If COVID-19 is affecting your personal finances, now is the time to begin assessing obligations and planning for the rest of the year.
We genuinely want everyone to repay their obligations to all creditors and governments. Many of our clients have expressed no desire to quit. However, this is an unprecedented crisis, and timing can be critical to maintaining financial stability at home.
April 10th is the deadline for property tax bills. Choosing to make a partial or courtesy-type payment—or not paying at all—may be a viable option if it helps you meet higher-priority obligations.
There are provisions in the tax code that allow a property to be delinquent for up to 5 years before foreclosure (unlike a mortgage, which can default in just 4 months—though likely longer during this crisis). Additionally, property tax delinquency is not reported to credit bureaus, and the penalties are much lower than credit card interest rates.
This makes property tax timelines more flexible than those of mortgages, credit cards, and other creditors who report to credit bureaus.
Tip 1: Pay what you can on or before April 10th.
Tip 2: On April 11th, submit your “penalty cancellation form” using one of the following:
Tip 3: Make payment arrangements post-crisis.
Did you know that there are ways you can get out of—or even lower—your mortgage payment? Check out our blog:
How to Get Out Of A Mortgage
Our goal right now is to help people make the best financial decisions possible.
Important Note:
If you have impounded taxes and insurance, mortgage servicers may allow hardship requests to have funds from your impound account applied to your next mortgage payment. Please approach this seriously, as it can impact your credit.
We want everyone to understand this: Christian and I would rather take calls from clients during this time that result in no profit whatsoever—because it’s the right thing to do. We have a responsibility to step up for the community that has supported us for years.
No one needs to go through this hardship alone. We are a community. Let's work together to reduce the impact of COVID-19.
#alonetogether
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Contact us today for more information.
