time after a foreclosure.
Deed-in-Lieu of Foreclosure. Many people are acquainted with this option as the “friendly foreclosure.” If after analyzing all your options, you still believe you really are pinned against the wall, you can simply avoid foreclosure by returning the deed plus the house to the tax collector (or bank) and simply walk away. It’s painful to think about, but it is often an option, pending a lender’s approval. However, if your outstanding balances extend beyond the property taxes that you owe, then this isn’t even an option for you. Complications may arise, such as when tax collectors prefer to see the property on the market for a minimum of three months before accepting a DIL. But by going this route, you save the tax collector money, tens of thousands of dollars, and for that, FNMA has also narrowed the compulsory waiting period to set up a credit history to four years.
WHY DO PEOPLE FAIL TO PAY THEIR PROPERTY TAXES?
Sometimes, delinquent property taxpayers have genuinely understandable reasons for failing to pay property taxes, but for others, it’s a complete disaster. Here are a few examples that paint a picture of why some people fall behind in property tax payments: • According to a statement given by a county treasurer, a significant percentage of the delinquent property holders declare bankruptcy and, over the waiting period of six months, accrue back taxes as proceedings go on. • Some property owners don’t possess a sufficient amount
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