Posted on: 27th Jan, 2009 02:55 pm
About four years ago, myself and two other people went in together to buy a small city lot. All of our names are on the title. During these four years I have been paying the taxes and upkeep (mowing) on the property with no help from them. One person agreed to sign off on the property but the other refuses to sign off and refuses to help with any future taxes and upkeep. I have been told that the only way out is to let it go for back taxes so I have stopped paying taxes. Is this my only option?
Hi smo,
I don't think stopping the payments of taxes is a good idea. You can try to buy out the person who has refused to sign off the property to you. You can offer him a certain amount of money and ask him to sign a quitclaim deed in your name.
If that person is not ready to do this, then you may file a partition lawsuit. Once you file this law suit, the court will sell off the property and satisfy the loan. After this, the excess amount will be divided amongst three of you.
Thanks
I don't think stopping the payments of taxes is a good idea. You can try to buy out the person who has refused to sign off the property to you. You can offer him a certain amount of money and ask him to sign a quitclaim deed in your name.
If that person is not ready to do this, then you may file a partition lawsuit. Once you file this law suit, the court will sell off the property and satisfy the loan. After this, the excess amount will be divided amongst three of you.
Thanks
Thanks jameshogg,
Can't buy him out, he won't sell. There is no mortgage on the property to pay off. Court costs would exceed the value of the property even if they could sell it. The lot is too small and the location would hinder its value to anyone. Not paying the taxes would cause the state to take with no bad credit implications on me.
Thanks
Can't buy him out, he won't sell. There is no mortgage on the property to pay off. Court costs would exceed the value of the property even if they could sell it. The lot is too small and the location would hinder its value to anyone. Not paying the taxes would cause the state to take with no bad credit implications on me.
Thanks
Hi Guest,
In that case, you will have to negotiate with the other party and come to a solution. If you do not pay the back-taxes, then the IRS will place a lien on the property.
Thanks
In that case, you will have to negotiate with the other party and come to a solution. If you do not pay the back-taxes, then the IRS will place a lien on the property.
Thanks
I assume you are talking about property taxes, not income taxes. If that's the case, it would work in transfering the property. The local taxing authorities would take the property and auction it for the back taxes. You could buy it at that auction, and there would be no credit reprecussions that I know of. This will probably take several years though since they usually wait until there are 3 or 4 years of back taxes due, at least in Tennessee, that's how it works.
Thanks all,
Bill confirmed what I was told by others. So I will take a 3 or 4 year waiting period and see what happens.
Bill confirmed what I was told by others. So I will take a 3 or 4 year waiting period and see what happens.