Paying property taxes can be a struggle, especially in the Black community where a slew of homeownership barriers persist.
It’s bad enough that median household incomes are lower for Black folks – making it tougher to keep up with taxes when life events such as divorce, job loss, or unexpected expenses happen.
But there’s another huge obstacle we face: the current foreclosure system in America.
Once you fall behind on property taxes, you’re liable to be slapped with a host of extra fees, interest charges, and legal costs that can often make it difficult, if not impossible, to catch up.
According to a 2022 University of Chicago study, harmful foreclosure practices nationwide impose severe additional costs on delinquent homeowners, disproportionately affecting those in Black and Brown neighborhoods.
According to a 2022 University of Chicago study, harmful foreclosure practices nationwide impose severe additional costs on delinquent homeowners, disproportionately affecting those in Black and Brown neighborhoods. These practices – which include aggressive tax liens and property tax sales to investors – not only exacerbate foreclosures, but they also accelerate disinvestment in communities of color, the researchers found.
That’s one reason it’s common to drive through some economically depressed neighborhoods and see a rash of unsold, vacant, or publicly owned delinquent properties.
Compounding the problem are inaccurate property valuations, which have led to a stream of unfortunate stories about Black people owning their homes for years – if not decades – and then losing their property through tax sales, even when past due taxes were less than $1,000.
Most cities or counties allow homeowners to enter into payment plans to gradually pay back overdue taxes over time. This prevents further penalties and fees from accruing while giving you breathing room.
“The racial wealth gap is not an accident—it is a policy failure rooted in white supremacy and enshrined in biased policy mechanisms that punish low-income and Black communities,” notes an August 2023 report from The Brookings Institution, “How the Property Tax System Harms Black Homeowners and Widens the Racial Wealth Gap.” In June, the Biden-Harris Administration announced measures to address racial bias in home valuations.
But families facing potential foreclosure need to take steps now. If you find yourself grappling with overdue property taxes, take a deep breath. This too shall pass: not just with prayer, but with a game plan too.
Here are seven steps to take to face your issues, save your home, and keep the roof over your head.