property scheduled to close got seized by the tax authority
Hi,
I have a property that I am supposed to close on Monday, but apparently the owner hasn't been paying property taxes on it, and it has been seized by the tax authority to be listed for sales. Has anyone experienced anything similar, and is there anything I can do make this transaction go through other than just hope that the owner will buy back the property from the tax authority? Thank you for your help!
If it's already getting into closing, the taxes should be paid out of proceeds of the seller.
If there is not enough money in sales price - it's a lien on the house anyway.
Maybe to call sheriff department of that county and auditor? There will be someone who knows what's going on
@Irina Belkofer Thank you. is it possible to put that into the closing doc so the part of sales proceed will go to the tax authority?
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#1 Foreclosures Contributor
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If it is a “regular” sale, all debts on the property get paid out of the seller’s proceeds. We’re not sure what “seized” means.....typically if it is scheduled for a sale, the taxes can always be paid up until the sale, with possible redemption rights afterwards.
You need a clearer understanding of the process, your title co. will know what to do.
Thank you! just got word from the title company that they can probably do something about it! :)
Originally posted by @Michinori Kaneko:
@Irina Belkofer Thank you. is it possible to put that into the closing doc so the part of sales proceed will go to the tax authority?
If we are talking Sheriff sale - there is no purchase agreement. You come to the auction, bid, win, pay cash or bank check, they give you receipt - done. Then you pay balance on the sale amount usually within a week for free, within 30 days with 10% interest - and wait till the deed is ready
You can during that time to ask your title company to do the search and extend the title insurance but it's not for mechanic liens or taxes - you'll pay all that.
That's why it's important to research the property through before you say "bid". I've seen people were happy buying a townhouse for $8K with tax debt on it for $18K. Needless to say that they got foreclosured in couple years as well.
Do your due diligence to the best your abilities. Nothing is guaranteed with Sheriff sale