Posted on: 16th Aug, 2010 08:54 am
I bought lots 3 years ago in SC. The prices dropped to less than 50% of the cost. My husband and I are planning on foreclosing the loan. Would we be responsible for anything after non-payment of the loan, i.e., real estate taxes?
Hi jane!
Welcome to forums!
If you let the lender foreclose the property, then he would come after you for the deficient balance resulting from the property sale. If the lender forgives the deficient balance resulting from the sale of the property, then depending upon the Mortgage Debt Relief Act, you may not be responsible for paying the taxes on forgiven debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you let the lender foreclose the property, then he would come after you for the deficient balance resulting from the property sale. If the lender forgives the deficient balance resulting from the sale of the property, then depending upon the Mortgage Debt Relief Act, you may not be responsible for paying the taxes on forgiven debt.
Feel free to ask if you've further queries.
Sussane
thanks Sussane!
What about the real estate taxes?
What about the real estate taxes?
I don't think you would be liable for any real estate taxes.