Do they still have to pay property taxes? and if they do, do they get penalized for not paying them when the house first got paid for?
2007-08-11 07:22:49 · 7 answers · asked by janu014 1 in Business & Finance ➔ Renting & Real Estate
Yes no matter where you live you have to pay property tax. As for getting penalized for not paying the tax the county would have sent a notice telling you that your taxes have not been paid. Unless your paying for you taxes through the mortgage company. If you're paying taxes through escrow accounts I would keep a really close eye on it. Because mortgage companies don't like to pay the taxes and insurance. That's what happened to my parents. If you really want to make sure the taxes get paid, I would do it myself. In the state of Texas the taxes are paid in arrears, which means you pay that years taxes at the end of the year. So at closing unless negotiated both the seller and the buyer pay insurance and taxes. If your parent did not pay for taxes at closing then the seller probably paid the taxes at that time. Again in the State of Texas if you are over the age of 65 your property tax rate is frozen until the house changes hands. Or your parents sell their home and buy a new one.
2007-08-11 08:26:18 · answer #1 · answered by Cookie Girl 3 · 0⤊ 0⤋
Everyone has to pay property taxes and if they aren't paid the are applied as a lien on the property and accrue interest each year (often 12%). Sometimes properties are recorded with a homestead exemption which exempts the owner from part of the tax, but as the value of the property increases, the owner still is responsible for paying the taxes above the exemption. The homestead exemption is usually, but not always, only applied to the elderly (et. al) on a fixed income, and not even available in much of the country.
2007-08-11 15:00:03 · answer #2 · answered by linkus86 7 · 1⤊ 1⤋
Property taxes are totally separate from any mortgage. They must pay them or risk losing the property.
Many mortgage contracts call for a portion of the estimated annual property taxes be deposited with the mortgage servicing company as part of the mortgage payment but that is solely to protect the mortgage holder's interest. The property owner remains primarily responsible for the payment of the property taxes. Once the mortgage is paid off, the property owner will have to pay the taxes themselves directly to the tax collector.
2007-08-11 14:28:11 · answer #3 · answered by Bostonian In MO 7 · 3⤊ 1⤋
Yes, they still have to pay the property tax. If the tax isn't paid when it's due, there is a penalty, but they don't have to pre-pay the taxes. Tell them to check into a "senior" tax break if they are over 60 years of age. Also, tell them to pay those taxes immediately if they are delinquent. The house could be sold at a "tax sale" and they'll be out of luck!
2007-08-11 14:28:31 · answer #4 · answered by Cheryl G 7 · 3⤊ 1⤋
Property taxes are Forever !
The bill comes every year and has nothing to do with being paid for (except if you are still in mortgage , the lender will collect them and put it in escrow until the payment due date )
After that , the homeowner pays directly , every year .
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2007-08-11 14:30:10 · answer #5 · answered by kate 7 · 1⤊ 0⤋
Even though they may not have a mortgage on the property, property taxes have to be paid each year. If they don't the county will foreclose and they would lose the house.
2007-08-11 14:28:39 · answer #6 · answered by Alterfemego 7 · 4⤊ 1⤋
everybody that owns property has to pay property tax.
nobody escapes the tax man.
if you do not pay taxes, a lien will be placed onto the property and the property may be auctioned off.
I would go to you tax accessor and see how much back taxes they owe...they may want to take out a loan and pay it off.
good luck :)
2007-08-11 14:29:41 · answer #7 · answered by Blue October 6 · 2⤊ 1⤋