Experiencing the Consequences of Late Property Tax Payments: A Real Story
Have you ever found yourself in the uncomfortable position of not paying your property tax on time? It can be a stressful experience, especially when it's your first time encountering it. I recently faced this situation and shared my experience, hoping to shed some light on the process and consequences involved.
The Experience of Being Late
When I delayed or missed my property tax payment, the process was swift and direct. I received a reminder from the township stating that I was in arrears and would be charged a late fee. In New Jersey, the interest on late payments can quickly add up to 18% per year. If you let it go for more than a year, the property can be put up for tax sale, and someone else could buy a lien on it.
The Consequences of Non-Payment
The consequences of late or missed property tax payments can be severe. Not only are there added interest fees, but if you do not address the issue promptly, your property could be placed in the tax sale. If you do not redeem the lien within two years, the lien holder can foreclose on your property, resulting in the loss of your home. It is a serious matter that should not be taken lightly.
A Personal Example
My story begins with a simple mistake. I put a reminder in my Alexa to pay the property tax but assigned it to the wrong month. As a result, it was three weeks past the due date before I received a notification from the township. The notice outlined that I owed an additional $60 in late fees and that fees would continue to escalate if I did not complete the payment soon.
Simultaneously, my mortgage holder sent a more urgent message. They demanded proof of payment and threatened potential adverse effects on the status of my mortgage if I did not provide it immediately. I quickly resolved the issue by paying the tax and the late fees through the township's online platform. I then printed out the receipt and promptly mailed it to my mortgage holder.
Thankfully, since then, I have not heard any further correspondence. While my experience might be the dullest to share, it serves as a reminder to stay diligent and on top of your property tax payments.
How to Avoid These Issues
To avoid facing similar stress and potential financial burdens, it is recommended to set up an automatic withdrawal for your property tax payment. Many services offer discounts for early and full payments made directly from your bank account. This can lighten the financial burden and make the process much simpler and less stressful. By automating the process, you reduce the risk of late payments and any damaging consequences that come with them.
Conclusion
Navigating late property tax payments can be a stressful and complicated process. Whether it's due to a simple oversight or an unforeseen situation, it is crucial to resolve the issue as quickly as possible. Understanding the potential consequences can help you make informed decisions and ensure your property remains secure.