Avoiding Property Foreclosure

Posted on: November 10th, 2014 by firstandsecondmortgages No Comments

The Canadian government imposes property taxes on homeowners and businesses to finance county and municipal costs. Property taxes are meant to pay for services such as snow clearing, police and fire personnel. They help fund public schools and other community services.

Your municipality collects its money in order to meet its budget. Unfortunately the government comes after you if you are unable to meet your payments. Eventually, if non-payment persists, you may even lose your home.

Just like at the bank, if you are unable to meet your property tax payments in time, interest will start accruing on your tax account on a monthly basis and the total balance you owe will start to steadily increase.

If you are unable to pay your taxes over a period of time, the government will schedule your property for a tax sale. In a tax sale, someone else (usually an investor) pays the taxes on your behalf. You now owe the investor, not your government. If you don’t pay, the investor will file a petition with the court to foreclose on your property and take ownership of it.

In an ideal world, one would make all tax payments on time and avoid the mortgage enforcement process. But as we know, circumstances change and life does not always happen according to plan. When one understands the fundamental options and the legal process around tax payments, one might be better prepared to deal with them.

If you are facing the possibility of property foreclosure due to default on property tax payment, contact us at 403-543-0927 or 1-866-405-1228 to see how we can help you.

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