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What happens to liens and property taxes after foreclosure?

Posted on: 28th Dec, 2006 08:28 pm
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.
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.
Posted on: 28th Dec, 2006 10:35 pm
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.
Posted on: 29th Dec, 2006 01:13 am
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
Posted on: 03rd Jan, 2007 04:26 am
So what if you recieve money from a insurance claim into your escrow account and it is enough to bring you current on your foreclosure, would the lender take that money and get rid of the foreclosure?
Posted on: 16th Apr, 2010 05:10 pm
It will be lender's discretion whether or not they would accept the insurance claim to bring the escrow account current. I would suggest you to contact your lender and check out with him in this matter.
Posted on: 19th Apr, 2010 03:18 am
does this also depend on where you are? Foreclosure laws tend to vary from state to state don't they?
Posted on: 21st Apr, 2010 08:20 pm
Adonis states "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."

If you are paying on a loan, doesn't the lender already have the title? Or does that come from the title company?
Posted on: 02nd Sep, 2010 08:09 am
The borrowers needs to formally sign a document transferring the property to lender when the property is foreclosed. I guess that's what Adonis is referring here.
Posted on: 03rd Sep, 2010 12:43 am
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