Posted on: 07th Jul, 2008 02:32 pm
If the bank takes the property after foreclosure (thus, an REO), who is liable for the past property taxes? the previous owner or the bank/lender ( who is now the property owner?)
Hi Jon.
Welcome to the forum.
In the foreclosure sale the past property taxes needs to be paid first. So after paying of the property tax the lender will get his money back. If the foreclosure proceeds are not sufficient to pay off the lender then he can claim deficiency judgment to the borrower.
Feel free to ask if you have any further questions
Best of luck.
Larry
Welcome to the forum.
In the foreclosure sale the past property taxes needs to be paid first. So after paying of the property tax the lender will get his money back. If the foreclosure proceeds are not sufficient to pay off the lender then he can claim deficiency judgment to the borrower.
Feel free to ask if you have any further questions
Best of luck.
Larry
ok, thanks. another question. what if the lender buys the property at the sale and then pay off the taxes. (1) can they go after the borrower for a deficiency and (2) if so, how does the bank do that - do they have to put language in the judgment and include that in the figures?
thanks !!!
thanks !!!