Will a bank issue a mortgage on a property that has a tax lien on it?

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

I bought a foreclosed home in August 2010 from fannie mae, and I'm being asked to pay backed property tax from 2009. I looked at my title insurance policy, and unbeknown to me there was a exception on it that states " 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." My Realtor and attorney never told me anything about this. If the exception on the title policy is showing a real estate tax lien, how could my bank authorize the loan? Something doesn't seem right, and I already pay my own taxes, and I don't want to pay someone elses.

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Janet Swider, Agent, Colchester, CT
Sat Mar 5, 2011
Candace gave you some good advice..also you can go to the town clerks office to see what lis pendens are on the address you purchased just in case there is anything else that needs to get taken care of at the same time. In the future it may be a good idea to do this process before you close. Most title searchers find these liens prior to closing. I am routing for the positive that they are taken care of "your back taxes" Good Luck in your new home.
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Candace Lipi…, Agent, Norwalk, CT
Sat Mar 5, 2011
At this point you should discuss this with an attorney as mentioned below. In the meantime, go to town hall and speak with the tax assessor. Someone in that office may shed some light on your issue.
Also, you may want to contact the Bank you purchased the property from. They may have paid it and it possibly wasn't recorded. An attorney who is an expert in this will advise you further.
I am sorry you have to deal with this. As Realtors, although many will say they are experts in this, we do not have the licensed skills, as mentioned below, to answer further on this.

"Your Beacon to Fairfield County Lifestyles"

Candace Lipira, Realtor
Keller Williams Platinum Properties
203-856-8501 cell
203-544-9786 home
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John Juarez, Agent, Fremont, CA
Sat Mar 5, 2011
Talk to your Realtor. Talk to your attorney. Talk to the title company. They are the actors who are involved in this drama. Those of us who are in this forum do not have the details of your transaction that would allow us to provide expert advice.
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