Understanding Tax Lawsuits
Navigate Your Tax Lawsuit with Confidence
Discover the phases of a property tax lawsuit and the options available to homeowners facing these matters. Depending on your unique situation, you may qualify for additional assistance that does not require the sale of your house.
WHAT IS A TAX LAWSUIT?
A tax lawsuit is a legal action initiated by the government when property taxes remain unpaid. This can lead to severe consequences for homeowners, including the potential loss of their property. Understanding the intricacies of a tax lawsuit is crucial for homeowners in distressed situations.
WHY IS IT A PROBLEM?
When property taxes are not paid, the government may file a lawsuit to recover the owed amount. This lawsuit can result in foreclosure, which can affect the credit of the homeowner. Homeowners need to be aware of their rights and options during this process.
WHAT CAN I DO ABOUT THIS?
For homeowners, a tax lawsuit can be a daunting experience. It not only threatens their financial stability but also puts their home at risk. By gaining a clear understanding of what a tax lawsuit entails, homeowners can take proactive steps to address the issue and explore potential solutions.
Phases of a Tax Lawsuit
1.
Lawsuit Filed
The process begins when the government files a lawsuit against the homeowner for unpaid property taxes. This legal action is the first step in attempting to recover the owed taxes.
2.
Default Judgment
If the homeowner does not respond to the lawsuit, the court must issue a default judgment in favor of the government. This judgment confirms the amount owed and allows the government to proceed with further actions.
3.
Order of Sale
Following a default judgment, the court may issue an order of sale, authorizing the government to sell the property at auction to recover the unpaid taxes. This is a critical phase where homeowners must act quickly to avoid losing their home.
4.
Foreclosure
After an order of sale is issued, the taxing entity then proceeds with a foreclosure. This is a critical and often final step in the process. This action allows the taxing authority or the winning bidder at auction to take legal ownership and possession of a property.
Frequently Asked Questions
What is a tax lawsuit?
A tax lawsuit is a legal action taken by the government to collect unpaid property taxes from homeowners.
How can a cash offer help me?
A cash offer allows you to quickly sell your property and pay off your tax debt, avoiding foreclosure and additional legal complications. This option also gives you certainty in the outcome of situation.
What are the benefits of a tax loan?
A tax loan provides the funds needed to pay off your overdue taxes, giving you time to repay the loan and keep your property. With property tax loans, you choose the length of your payment plan (up to 10 years). However, these plans include fees and interest of up to 18%.
How does listing my property work?
We list your property a variety of platforms to attract potential buyers, helping you sell your home at market value. With this option, you may be subject to inspections, appraisals, buyer credits, and lengthier timelines to sell.
What should I do if I'm facing foreclosure?
Contact us immediately to discuss your options. We can provide guidance and support to help you navigate the foreclosure process.
Can't I just enter a payment plan with the county?
The county or the collections agency assigned to your case may offer a payment plan. However, these are generally a shorter term than a property tax loan may provide (3 or less years).
Take Action Now
Don’t wait until it’s too late. Contact Black Card Acquisitions today for a free consultation and explore the best solutions for your tax lawsuit situation.