Can "they" take away your house if...

[Zippyman]

Originally Posted by SOON2BNSURPRISE

So you buy a tax lien. What happens to the mortgage if the home had a mortgage?

The mortgage holder normally pays the taxes themselves & goes after the homeowner for those costs.
If the mortgage holder doesn't pay the taxes, they lose their interest in the home after a tax lien is perfected.
It's quite rare for this to occur, the only times I've heard of it happening were in areas with excessively high taxes & low home values (places like Detroit, where a home might be worth $10k, and have an $8k tax bill.).

[SOON2BNSURPRISE]

Originally Posted by Zippyman

The mortgage holder normally pays the taxes themselves & goes after the homeowner for those costs.
If the mortgage holder doesn't pay the taxes, they lose their interest in the home after a tax lien is perfected.
It's quite rare for this to occur, the only times I've heard of it happening were in areas with excessively high taxes & low home values (places like Detroit, where a home might be worth $10k, and have an $8k tax bill.).

Wow that would be insane.

A tax bill of $8,000 on a $10,000 home? Would that be because no one paid the taxes?

[Zippyman]

Originally Posted by SOON2BNSURPRISE

Wow that would be insane.

A tax bill of $8,000 on a $10,000 home? Would that be because no one paid the taxes?

lots of homes in detroit are "over assessed", and the tax rates in the city are very high - a $100k tax assessment might carry an annual tax bill of $5k.. so an owner bought the home for $100k, had financial problems & didn't pay the taxes for a year, then left the home vacant assuming they would get kicked out by the bank, looters came in and stole the copper pipes & the furnace & now the property is worth $10k & has a $8k tax bill.. very common for those "$1 homes" to have $5k in back taxes due..

[SOON2BNSURPRISE]

Originally Posted by Zippyman

lots of homes in detroit are "over assessed", and the tax rates in the city are very high - a $100k tax assessment might carry an annual tax bill of $5k.. so an owner bought the home for $100k, had financial problems & didn't pay the taxes for a year, then left the home vacant assuming they would get kicked out by the bank, looters came in and stole the copper pipes & the furnace & now the property is worth $10k & has a $8k tax bill.. very common for those "$1 homes" to have $5k in back taxes due..

OK, but when you buy won't they reassess the tax liability to the price you paid?

[Hal Roach]

You sue for QuietvTitle and the mortgage company gets zilch...that is way they generally don't trust the borrowers to pay their own taxes. The would likely be notified as owners of the deed of trust. Next month will be the sale for 2015 unpaid taxes....any from before that can be purchased anytime from the Treasurer. I picked up a 3.5 acre lot in Santa Cruz County....legal fees were about 1500. You are suing in Superior Court and will be issued a Treasurers Deed....completely sellable. Some of the developers don't pay taxes until the houses are built, and losing a few is just a cost of doing business. The interest doesn't compound....

[Hal Roach]

Originally Posted by SOON2BNSURPRISE

OK, but when you buy won't they reassess the tax liability to the price you paid?

Only in California...as far as I know...otherwise, it is suppose to be close to market on the date of appraisal...commonly less, but over the years they have gotten more aggressive. You will have windows to appeal. LargerLargerr municipalities have licensed appraisers on staff so the methodology is similar to how one would be done for a mortgage, with a little less winking and nodding. Always use an escrow company and demand that it is free and clear. Tit!e insurance will pay out if a skeleton emerges.