Chap 7, property taxes and foreclosure

[daylate]

Trying to understand all of these issues and making sure you do this as correctly as possible is mind-boggling

So my question today is- I have a 1st and 2nd-no equity-going to surrender in the 7
My understanding is that discharge (hopefully) will come before foreclosure...

Property taxes will be due shortly after filing but won't have adequate cash to pay because of exemption limits and even if I did, I'm not sure I can pay because it is now part of b-ruptcy estate and is before 341

So I don't pay (I assume I'm still liable because my name is still on deed)

A year later county puts a lien on for unpaid taxes

Foreclosure happens-the 2nd gets nuked,does the prop tax lien go away too?

Of course if foreclosure happens before one year from delinquency then there is no property to put the lien on.

Does the county take precedence over bank when property is finally sold and get paid first?

Any help/thoughts appreciated

[tobee43]

when you are in a chapter 7 and have surrendered your home, and the mortgage amount has been listed and is discharged you are no longer financially responsible for anything with the exception of HOA fees if they apply.

additionally, when the home goes into foreclosure and then sheriff's sale...all back taxes etc. are covered in the cost of the house itself...that's why you hear about these people picking up homes for X amount of small dollars in back taxes...since that's all that was owned. therefore, most of those cost are recouped when the property is resold.


it's not your problem who's on first....once you have surrendered the house that's the collateral that was and is the one and only requirement to meet your financial obligation.

while you name still remains on the deed itself...once again it does not hold you financially responsible...your name will be removed from deed either when sold or when and if they come to you and ask you to sign a warranty deed (they really don't want a quick claim...they are not as safe). and if they do, just make certain the paper work comes with a release as well.

[HakunaMatata]

If you're surrendering the house, don't pay property taxes (however, you should maintain insurance). Property taxes attach to the house, not the individual. Typically, lenders will cover past taxes.

In my case, I never had an escrow account (I handled property taxes and insurance on my own). I stopped paying my mortgage in July 09. Summer property taxes were due at this time and I didn't pay them. My house went to auction this past June. I'm considering redeeming it and I explored delinquent property taxes. My lender paid the 2009 taxes in full; although, the current (Summer 2010) taxes have not been paid. If I redeem, I will have to pay the property taxes. If I decide not to redeem, my lender (the auction winner) will pay the taxes.

[bigtim6656]

Here you do not get a lein for the taxes the house does. Here your ok till 15 months after the due date and then it goes on tax sale. My neighbor lost theirs to taxes but before the sale the bank paid them and foreclosed since they where behind in payments.
They also filed bk and divorced. As far as I know they end up paying nothing for taxes or to the bank. Their house with a 40k mortgage just sold 10 months ago for 6500

[bigtim6656]

I see that alot here, my mom and dad just bought a house for 300 bucks because the bank did not want it and the old owner (who filed bk and lost it) though still on the title did not want the 40k mortgage so they got it for 300 plus court cost.

If you're surrendering the house, don't pay property taxes (however, you should maintain insurance). Property taxes attach to the house, not the individual. Typically, lenders will cover past taxes.

In my case, I never had an escrow account (I handled property taxes and insurance on my own). I stopped paying my mortgage in July 09. Summer property taxes were due at this time and I didn't pay them. My house went to auction this past June. I'm considering redeeming it and I explored delinquent property taxes. My lender paid the 2009 taxes in full; although, the current (Summer 2010) taxes have not been paid. If I redeem, I will have to pay the property taxes. If I decide not to redeem, my lender (the auction winner) will pay the taxes.