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.
Please enable JavaScript for the best experience.
In the mean time, check out our refinance rates!
| Company | Loan Type | APR | Est. Pmt. | |
|---|---|---|---|---|
| Go | ||||
| Go | ||||
| Go | ||||
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.
does this also depend on where you are? Foreclosure laws tend to vary from state to state don't they?
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.
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?
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.
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.
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?
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.
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