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Taxes
Along with home ownership comes the responsibility to pay property taxes. The county, township, town, city, village, park districts, schools are examples of the various taxing bodies which have the ability to level a tax on your property. Each of these taxing bodies has its own tax rate. The total estimated market value of all the taxable property in your county is then multiplied by these rates to determine the total tax each taxing body will receive. The portion that the estimated value of your property is of the total taxable property in the county, equals the amount of taxes you owe.
The county treasurer's office mails tax bills to the homeowners once a year. Tax bills can be paid in full, or half of the amount by the date specified as the 1st installment due date, (June 1st in Lake County). The remainder of the property tax is due by the 2nd installment due date, (September 1st in Lake County).
If you do not pay your property taxes in full by the specified dates, you will then owe the taxes, plus penalties plus interest. Then the county will hold an Annual Tax Sale at which your property taxes will be sold to a tax buyer. The Tax Buyer pays your property taxes and then collects interest from you for late payment. If you do not pay these taxes and interest (known as redeeming), the Tax Buyer can petition the court for a tax deed to your property. This means you lose ownership of your property.
If your mortgage company is paying your property taxes through an escrow account, it is still your responsibility to make sure the correct payments are made on a timely basis. The county is not required to notify your mortgage company of your taxes due. The reason is that mortgages are often sold between companies or refinanced too frequently for the county to keep track. Making sure that your property taxes are paid is the responsibility of each property owner.
Property taxes are just one example of a potential tax problem. Other taxes which you do not pay can also result in liens against your property. If you sell your property, mortgages and all liens must first be paid from the proceeds of the sale, before you get any money from the sale of your property.
Protecting your investment from these issues is important.
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