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.

In some cases, homeowners have been shocked to discover that not only have their property tax bills not decreased, they have actually increased in some cases. This has been quite a surprise for homeowners as they struggle to understand why they are paying more in taxes on homes that are not worth as much as they were just a year ago.

For the most part, the reason is due to the complex manner in which property taxes are calculated in most areas. One of the biggest culprits, particularly in Nevada, is the fact that property tax increases were capped during the housing boom. The housing boom saw home values skyrocket rapidly. At this time, the values of home in these areas are decreasing, however the fall has not been enough to compensate for the increases of a few years ago. As a result, the values of home would need to decrease rapidly over a very short period of time in order for the tax bills to decrease. While declining property values have certainly been troublesome, they have not fallen enough to provide any sort of relief for home owners.

As the rate of foreclosures and defaulted loans continue to rise in many areas, many counties have noticed an increase in the rate of unpaid property taxes. Detroit is the location of a record high rate of unpaid property taxes. Detroit is currently considered one of the worst housing markets in the United States based on the rise of foreclosures and the rapid decline of housing prices. Adding to the turmoil is a lack of jobs and a weak economy in the greater Detroit 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 might also check with your county to determine whether you may be eligible for an extension for property taxes which are unpaid. In some situations, the county treasurer may be able to grant you an exemption for your taxes if you are able to demonstrate extreme hardship. It is best to do this as early as possible; however, as there are commonly deadlines for the 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.