Foreclosure in New Jersey>Question Details

jacquelinemt…, Both Buyer and Seller in New York, NY

When my house goes into foeclosure, am I responsible for taxes, etc.?

Asked by jacquelinemtdr, New York, NY Sun Mar 24, 2013

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Diane Glander’s answer
You are responsible with all costs associated with the property including water/sewer, municipal taxes, mortgage payments, etc.
If you believe your home is going into foreclosure, you should speak with your bank immediately. You might be able to work out a refinance or loan modification. If not, see if you qualify for a short sale. In this scenario, the bank covers all outstanding fees, including Realtor commissions and attorney fees. And, if you are eligible, the HAFA program even pays your moving fees!
Good luck!
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Mar 25, 2013
you could be responsible for everything the bank has paid until the day of foreclosure.

I just had a conversation with someone after foreclosure... Havoc wrecking problems...

Short sale if you can or deed in lieu. Negotiate now. You may want to speak to an attorney for advice how to handle any future claims brought on by bank against you.
http://sellitfast123.com/deficiency-judgement/

But a short sale is much better than a bankruptcy...

NJ LAW Deficiency Judgments: Allowed if brought in separate lawsuit within three months after sheriff sale. Amount of judgment is restricted to difference between fair market value and loan.
Limits on Deficiency Judgments: Judgment allowed only on the note after foreclosure, but no personal deficiency judgment allowed. Deficiency is limited by the fair market value of the property, and action must be brought into court within 3 months of sale.

In NY deficiency requests are done by motion at time of proceeding Fight it. You could at least be warded the difference between market value and sold value at sheriff sale. Otherwise they will get what ever they ask for. Get an attorney it will be worth you money.

It may too late but always try!

Search Short Sales and foeclosure Deals at http://www.BuyNjShortSales.com

Larry Sarlo
RE/MAX Preferred
609-868-1171
lsarlo@comcast.net
http://www.larrysarlo.com
0 votes Thank Flag Link Sun Mar 24, 2013
Yes, also if the bank loaned you 400,000 for the house and it only sells for 200,000 in foreclosure, the IRS considers the difference as income and taxes you on that also.
0 votes Thank Flag Link Sun Mar 24, 2013
Once the foreclosure is complete--once the deed is transferred to the lender or someone else--you are no longer the owner and no longer responsible for taxes, etc. Until that point, however, you are.
0 votes Thank Flag Link Sun Mar 24, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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