Every year, the county in which you live assesses a tax against your real property (i.e. your home). This assessment is based on the extent to which your home has either appreciated or depreciated in value over the past year. Different variables are used in order to make this determination, but ultimately, the value that the government assigns is their best educated guess.
Once the value of your property is established, the government will then assess a tax. This tax can be paid at the end of every year, but is frequently divided up into monthly payments with your regular mortgage payments (in other words, it is escrowed in with the monthly house note).
Problems can arise when the real estate tax is not paid. It is not unusual for the mortgage company to pay this past due tax on your behalf, but as a result, the mortgage company will increase your monthly mortgage payment so that they can recover the cost. Other times, the government will initiate a tax sale upon your home in order to receive the assessment (this is similar to when a mortgage company forecloses on the loan).
It is also possible to repay the existing real estate tax debt through a St. Louis Chapter 13 bankruptcy. Once such a plan is filed with the court, you will have the opportunity to pay the tax off over a period of three to five years. Or, if you choose to surrender the home through either a St. Louis Chapter 7 bankruptcy or a Missouri Chapter 13, the real estate taxes would ‘follow’ the home and you would no longer be responsible for paying them.
Whatever the set of circumstances that may exist, the St. Louis bankruptcy attorneys at The Bankruptcy Company have the knowledge and experience to provide you with expert advice on which option is best for you. In the end, our goal is to put you on a path towards financial health, so that you can receive the fresh start / clean slate that you deserve.