The bank foreclosed on home and has it up for sale. The city has sent the deceased owner a property tax bill and need to know if still liable to pay or does the bank pay the property taxes
If the bank foreclosed and was the successful bidder at the foreclosure sale, and the redemption period has expired, then the bank is the owner of the property and is responsible for the property taxes. If the property is vacant and the bank has it listed for sale, it is likely that the redemption period has also expired.
It is possible that the city treasurer has not updated the property owner information since the foreclosure sale.
Under Michigan law, property taxes must be paid in order to transfer property, so the bank (or buyer) will have to pay them.
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5 lawyers agree
I agree with my colleague. The bank gets the bill.
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2 lawyers agree
The answer is No, you do not have to pay the taxes. Best of luck to you - Reese Serra
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State, Local, and Municipal Law Attorney
I agree with fellow counsel. If the bank acquired title through a complete and proper foreclosure proceeding, it has the responsibility to pay the taxes as they are a lien on the property. The city cannot bill the estate for the taxes.
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