When the lender forecloses and sells the property the taxes will be made current so the property can be sold lein free, BUT will the lender be able to pursue collecting the portion of the unpaid taxes that were your obligation after the fact or sell that "debt" to a collector who may pursue it? and how much will that increase the costs? Again talk to the attorney.
I'll go all Zen on you by saying unless you are fortunate enough to be in a nonrecourse situation, your going to otherwise have to pay one way or the other. (Consult an attorney for best info on this). If you want to be fair and proper about it you can always calculate a per diem to your sale date and send that in for what you rightly owe... Just one idea.
As others have said, unpaid taxes and penalties attach to the subject property. They are not usually considered to be your personal debt obligation.
The city and county will probably get an extra 10% more from the bank because of the late penalty, than they would get from you if you pay these taxes before the 10th. So the government will still get the money that it needs, eventually, for those taxes whether you pay them or not.
Same as everyone else: I am not a lawyer. Those are just my citizen opinions. NOT legal advice.
So if you have lived in the property during the times that the taxes provided you service, do YOU feel you should pay your taxes?
We as realtors are not tax or legal experts, but we are your neighbors in the community. We are part of the community that is being affected as well. Each homeowner has to consider how they are affecting the rest of the community.
I expect that the reason for your attempted short sale and expected foreclosure is because of a hardship. I am sorry for your circumstances, but only YOU know whether, because of your non payment of your mortgage, you can pay the taxes as you exit the property.
I hope that 2011 is a much better year for you and that you find much to look forward to.
Sorry to hear you are losing your home, wishing you and your family the best
Also remember mortgage loan payments, property taxes, insurance premiums, and monies spent on home maintenance are not entirely lost. Some of these payments are deductible on income tax returns. Another good reason to consult with your CPA.
As you are preparing for foreclosure, another item to consider is that lenders or their servicing agents are willing to pay â€œcash for keysâ€ to obtain possession after the foreclosure sale has been conducted. Although lenders or their servicing agents are not required to make these payments, you have nothing to lose by asking for them.
My best to you as you move forward and look to brighter days and second chances my friend!
But I can't tell you whether you should pay your property taxes because I can't give you legal or tax advice. I can tell you that among my clients, not one tax accountant has come up with a good reason for them to pay property taxes during a short sale, but that's not saying your accountant wouldn't have a different point of view.
Lyon Real Estate
DRE # 01326917
Ferdig Real Estate Solutions