My House in Philadelphia is Up for Tax Auction
Tax auction on your home in Philadelphia may seem daunting, but it’s not the end of the world. It does seem overwhelming and confusing, but there are alternative ways to approach these issues. Oftentimes, people want to sell their home fast to manage their assets. Property tax issues often catch people by surprise, especially during financial crises.
A silver lining to the dark cloud is that if your home in Philadelphia is up for tax auction (also known as a Sheriff Sale), you may still have options. Jon states that, “many homeowners manage to keep their homes by understanding how this process works.”
How Does A Tax Auction Work in Philadelphia?
In Philadelphia, the property taxes are handled by the Department of Revenue and the Sheriff’s Office. If you fall behind on the property taxes, the department could obtain a court order to collect what you owe. The process goes as follows:
- Delinquency notices
- A petition in the court
- A hearing
- A posted notice
- A date for the Sheriff Sale
This is a crucial point. As homeowners, you may not realize how quickly the process can go. An immediate action is essential.
What Are My Options?
There are several ways you could use to stabilize the situation.
Philadelphia Property Tax Payment Agreement
Philadelphia has relatively homeowner-friendly tax programs. The payment agreement is called the Owner-Occupied Payment Agreement (OOPA). It allows homeowners who live in their property to enter into a monthly payment plan based on their household income. If you enter into an OOPA before the sale, the City will halt the Sheriff Sale, provided you are up to date with your payments.
I have realized that “many homeowners believe that they have no options if they owe taxes.” Applying for OOPA can immediately pause the process.
Apply for Other Tax Relief Programs
Sometimes homeowners fall behind on taxes because they are simply too high. Philadelphia offers several programs that could lower taxes going forward. These include:
- Homestead Exemption
- Senior Tax Freeze
- Longtime Owner Occupants Program
Redeem the Property Before the Sale
If you can pay the outstanding taxes before the sale, the city will remove your home from the Sheriff Sale. This process is called redeeming the property. You could redeem the property in the following ways:
- Personal funds
- Refinancing the existing mortgage
- Relief programs
Get Legal Assistance
Several organizations in Philadelphia could provide legal assistance with the process. These organizations include:
- Philadelphia Legal Assistance
- Community Legal Services
- SeniorLAW Center
Challenge Incorrect Tax Charges
Sometimes there are administrative errors. These include:
- Incorrect ownership records
- Improper assessments
File for Bankruptcy
This is your last resort. Certain types of bankruptcy can trigger an automatic stay that temporarily halts the auction. However, bankruptcy has long-term consequences on your credit.
Sell the Property As-Is
If keeping the home isn’t feasible, you may consider selling the property as-is. Philadelphia has a strong buyer demand that could put you in a better financial position.
Final Thoughts
Even though this process is stressful, it’s not hopeless. There are multiple lifelines and safety nets you may not realize. I strongly emphasize, “the quicker you are on your feet, the more options you have.”
