Impound Accounts and tax delinquency

5 Replies

I am looking at the tax delinquency list in a county in Oregon and wondering if a person is delinquent more than a year or two, can it be inferred that they own the place free and clear? If they didn't wouldn't the impound account on the mortgage pay the taxes on time (assuming it's not a private lender)?

Any guidance on this would be much obliged.

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Apparently delinquent taxes sometimes slip through the cracks. We bought a house this year from an owner who was delinquent and had a mortgage. It wasn't caught until the title search. 

When we had a mortgage we paid our own taxes - no impound account. Sometimes the mortgage company asked for a paid tax receipt, but not every year.

@Wayne Brooks  Thanks for the heads up. Do you know if they are going to auction because mortgages don't have impound accounts in Florida, or because they simply don't check it/care? Also, what's the time limit down there for properties to be seized by the government if they haven't paid their property taxes? I would imagine a lender would have to take action if it was going on for several years.

@Sylvia B.  Great input. Was the back tax issue resolved fairly easily with the seller paying them due to a clause in the contract? Or did you have to take another route?

@Neal Collins   The title company took care of it. We wouldn't even have known there was an issue, but the title co. rep mentioned it during closing. She's a friend and we chat about a lot of stuff before/after signing all the papers.