delinquent property tax v/s delinquent mortgage

Posted in the Bellefontaine Forum

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1 - 9 of 9 Comments Last updated Mar 13, 2013

“Life is G-R-E-A-T”

Since: May 08

Bellefontaine

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#1
Sep 5, 2008
 
Does anyone know if a property is delinquent on both property tax and the mortgage, which takes precidence? What I mean is, if a house is being foreclosed on for back mortgage, does the county have first rights to auction house for delinquent taxes?
justdamomma

Sevierville, TN

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#2
Sep 5, 2008
 
It would depend most likely as to how the mortgage is written I would think. Lots of times, the taxes are calculated into the mortgage payment. I would think if the mortgage company or bank that holds the deed, would take possession of the property, they would then assume the responsibility of paying the back taxes. They may have an agreement with the tax departments to allow the sale of the house at which the back taxes would be paid first and foremost, along with any fees acrued by the county for the sale of the property. All in all, though, I think the county/government has the right to take possession of any property for the purpose of settling a tax lien.

“Life is G-R-E-A-T”

Since: May 08

Bellefontaine

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#3
Sep 5, 2008
 
What you said, is along the lines of what I was thinking. I guess the thing to do is call the Auditors office and the bank that holds this mortgage and find out for sure.
justdamomma

Sevierville, TN

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#4
Sep 5, 2008
 
I found this:
The danger of tax lien foreclosures on the mortgage company is that the tax authorities can sell the property and realize the dues.

In the case of the property being sold by the owner before the government body takes recourse to tax lien foreclosures then the new buyer has to clear the dues. A title search will show up details of tax payments. So tax lien foreclosures means that the taxing authority forecloses on the unit to realize dues.

Tax lien foreclosures procedures vary from one state to another. If taxes are not paid within a certain specified time (even after receipt of many notices) the unit is seized and sold at a foreclosure sale. These are instances of tax lien foreclosures. In other states instead of tax lien foreclosures the lien may be offered to those who are investing as tax lien certificate. This will give the investor the right to foreclose or proceed with tax lien foreclosures as a tax lien sale.

So it does look like taxes first, mortgage 2nd. I've heard of a few instances when the "bank" actually bought the property back during a tax lein foreclosure and basically took possession of the property for just the back taxes.
hOTHEAD uGLY

Pataskala, OH

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#5
Sep 6, 2008
 
Flower Girl-84 wrote:
What you said, is along the lines of what I was thinking. I guess the thing to do is call the Auditors office and the bank that holds this mortgage and find out for sure.
keeping payment current avoids all these problems

“Life is G-R-E-A-T”

Since: May 08

Bellefontaine

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#6
Sep 6, 2008
 
hOTHEAD uGLY wrote:
<quoted text>keeping payment current avoids all these problems
It's not my property. It is a property we are looking at buying. Like I would come on Topix and talk about that kind of thing, if I was in danger of losing my house...Geeesh...
hOTHEAD uGLY

Pataskala, OH

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#7
Sep 6, 2008
 
Flower Girl-84 wrote:
<quoted text>
It's not my property. It is a property we are looking at buying. Like I would come on Topix and talk about that kind of thing, if I was in danger of losing my house...Geeesh...
wasn't necessarily pointing that at you
The Flip Side

Cleveland, TN

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#8
Sep 6, 2008
 
Before a taxing entity can sell a property for delinquent taxes, the mortgage holder is notified & given an oppurtunity to pay the taxes to avoid a sale. Unless the company has lost its mind completely, they will make sure properties they have security interests in don't wind up in tax sales.

That said, a tax lien/sale will extinguish any mortgage or other security interest, but I've never seen it happen unless the property was completely worthless.
NYcers

Bryn Mawr, PA

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#9
Mar 13, 2013
 
New York investors some of the biggest delinquent property tax payers in Pennsylvania. I'd hate to see how far behind on their mortgage they are. I think people under the guise of a business will try to get away with what ever they can and even intend to or count on using delayed tax payment to their advantage. The investors want the money to work for them.

http://articles.philly.com/2013-03-12/news/37...

In the Philadelphia area New York property owners/INVESTORS are some of the biggest dead beat delinquent tax payers around. They are just as neglectfull when it comes to correcting code violations and problems on the physical property.

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