What happens to liens and property taxes after foreclosure?

Guest 0.10 Dollars($)

My home is foreclosed and I am currently putting up at a rented apartment. Can anyone tell me what happens to the liens on the home? Do I need to pay off property taxes. I am already 2 years behind on them.

Guest 0.10 Dollars($)

If there is recorded lien and if it subordinate to the mortgage, then the lien holder can bid the property in the foreclosure sale and get the sale proceeds.

If the lien is not recorded, it is not attached to the property. It is then to be a debt owed by the first owner.

adonis · Posted: Fri Dec 29, 2006 2:13 am Post subject:

Until and unless the lender obtains the legal papers regarding property-title, you will be responsible for all costs related to your property. These include the property tax bills also. As soon as the lender gets the title, he will be paying for the taxes.

sara

Hi Jaxon,

The lender sets up a tax escrow account in which the borrower/homeowner deposits the monthly payments on insurance and property taxes. However, if the borrower cannot pay off the loan, the lender uses the money in the escrow to retrieve the cash he has invested.

In case, there is no escrow account, the borrower has to pay the taxes. And, if he wishes to sell the property, he has to pay all back taxes owed along with what he owes to the lender. So, even if the lender has started the foreclosure, the borrower has to pay the taxes due, the loan balance and probably the lender's fees for conducting the foreclosure.

Thanks,

Sara

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