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Jason, Home Buyer in Oakdale, CT

Who is responsible for back taxes after buying a foreclosure?

Asked by Jason, Oakdale, CT Sat Mar 5, 2011

I purchased a Foreclosed home August 2010 in Salem Ct from Fannie Mae. I was under the impression that the title was free and clear by my attorney. I received a delinquent tax bill 6 months later from the town. As I looked through the paper work for the title, I went to the exception page, and found this "The lien for all municipal taxes on the list of October 1, 2009 and thereafter. This policy insures that said taxes are current and that the next installment payment is not yet due and payable." So to me, It appears that this was found on the title search, but the message was never conveyed to me by my lawyer. To make matters worse, my lawyer has passed away, and will not be able to confirm that she did or did not disclose this information to me. A question I have about the exception statement, It calls out the tax lien, but then the second sentence says " This policy insures that said taxes are current:", What is meant by "SAID" Taxes?

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Jason,

I am sorry for the confusing situation that has been foisted upon you. Take a breath and realize that there is little that you can do until you are able to talk to those who are or were involved in your purchase – your Realtor, the title company and the law firm of your late attorney. There is little help that we can provide on this forum since we do not have the complete details of your transaction. In addition, the advice that you are seeking is legal advice in nature and most of the folks on this forum are not attorneys.
0 votes Thank Flag Link Sat Mar 5, 2011
I'm dying to call anyone.. lol.. I didn't open the letter till 7pm last night, and everything is closed on Saturday. My Realtor was present. Even though my lawyer passed away, I would assume that the firm still holds some level of accountability. I plan on calling the title company first thing Monday morning, but I have a gut feeling that I'm going to take the hit on this one. Because I had to sign the 28 page Fannie Mae addendum, there is all sorts of verbiage that pretty much makes them unaccountable after the fact. I was under the impression that all of these types of debts were suppose to be settled with the foreclosure process. And I was also under the impression that my lender wouldn't fund a loan against a piece of property that had a lien on it. But from looking at the paper work now, there is the exemption made by the title insurance company that I pointed out above which I'm thinking will clear them of all responsibilities, but I don't know how to interpret the part that says " This policy insures that said taxes are current". I'm actually really annoyed, because this is why I hired a lawyer, I did everything I was suppose to do, and this would be the lawyers job. Ultimately I'm probably going to be responsible because I didn't read the title insurance policy, but its unrealistic to read and interpret all of the documentation at closing time. There are probably close to 200 pages of documents that I have signed or are part of my closing package. As a first time home buyer, I'm relying on the professionals I have hired and I have been let down.. Sorry for the little rant, but I don't really want to pay someone elses tax bill from the year prior to me purchasing the home.
0 votes Thank Flag Link Sat Mar 5, 2011
Jason,

I would call the title company and see what they have to say. I would also consult a real estate attorney who can look over the title policy and all closing documents to advise you as to what your legal options are if the title company refuses to cover your loss, based on the fact that your attorney, at the time, is now deceased and did not advise you of the tax liens on the property. Was there anyone else with you during your closing?
0 votes Thank Flag Link Sat Mar 5, 2011
To interpret what "said" taxes are will not get you out of your delinquent tax situation. One clear option will be to consult with another Real Estate Attorney to sort this out for you.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sat Mar 5, 2011
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