| Most homeowners were stunned at the way the | | | | Detroit as far as the real estate crash is |
| prices of their properties crashed through the | | | | considered. |
| roofs. The only solace they thought they had was | | | | Even if a home owner is paying the mortgage |
| that they would have to pay less property tax, | | | | installments regularly, he may face foreclosure if |
| but most of them soon discovered that this was | | | | he fails to pay his property taxes for 3 |
| not to be. | | | | consecutive years. The county has the right to |
| Home owners have discovered to their shock and | | | | auction such properties in order to recover the |
| disappointment that there has been no change in | | | | outstanding tax amount. Counties in Detroit are |
| their property taxes and in fact in some cases | | | | thus facing the humongous task of recovering |
| they have to pay increased taxes. It bewilders | | | | thousands of dollars worth of unpaid tax. The |
| them that how can they be expected to pay | | | | accumulation of unpaid taxes has led to financial |
| more taxes on a property which has devalued. It | | | | destabilization of these counties. |
| is no surprise thus that most of them are | | | | Despite this depressing condition, home owners |
| struggling to understand this injustice. | | | | should keep hope and not despair. Even if you |
| The complex tax calculation methods are to be | | | | have missed out on your property taxes, you |
| blamed for this utter chaos. Most states have | | | | can take some simple steps to avoid foreclosure. |
| such contrived methods that the disproportion | | | | The first thing is naturally to pay your taxes. Most |
| between house values and property taxes is quite | | | | homeowners start to despair if they have missed |
| glaring. A simple example would be Nevada, where | | | | out on their tax payments, and stop paying |
| the property taxes were capped during the | | | | completely. This is the first mistake they make. It |
| period when home values were skyrocketing to | | | | does not matter if you cannot pay all your dues; |
| the sky. Though the value of these houses is now | | | | pay the amount you can manage. Always clear |
| seeing a downward trend, they have still not fallen | | | | the older dues, in order to avoid three |
| enough to be able to offset the previous north | | | | consecutive defaults, as that can lead to |
| bound price effects. If the homeowners want to | | | | foreclosure. |
| see any significant fall in property taxes, the will | | | | You may be exempted from tax payment or |
| have to wait till there is a steep decline in the | | | | may even get an extension. Yes this is possible if |
| property values. | | | | you apply to your county treasure for relief. If |
| Another factor which is leading to high property | | | | you can prove beyond that you are really in |
| tax invoices is the high rate of foreclosures and | | | | pretty bad state financially and cannot afford to |
| increased defaulters. Many counties are thus | | | | pay the taxes, you may get some relief. You |
| looking at increased property taxes which are not | | | | need to hurry and take this step, so that you |
| being paid. Detroit is one such area where the | | | | may meet the deadlines set by your county |
| property taxes have increased considerably, which | | | | treasurer. |
| has led to a high rate of non-payment of taxes. | | | | In some cases banks may also consider you for |
| Detroit is now placed among the worst affected | | | | loans, in order to pay off the property taxes. It is |
| housing markets. The rate of foreclosures is very | | | | more beneficial for the bank to give you loans |
| high and the property prices have devalued | | | | rather than to let the county take control of your |
| considerably. A weak economy with decreased | | | | property. This measure though has its drawback |
| employment opportunities is a major factor in | | | | as it means that you are deeper in debt now. |