Question: My home is currently on (short) sale since I can no longer afford it. I may be ultimately forced to file bankruptcy & foreclose on the house. My husband is not on the mortgage but he is on the deed. Will he become liable for paying the property taxes if I foreclose or file bankruptcy?
Answer: -If you go through foreclosure, and your lender ends up with the property, they will most likely pay the property taxes on the home if any are owed in order to try and sell it. If the short sale is approved, those taxes will be paid up as well because it will be part of the deal and the new owners will start paying the taxes from there.
I have a property that the owner has filed bankruptcy and was advised to let house go to foreclosure. There is no equity but I am going to negotiate 2nd at discount and short sale. He has only received the bankruptcy court papers, not NOD yet. Is it too early to negotiate?
It’s best to negotiate after the NOD has been filed. In the meantime, you can get the paperwork started so that when the NOD is filed you can be ready to negotiate.
Very important… bankruptcy halts everything for the homeowner. It’s fine to negotiate during this bk period, however don’t record anything until after the bk has been released or it will be invalid.