There are a few different reasons that you should consider applying for a commercial property tax loan and whether or not you need one is going to depend on your financial situation. In this short but ultimate guide for commercial property tax loans, we can cover the most common reasons for seeking out one of these loans. They can mean the difference between foreclosure and keeping your commercial property in your portfolio.
The first thing to talk about is what you can expect to happen if you decide to pay your back taxes to the tax entity that collects them in your area. There are going to be penalties and interest that are going to continue to accrue the entire time you owe your back taxes. The only way to stop them is by paying your taxes in full and that’s when a commercial property tax loan may be your best option.
The biggest reason to seek out a commercial property tax loan is also the most important. Anytime you have delinquent taxes on your account, you’re at high risk for foreclosure and that can be a very scary thought for a lot of people. The fact that the property is commercial won’t stop the tax-collecting entity from foreclosing on you, just like they would do in a private property situation.
The fact that no one is living at the property is likely to make it much easier for the tax entity to foreclose as well, and that’s something you have to keep in mind. While there are protections in place for foreclosure on a residence, they may not exist for commercial properties in your area. Only a vast working knowledge of tax law is going to give you the answers to that.
Finally, you may have enough liquid cash to pay your back taxes but doing so may completely tap your resources and leave you without the money you need to survive. This is when applying for a commercial property tax loan may be in your best interests. If you already have the cash to pay your tax bill doing it over a longer period may be your best solution.
No matter what you decide, there are always programs that can help you out. Speak with a tax lawyer and figure out the best solution for you and your situation.