How do I not lose my house to taxes?
Daily Herald
I know from experience that if one person has a question or problem, there are thousands more behind the scenes who are struggling with a similar situation. And I'm not the least bit surprised: The stock market is up, then way down. Gas prices are soaring. We're now hearing that food prices are on the rise. Add all of these together and you've got a lot of people who are concerned about their bottom line. So I like to dole out the answers and tips in this space whenever possible.
Q: We purchased our first home in 2006. We were in a subprime loan, and our mortgage was $4,500 a month. Needless to say, we were not able to pay our house taxes. A few months ago, our new lender refinanced us at a lower rate so we were able to keep our home, but we still owe thousands of dollars in property taxes. Are we going to now lose it because we haven't paid? -- Charlie, San Francisco, Calif.
A: The first thing you need to do is call your local tax office, because chances are, they'll be willing to work out a payment plan with you. The caveat? "They usually want this year's taxes paid before next year's come due," says Gail Cunningham, senior director of public relations for the National Foundation for Credit Counseling. To get an idea of what your monthly bill might be, you can split the amount you owe over the number of months you have before next year's due date. If it comes out to be more than you can swing, you need to consider finding another source of income, either by moonlighting or working overtime. Filter all the extra money toward your tax bill, and then start planning ahead for next year so you don't start the cycle all over again.
Q: I make good money, but due to the rising costs of gas, food and everyday goods, things are tight. I'd like to get rid of one of our vehicles, but it's a lease. What should I do? -- Jennifer, Tulsa, Okla.
A: I'm hearing this again and again these days, especially from people who bought or leased SUVs and are now regretting it because of the absurd amount they're paying for gas. Luckily, you do have some options. The first is to go back to the dealer and explain the situation to see if you can strike a deal that will cost you less than your original payments, preserve your credit and get you out of the car. It will, however, likely cost you something, which is why I like the second option better: swap the lease.
In this scenario, you use a lease transfer program to find someone else to take over your Car Lease. These companies are like the match.com of car leases -- they'll put you in touch with someone who's looking for a short-term lease, then work with you to make an official transfer of the contract. They also screen applicants to make sure their credit and income are sufficient, which takes a load off your shoulders, although John Sternal, a spokesman for LeaseTrader, tells me that once the contract is transferred, you're not liable for any defaults. There's also no black mark on your credit from the transfer, and it's relatively inexpensive. LeaseTrader charges $79 to post your vehicle online and about $150 to do the transfer./html>
Print | posted on Tuesday, May 27, 2008 11:43 AM