Lose Vacant Lot if Don’t Pay Property Taxes or HOA Fees
Question: Twenty years ago my husband and I purchased a lot in northern Arizona. Although there were promises by the developer about development of the entire area, no development has occurred, and no development is anticipated. Every year we pay the property taxes and property management fees related to the development. We are retired, and want to reduce our expenses. Is there anything that we can do with the lot that would not harm our credit rating?
Answer: If you fail to pay the property taxes you could eventually lose the lot at a tax sale, but your credit rating may be affected. If you fail to pay the management fees, the developer could get a judgment against you which would affect your credit rating. Therefore, you should contact the management company to see if the developer, or even another lot owner, would be interested in purchasing your lot. Similar to an unhappy timeshare owner, in order to stop the annual management fee and other expenses, you may even offer to pay a cash bonus to the developer, or to another lot owner, who would be willing to accept a transfer of your lot.