Sadly, we could see another rise in Long Islanders losing their business properties and homes this year as the financial pressure increases.
It may appear that the economy and property market has performed very well in the wake of the COVID crisis. However, it may only be now that the real aftermath of lockdowns, restrictions and new policies really kick in, and show up.
The Dire Consequences Of Falling Late On Property Taxes
Falling behind on annual property tax bills can be a slippery slope, and financial hole which is very hard to climb out of.
Once you become late a tax lien is placed on your property, and is publicly auctioned off to investors. This may add 18% interest to your bill, along with other fees and penalties. It makes it even harder to catch up.
Many end up losing their properties for less than $100 because they miss out on notices or small fees they don’t know are there when they finally pay their bill.
If you still can’t catch up investors can force foreclosure on your property, or it is auctioned off for as little as the outstanding tax lien.
Some counties have found this to be one of their best performing and most profitable businesses. Seizing properties for small amounts of taxes, and reselling them to investors at a huge profit.
Mounting Financial Pressure
Many more property owners may fall late on property taxes this year for a variety of reasons.
One of the most obvious is continued increases in taxes. Not just property taxes, but income and capital gains taxes too.
Developers and big corporations keep on getting big tax breaks, which means everyone else has to pay extra to make up the difference, and pay for that.
Then there are interest rate hikes coming. That will increase all of your bills. If you have an adjustable rate mortgage, then your house payment is likely to go up too. That is in addition to insurances and utility bills.
Those hoping to refinance or downsize to smaller homes could find they are stuck due to new credit scoring changes. That includes incorporating buy now, pay later loans on credit reports which could impact 100 million Americans this year.
Hyper inflation is everywhere. It is evaporating any surplus income and savings property owners thought they had to get them through times like these. Even if gas prices double again as some experts predict, that will drive up all prices even further. It is also worth noting that the previous record high in gas prices came just a few months before the Lehman Brothers collapse and housing market meltdown in the Great Recession.
If you are feeling any financial pinch already, it is only going to get more intense. Now is the time to rework your finances, and to get your property tax bill reduced so that you don’t fall late.