Foreclosure in Minneapolis>Question Details

Shetaz, Other/Just Looking in Minneapolis, MN

I no longer have an escrow account. Should I continue to pay property tax if I stop paying my mortgage?

Asked by Shetaz, Minneapolis, MN Tue Sep 7, 2010

Help the community by answering this question:

Answers

10
You DO NOT HAVE TO PAY your property taxes in Minnesota. Property taxes follow the property (as opposed to you personally). If the property taxes remain unpaid, the county will eventually repossess the property and sell it in order to pay the taxes.

If your lender is foreclosing, they will eventually pay the property taxes to prevent the county from doing this. After all, your lender wants will eventually foreclose on the property in order to repay the mortgage debt they are owed.

You must pay association dues though in Minnesota. Association dues are considered a personal debt and the association may obtain a personal judgment against you for unpaid dues.
0 votes Thank Flag Link Fri Oct 8, 2010
Shetaz:
Did you stop paying your mortgage because your going into foreclosure?
0 votes Thank Flag Link Wed Sep 8, 2010
Talk to a tax attorney. you are liable for the taxes, unless they are paid by you, or your mortgage company.
0 votes Thank Flag Link Tue Sep 7, 2010
You should always pay your taxes, insurance and mortgage payments if you are capable to do so.

If you are considering a short sale, talking to a CDPE Realtor would be a good idea. Having someone that specializes in short sales and distressed properties that can give you all of your options lets you make an informed decision. Foreclosure and short sale are not your only options.

Sincerely,

Brian Amiot
Sorenson Realty
Realtor, CPDE, E-Pro
http://www.BrianAmiotHelps.com
612-251-8003
0 votes Thank Flag Link Tue Sep 7, 2010
You are still liable to pay the property tax as assessed by the county taxing authority. If your home is in Hennepin County, you can look up your tax record fairly easy online. See the website link below. You can click on property and enter in your address to see what you owe.

If you are unable to pay your monthly mortgage payment, you may want to consider trying to sell your house as a short sale. You will need to work with a real estate agent to do so. The real estate agent will have you fill out a lot of forms. From what I understand, selling a home as a short sale is not fun, but it is better than allowing your home to go through the foreclosure process.

If you allow your house to go through the foreclosure process, your credit rating will be hit hard and for a long time. If you can sell your house short sale (selling for less than you owe on it but at current market rate), you will be doing yourself and the bank a favor.

Let me know if I can assist you.

Take care,
Gina Schedivy


RE/MAX Results
0 votes Thank Flag Link Tue Sep 7, 2010
You say you no longer have an escrow account?? I wonder if you mean with the mortgage company. The mortgage company would pay the taxes to protect their interests. Talk to them.

I would consider doing a short sale on the property and the Realtor you choose can better help guide you.
0 votes Thank Flag Link Tue Sep 7, 2010
Shetaz,
If at all you can pay, you should... however, you would not be alone if you do not pay it. You should consider selling the property, if you are deciding to stop paying your mortgage. You should speak to your tax advisor and real estate attorney. Though it is possible that down the road you could loose the property in a tax sale, I think it is unlikely in this market that would happen.

Most property owners who have stopped their mortgage payments, have also stopped paying insurance, taxes, hoa, etc... Because their are so many distress sales hitting the market, most lenders have picked up the delinquent taxes automatically once payments have stopped.

The first thing you should do is contact your lender and explain your hardship and find out what options they have for you. Explain your situation and communicate with them. Having answers will alleviate a lot of anxiety and stress and will help in finding the best resolution for your situation.
Good luck.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Tue Sep 7, 2010
That depends on your intentions. If you intend to let the property go into foreclosure, then there is no point in paying property taxes. If you intend to do a short sale, you should consult with your Realtor on this. Not paying property taxes can also result in a forfeiture of the property but generally the mortgage company will foreclose before that happens.
0 votes Thank Flag Link Tue Sep 7, 2010
Shetaz,

Yes. You should continue to pay both property tax and insurance as long as you can. The county can also foreclose the property and the money owed will also need to be paid to them in the event of a short sale. Why not sell the house (even in a short sale) rather than stoping paying your mortgage?

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Tue Sep 7, 2010
You really should speak with a tax attorney or CPA on this; meanwhile, if you're thinking about letting the property go anyway, then you might want to consider selling with seller financing.

Please feel free to contact me.
0 votes Thank Flag Link Tue Sep 7, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer