Home Buying in Oakland>Question Details

Sofille, Home Buyer in 60637

Developer owes back taxes, can't sell.

Asked by Sofille, 60637 Tue Feb 2, 2010

I am a week from closing on a foreclosed unit in condo building and just found out that the developer owes back taxes and is nowhere to be found. Closing date is pushed back by seller. Has anyone had to deal with this issue and what was the outcome?

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Answers

6
Matt Laricy’s answer
Lender usually pays back taxes if its foreclosed on. Thats what I ran into. Good luck on this one!!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlamericorp@aol.com
708-250-2696
0 votes Thank Flag Link Tue Feb 2, 2010
You just need to speak with your attorney about this. It is a legal question and can be affected by the way the contract is written.
0 votes Thank Flag Link Sun Jun 1, 2014
Lender is responsible to pay all taxes, leans etc if foreclosed. Developer is out of picture if He foreclosed on the property, Title should be marketable at that point without any leans in order to close.
0 votes Thank Flag Link Tue Feb 2, 2010
This is a case where you can have clear title to the unit itself, but if there is any litigation pending on the building as a whole, most lenders will not close.
0 votes Thank Flag Link Tue Feb 2, 2010
The developer owes taxes on the building as a whole, no taxes are owed on the unit itself.
0 votes Thank Flag Link Tue Feb 2, 2010
This makes no sense.

If foreclosure the lender pays those outstanding liens on property ie tax, and etc.

Builder would not be responsible for fact lender now owns the property.

Title company most likely working out these details have closed, you are not responsible. All these issues should have been resolved prior bank taking possession of property

You can't close till you have a clear title

Lynn911
0 votes Thank Flag Link Tue Feb 2, 2010
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