WHY A PERSON DOESN’T PAY HIS TAXES?

There are many reasons why a person does not pay his taxes. Very often he just forgets until it is too late and the property becomes in default. If when the property holder is notified he is unable to pay because it is now out of his reach, an investor can purchase the tax lien certificate.

The most common reason that taxes go into default is when a person obtains a mortgage; the taxes are usually included in the monthly mortgage payment and paid by the lender. However, if the borrower finds himself with financial hardships, and he defaults on his mortgage, he also defaults on his tax bill. Very often if he is about to lose his property, he feels why should he just pay the taxes, and more often than not doesn’t.

There are situations where a property owner owes a sum of money in taxes that he just does not have. To borow the money is not a choice because the only place he can go is to a credit card and the interest on the borrowed money is more than the interest on the taxes, therefore the taxes are not paid.

Another situation finds an inheritance of property or property as a gift and the receiver is not informed that there are taxes due. And course more common than we realize, there are at times partners owning real property who have a disagreement and do not speak to each other, and one does not know the other is not paying the taxes.

Last but not least, a property owner could be in jail or have fled the country due to criminal activities and not able to pay tax bills.

Its also good to remember that property taxes are a small payment compared to the value of the property, but can still be thousands of dollars a month.

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