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Recently many home owners have been surprised by recent freeall of their home prices. In the face of falling prices, you would expect that there is at least one advantage. Homeowners expected that when the value of their homes fell, the property taxes would go down correspondingly. This, unfortunately, has not been the case.

Homeowners have been suprised to realize that the property taxes have not decreased, they have increased! This has come as quite a shock to homeowners as they try to comprehend why they are paying increased taxes on houses that are not worth as much as they were a year ago.

The reason for this relates to the complex manner in which property taxes are calculated in many areas. One of the biggest problems, especially in Nevada, is the fact that property tax increases were capped during the housing boom. During this time home values skyrocketed rapidly. Today, the values of homes in these same areas are falling; however, the decreases have not actually been enough to compensate for the increases of just a few years ago. Consequently, the values of homes would need to decrease sharply over a short period of time in order for property tax bills to decrease. While declining property values have certainly been a problem, they simply have not decreased enough in many areas to provide any relief from property tax bills.

As the rate of defaulted loans and foreclosures continue to soar in many locations, numerous counties have discovered that the rate of unpaid properties taxes is also on the rise. The metro Detroit area, in particular, is experiencing a record high rate of unpaid property taxes. Detroit is currently considered to be one of the worst housing markets in the United States based on the decline of housing prices and increase of foreclosures. The lack of jobs and weak economy in the greater Detroit area are considered to be the primary factors contributing to the housing crash in the area.

Many property owners are still at risk of losing their homes to foreclosure if they fail to pay their property taxes three years in a row. This is spite of them meeting their montly mortgage payments! When this happens, the county takes control of the home and auctions it off to pay the balance of taxes due. Counties in the Detroit are struggling to recover millions of dollars in unpaid backtaxes. The issue has had a very large impact on counties in the greater Detroit area.

There are a few steps property owners who are behind of their property taxes can take to hold or stop their foreclosure. The first step to start making payments on their current taxes. Many homeowners think they are doomed if they cannot pay off all of the taxes due and resort to paying nothing at all. Remember, making any payment, even a tiniest amount, is better than paying nothing at all. If you are not able to pay the whole amount of the taxes, at least start paying off the oldest taxes first. Taxes unpaid after three years places you at risk for foreclosure. Paying off the oldest taxes first gives you a little more breathing room.

You should also check with your county to see if you are eligible for an extension on paying your overdue property taxes. In some situations, the county treasurer will grant exemptions or extensions for your taxes if you can demonstrate extremem hardship. It is best to do this as soon as possible, there are usually deadlines for exemption applications.

Also, check with your mortgage holder to find out if they offer a program or loan that may provide you with the cash to pay your taxes. It is rarely in the best interest of the mortgage holder to have the county take over a property, so they are often willing to work with the homeowner to avoid foreclosure. When you do this though, you will be taking on an increased debt burden.