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Property Tax Arrears

Did you know that by being delinquent on your property taxes, you could be putting your home at risk? Aside from the fact that municipalities rely on property tax dollars for schools, garbage collections, etc – you can actually have liens and judgments registered against you as a measure to get caught up.

Non Payment of Property Taxes Consequences

If you do get behind on your property taxes, the government will usually start by sending you reminder notices before hitting you with penalties and high interest rates as an incentive to get you to pay.

If you do get enough months behind, or by a significant amount, they can also register a tax lien against your home. This lien takes precedent over any other liens (including mortgages) and can even block the sale of your home unless the funds are paid out in full.

Can I Lose My Home in a Property Tax Sale?

Unpaid and delinquent property taxes can cause you to go in to foreclosure. Local governments have that ability to recoup their funds. Many times you can try to arrange payment plans, however if you are behind, you fall to their mercy.

In addition, being behind on your property taxes is usually a breach of terms if you have an existing mortgage. You are obligated to keep up to date, and if your lender gets notified you are behind, it can be an issue. But more pressing, if it is close to renewal time it could alter whether they want to keep you on as a client or are asking to be paid out. The key here is if you are in property tax arrears without permission to defer, then you should be looking at ways to square that up as soon as you can!

Can I get a Property Tax Loan?

Getting a secured mortgage to get caught up on property taxes can be a challenge. The key is to not scare your existing mortgage lender, keeping costs low and fair to you, while also preventing any of the very serious issues from above. Plan B Mortgages has been doing these types of loans for nearly a decade and we can absolutely help you work out solutions to get caught up. But also hopefully so when bills are due again, you are in a better position to pay them on time.

To get more information on how we can assist you, please call us at 604-464-0960 or underwriting@planbmortgage.ca