Do You Pay Your Property Taxes When in Foreclosure?Return to Videos
There’s always a question, do you pay your property taxes or not? And the truth is that this is one of the silver linings in foreclosure. Most of the banks have contractual obligations with the actual investors, people that own the loans, that says they’re gonna pay the taxes if you don’t. And the reason why they do that is because, if the property ever got sold for taxes, everybody loses.
The bank is knocked out, the other judgment creditors, anyone with a lien on the property gets wiped out, the property gets sold for taxes. And if per chance they don’t pay the taxes for you, it usually takes years, much longer than a foreclosure, for the property be sold at a tax deed auction.
And you’ll get notice of the tax deed auction before that sale happens. As long as you pay the taxes before the date of the tax deed sale you could save your property.