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Deed in lieu (continued)

Posted on: 12th Jan, 2007 11:38 am
the bank has said they will except a deed in lieu of foreclosure. they have said the title must be clear. does that mean you can't have any unpaid property taxes? i have not paid the one due 12/10/2006.
thank you
Hi Csaubrey,

If the property tax dues are not cleared before the bank takes it by way of deed in lieu then the tax lien will exist over the property and they do not want to take over any property with a lien on it.

To make the property title clear you will have to pay off the tax dues.

David
Posted on: 12th Jan, 2007 11:49 am
yeah csaubery

If you haven't paid property taxes, then after a certain time period the Internal Revenue Service will put a tax lien on your property. So title will not be clear. Thus the need to pay property taxes.
Posted on: 13th Jan, 2007 11:06 am
BTW how much is the unpaid amount? If it is not a large amount then I would recommend that you pay it off so that the bank won't have any objection to accept the DIL.

Dacascos
Posted on: 19th Jan, 2007 12:16 pm
yeah Csaubrey,

If property taxes are not paid off in time, the fedral government may place a tax lien on the property.

Now, if the bank takes away property from you, and then the lien is placed, it cannot get a suitable price for selling the property. So, it has to remove the lien or get a lower price as the new buyer will have to pay the unpaid taxes to clear the title off the lien.
Posted on: 20th Jan, 2007 04:39 am
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