What happens when past homeowners have unpaid back taxes? The home may become at risk for foreclosure if the new owner skipped title insurance. Q: I bought a home back in 2013. I received free and clear title to it. However this week I was served with papers for foreclosure due to the previous owner's [...]
If I pay back taxes on a property do I own it? This reader wants to know how the system works and if he becomes the property owner when he pays back taxes. Q: If I pay the back taxes on a property do I own it? My parents are about to lose our family [...]
Buying a foreclosed property might include taking ownership of unpaid back taxes. If you buy a foreclosed house with liens or back taxes, you could be held responsible for paying the liens and back taxes upon purchase of the home or property. Buying a short sale should not make a buyer subject to liens or back taxes. Know the difference between a short sale, foreclosed property and an REO property and make sure you research the property to see if the home has any unpaid real estate taxes or liens.
If homeowners don't pay your real estate taxes, the tax collector can seize your house and sell it for the back taxes that are owed. In most places, the taxes have to have been unpaid for at least a year or two and the homeowner has the right to catch up on the taxes by paying the interest that has accumulated plus any penalties or fees. The catch is, there is a period of time where the homeowner has the right to catch up with the back taxes payments and pay you back your investment plus interest.
