Tax Payment Foreclosure

Tax Payment Foreclosure
tax payment foreclosure
tax payment foreclosure
tax payment foreclosure

Property Taxes and Your Bankruptcy

February is tax season, when the winter property taxes become due. While often property taxes are included within a mortgage payment, when it is not, the property tax payments can be a burden. Many households then wind up doing a balancing act of deciding which bills take priority. If property taxes are not paid, usually within 25 months, you will lose your home. The only action that can extend this time period is filing a bankruptcy petition. To help readers I have drafted the following time line for tax foreclosure on a property. This is the legal process that will happen if property tax payments are not made.

• July-December 2006: Property taxes billed by city or township.
• March 1, 2007: Unpaid 2006 property taxes received by County Treasurer a 4% administration fee is added plus 1% per month interest.
• March 1, 2008: Property is forfeited to the County Treasurer, a $225.00 fee is added and interest rate is increased to 1.5 per month retroactive to the date the property tax becomes delinquent.
• February 24, 2009: The Circuit Court enters a Judgment of Foreclosure for non-payment of property taxes. Property owners have until March 31 to pay taxes, penalties and interest or lose their property.
• March 31, 2009: Title to the property passes to the County Treasurer.
• July or September 2009: The foreclosed property may go to public auction by the County Treasurer.

For more information see M.C.L. 211.135 et seq and P.A. 123 of 1999.

The Law Firm of Gene Turnwald, P.C. will help you determine the best solution for your financial situation. If you are seriously considering foreclosure, contact Lansing Bankruptcy Attorney, Gene F. Turnwald, for a free consultation. Mr. Turnwald may be reached at (517) 347-6700 or through the firm's website, http://www.gturnwald.com/

About the Author

About the Law Office of Bankruptcy Attorney Gene F. Turnwald, P.C.:

Specializing in criminal defense, divorce, personal injury and bankruptcy, the Law Office of Gene F. Turnwald is based in Okemos, Michigan. A graduate of Michigan State University, B.A., Mr. Turnwald attended Thomas M. Cooley Law School, J.D. College, and was admitted to the Michigan and U.S. District Court, Western District of Michigan in 1992, U.S. District Court, Eastern District of Michigan in 1996. Mr. Turnwald may be reached at (517) 347-6700 or through the firm's website, http://www.gturnwald.com/

Tax on 2006 Income figured by loan payment amounts. In 2009 sent bill for this. Why?

Someone took title to our home in 2006 which saved in from foreclosure. The loan was still in our name for one year. They were supposed to pay directly, but got behind. The market had taken its downturn. They had remodled and tried to sell. No luck. So eventually got their refi--Now, in 2009 we are being billed $5700 by CA Franchise Tax Board, based on the amount of payments to our loan? We only had social security and amounts taken from our IRA if necessary. Any solutions? Thank you.

This is a common problem. The California FTB is very aggressive regarding none filers whom they have information that the none file had income. In what appears to be your circumstances they got a form 1098 with your name and Social Security number showing that mortgage payments were made. They conclude that you had income enough to have paid those payments. Since you did not file a return they have no other information to go on. If your only income was Social Security benefits and an IRA distribution you likely had no tax liability and may not have had a filing requirement. So the bottom line is that you need to show them what your income was and explain that you did not make the mortgage payments. The best way to do that depends on your circumstances. You may wish to have a tax professional assist you in doing so.
Most importantly you do need to respond to their inquiry. Not doing so can push a zero debt to thousands and take months to untangle.

Loan Modification, Short Sale, Foreclosure, Tax & Legal Ramification - Free Workshop: Don Jessup