Foreclosure University Property Taxes

not paid property taxes and the house is to be sold for the taxes

March 4th, 2011 by Jarad

Question:  Maybe I just didn’t find the answer. BUT, my husband and his daughter own a home in Atlanta which is underwater on an equity credit loan but no first mortgage. He also owns a home in Las Vegas. We just learned that she has not paid property taxes for six years and the house is to be sold for the taxes. If we stop paying the loan doesn’t the bank treat the loan as if it is a first mortgage and just foreclose on it?

Answer:  – This is something you don’t want to take lightly… especially if there is equity in the home because you could lose the home for just the back taxes if the home is paid off. If the line of credit is attached to the home, many times the bank will forward money to pay the back taxes so they don’t lose their lien position or interest in the property. Georgia is a tax deed state with a 1 year redemption period. The penalty is 20%, meaning the homeowner has to pay an additional 20% to the investor who buys the deed for the back taxes. If nothing is done within the redemption period, the investor keeps the property. So depending on what the house is worth, if there is any equity, you might want to find a way to pay the property taxes unless your don’t want the property.

Bought a home through USDARuralDevelopement. We have our property taxes deferred because we are over 62. Can we be “forgiven” one time on all we owe?

November 4th, 2009 by Jarad

Question: my x husband and I bought a home through USDARuralDevelopement program. We have our property taxes deferred because we are over 62. My question is one of us cannot afford the payment. We were told by a RE Agent that we can be “forgiven” one time on all we owe? Is this true? and as far as the property taxes can our Social Security be garnished?

Answer: – Yes, there is such a program called Senior Citizens Tax Deferral Program and like everything else you must meet certain criteria in order to qualify, like Age, Income and how long you’ve Owned the home. And as far as I understand it does not eliminate your property taxes, it only lowers the amount you have to pay in property taxes and “defers” the rest. Each state may have different qualifications so you may want to contact the Property Tax Division in your state to get more info on it.

I have a mortgage and home equity line of credit I am in Florida. If my property is foreclosed upon what happens to the equity line of credit?

September 11th, 2009 by Jarad

Question: I have a mortgage and home equity line of credit on the same property with Countrywide. I am in Florida. If my property is foreclosed upon what happens to the home equity line of credit? Also am I held liable for taxes up to the foreclosed date?

Answer: -If your home has a first and second with the same lender, Countrywide, it’s almost treated like it’s one loan. If they send it through foreclosure, they’ll probably start at just what’s owed on the first and hopefully get someone to bid on it…If no one bids then they’ll end up with the property. Then they’ll probably write off that 2nd in which they could file for a deficiency judgment but more than likely they will 1099 you for that amount they lost and you’ll have to pay taxes on it. As for the property taxes, they’ll have to pay those in order to sell it to an end buyer.

If I hold the first and the second is forclosing

August 28th, 2008 by Jarad

Question: If I hold the first and the second is foreclosing
what can I do to ensure that I will still be paid?

Answer: -Lien holders get paid based upon lien priority and there are a few “rules”. Lien priority is based upon when things are recorded. So if you are in 1st position, you will get paid before someone in 2nd, 3rd, etc. So if they 2nd forecloses and no one bids, they have to pay off all senior lien holders. Property taxes are the only exception, they always get seniority over everything no matter when they are recorded.

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First I would like to say great job on presenting such informational material. Although I have not yet completed a Short Sale Deal, I have learned so much from your course. I would highly recommend any new foreclosure investor to your course.
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Taylormade Home Solutions, LLC

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