How do foreclosures affect local real estate tax collection?
Bobo asked:
Does a property stop generating real estate tax revenue while it is in foreclosure? Does the delinquent amount have to paid by the eventual “owner”?
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on Monday, May 31st, 2010 at 12:00 am and is filed under Renting & Real Estate.
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Does a property stop generating real estate tax revenue while it is in foreclosure? Does the delinquent amount have to paid by the eventual “owner”?
June 1st, 2010 at 1:47 pm
No the lender pays the property taxes. The house cannot be sold as long as there outstanding taxes to be paid Tigg
June 1st, 2010 at 2:05 pm
first part of the question, Yes people running out of the money to pay for the mortgage, they will run out of money paying taxes too. So the revenue lost for the county.
second part, No, new owner will not pay the amount delinquent( not fair for the new owner). If that happened, they may buy a brand new house so they don’t have the problem with the taxes. Hoa N
June 4th, 2010 at 2:21 pm
Taxes are not affected by foreclosure. No one gets clear title until they are paid. wg0z
June 6th, 2010 at 12:04 am
Delinquent taxes are not transferred to the new owner. The lender who owns the foreclosure pays the taxes. If they aren’t paid, the county takes over the property and sells it at a tax lien sale. The lender loses the house. So it behooves the lender to pay the taxes to protect their asset from seizure.
HOWEVER, if you buy the home at a tax lien sale, then the successful bidder pays the back taxes. A tax lien is where the county owns the property, not the lender. Dan B