Property Tax Liability After Foreclosure in Astoria
Each year your local property taxes are assessed based on an Assessor’s assessment, which is generally updated every five years. If you neglect to negotiate for a property tax lien release during the time of your foreclosure, you will pay thousands in property taxes that you should never have paid in the first place. But it depends on whether you will save your property from foreclosure or not and what your state is.
If you can save a house
It means that you could be paying property tax that you could have saved by negotiating with the county. Think about it. If your mortgage company or realtor has recommended that you pay taxes at their property value, you are getting what you agree to pay, not what the county is telling you is their property value. The Assessor’s office simply takes your property tax payment and adds it to the following year’s property tax total. While it may sound good, in the long run, you may be losing money.
A better alternative to having a property tax liability increase is to foreclose, lose the house, and then attempt to sell it at auction, when the value may be far less than the property was worth at the time of your foreclosure sale. You can go online to view and list hundreds of homes for sale in your area at once.
Negotiate with your lender a re-settlement package
This is usually completed after negotiations with the county over your property tax liability after foreclosure. The goal of this is to have you pay less money overall because the balance of your loan is more than the value of the property at the time of the foreclosure sale. The bank will re-evaluate your home’s value and forgive your mortgage for the difference between the loan balance and the current fair market value.
If these options do not work out, your next course of action is to sell your home yourself. If you are experienced with this type of transaction, you can attempt to list your home yourself. However, this can take some skill and knowledge. If you fail to list your home for six months or more, your lender may be very disappointed with your inability to find a buyer and may decide to pursue foreclosure. Listing your home yourself can also be a time-consuming process and may not attract any buyers. Besides, if your lender files a Notice of Default, you may lose your right to redeem your home.
If you can’t save a home from foreclosure
In that case, you do not need to pay the property taxes, and actually, you shouldn’t. After your lender forecloses, all amounts you owed, such as the taxes, are satisfied from the property’s transfer to the lender under a foreclosure deed.
The property taxes are a debt against the property, not against you. In Astoria, that period is three years.
As a rule of thumb, most possessions subject to a mortgage won’t ever confront a tax sale because the lending institution will advance cash to cover the delinquent taxes. The lender will then require compensation from the borrower. If it goes unpaid, the lender may foreclose on the home, just exactly like it will if the conventional loan payments are delinquent.
The fine print in a mortgage contract says that the borrower must maintain current taxes, and failure to do so is a monetary breach that may subject the home to foreclosure. Since you’re facing a foreclosure anyhow for nonpayment of the mortgage, your nonpayment of the taxes won’t ever matter. If you are unsure about your actions, contact an attorney to get the best option available.