Tax Sale Foreclosure: Does it affect credit reports?

5 Replies

I posted this elsewhere, but I’m thinking this is a better place to ask:

I have a property in PA in my own, personal name that I’m thinking of letting go to tax sale. Will this affect my credit reports in any way?

The property in question has no other liens or encumberances on it and is not listed as a current or previous address on any of my reports. If it sells at tax sale for less than the taxes owed, is there a potential for a deficiency judgment, or does that not happen with tax sales?

So you own it free and clear? I would assume that the county would file a judgment against you for unpaid taxes and that would end up on your credit report.

Yes,  free and clear.

At what point would they file a judgment?

@Mark Beekman Have you tried to sell for only what you owe in taxes? I am not sure what you owe or what your market is like, but it seems that this would be a better option than dealing with the judgement. I am sure you have considered this and attempted, but I feel like I have to bring it up just in case.

@Mark Beekman I seriously doubt the county would file for a judgment against you.  The taxes stick with the property. They always have the recourse of dong a tax sale, so I don't think any municipality goes after owners. 

I also would  not expect the county to report to credit reporting agencies either.

The above is not intended as legal advice. I would talk to a local attorney to go over your particular situation.

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