a house can be a bit of a burden within itself. Now, take that stress and add it to the terror of selling a house with back taxes in Philadelphia.
You’d rather not, I’m sure, but it is a reality that many face. The unfortunate part is that there are many people that are facing the horrors of selling homes with back taxes in Philadelphia and do not have a full scope of what to expect.
An insightful read found on SFgate.com goes into details about the consequences of not paying property taxes. Philadelphia civil litigation defense attorney, Carrie Ferland outlines the 5 nightmarish truths about back taxes and your Philadelphia home.
Ferland explains that monthly interests on failed taxes are almost inevitable, and they typically compound. With that being said, you can expect to owe interest on the interest that’s already attached to your bill.
Interest is simply the beginning of your worries when selling houses with back taxes. There also runs the possibility of added penalties, such as late fees, collection fees and administrative fees used for collections and processing purposes.
This act of penalty is one of the worst. However, it’s important to understand that it could be a reality when selling a house with back taxes in Philadelphia. Ferland explains that this extends further than an individual’s salary, but other earnings and assets that can be garnishes includes: checking or savings accounts, inheritance, winnings, social welfare benefits, and alimony payments.
4. Tax Liens
Garnishments are bad, but tax liens are worst. Not only do they prevent the possibility of refinancing, they also supersede any mortgage in place against the property. In addition, in the event the home is sold, all monies gained will be immediately applied to the outstanding tax bill.
The most recent market crashed gave us an insightful glimpse into the horrors of foreclosure. Unfortunately, it’s one of the things that can be expected on the worst end of the struggles associated with selling a house with back taxes in Philadelphia.
The municipality notifies your lender upon failure to pay the taxes on a property, especially if there is a tax lien against the home. Generally, your lender will pay off overdue taxes, but now you are responsible for the repayment to your lender, failure to make those payments could result in a foreclosure on your home and it being offered up for public auction.