If you lose your home to foreclosure do you still owe the back taxes once the house is sold at auction?
A relative lost their home in Jan 2009 and the county tax collector wants back taxes for 2008 & 2009 – about $4000 each year.
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They owe the taxes….the only way around that is if the tax-man liened the property prior to the sale..Then the new owner or bank would have to sort it out.
Whomever owns the home at the time the county tax collector is collecting, get’s to pay. Not necessarily the former owner. This should have been handled when the lender foreclosed and took title.
Depends on what state the property is located.
All foreclosure costs and the outstanding loan amount are included in Trustee Sale amount. Should the property sell at the Trustee Sale the new buyer becomes responsible for the taxes because it is a government lien. If the property does not sell at the Trustee Sale, the lender becomes the legal owner and is sold by the lender, usually through a real estate agent.
Generally speaking property taxes are attached to the property itself, not to individuals. If the property taxes are delinquent long enough the county will come and sell the property for the amount owed in back taxes no matter who owns the property. Any back taxes that are owned against the property are lien against that property, not the previous (foreclosed on) owner.
Depending on the state, but if it is a full recourse state then you will owe the back taxes and any deficiency amount to the lender. The lender will pay the back taxes and then come after you for the money. If it is a non-deficiency state, like California, you will own nothing because the property itself is the sole collateral/security of the loan.
Whomever name is on the deed during the tax year is required to pay the taxes for that portion of the tax year. Legally you owe the taxes.
In most foreclosure situations the lender or whom ever take the property normally pays the back taxes in order for the county not to file a tax lien and eventually the county foreclose on the property.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
Yes, you still owe all taxes.