Skip to main content

Mortgage company refuses to pay property taxes can the property be sold?

Chicago, IL |

the mortgage company filed for forecloser can the government sale the property for taxes owed? or will they make me pay.

Attorney Answers 5

Posted

Delinquent property taxes may be "purchased" at a tax sale by a private entity, but not by the government. If this happens to your personal residence, you have two years after the tax sale to "redeem" the taxes, that is, pay the tax purchaser the amount of the taxes plus interest, fees, etc. During this time, neither the tax purchaser, nor the government can sell the property based on the tax delinquency. However, the bank can press forward with its foreclosure during this time and obtain an order to sell it at a sheriff's sale before the tax redemption period runs out.

Mark as helpful

1 found this helpful

4 lawyers agree

2 comments

Asker

Posted

Wow! That was really helpful. Thank you

John Frederick Stimson

John Frederick Stimson

Posted

You're welcome. Let me know if you need help defending the foreclosure.

Posted

While a foreclosure action may be pending, you are still the owner of the property and obligated to pay the taxes or face the consequences.,

Mark as helpful

1 found this helpful

1 lawyer agrees

Posted

You are referring to a Tax Sale. The taxes can be "sold" and you have the right to redeem, ultimately a final tax sale defeats the mortgage so the lender will ultimately pay the taxes or someone who buys the taxes that are not redeemed will wind up with the property free and clear of the mortgage.

I am considered a "debt relief agency". I help Illinois people file for bankruptcy under the U.S. Bankruptcy Code. The information contained in this web site is intended to convey general information. It should not be construed as legal advice or opinion. It is not an offer to represent you, nor is it intended to create an attorney-client relationship. Any communication sent via the Internet using this web site would not be confidential and would not create an attorney-client relationship.

Mark as helpful

1 found this helpful

1 lawyer agrees

Posted

While your home is in foreclosure you are still the legal owner of the property. Technically it is your responsibility to pay the taxes. Sometimes if the Bank does not want to obtain possession of your property they will not pay the taxes. If after, I believe, 3 years the taxes are not redeemed a 3rd party can buy a tax deed.

Mark as helpful

1 found this helpful

Posted

Read Mr. Stimson's accurate comment above. In addition, if you are talking about a residential mortgage, the "mortgage company" that is suing you is almost certainly just a bill collector ("servicer"). The bill collectors have contracts with the owners of the mortgages to pay the taxes. The bill collector usually does this just before the tax sale. Sometimes, however, the bill collector waits until after the tax sale. There is usually a redemption period of about 2-1/2 years after the sale, so the bill collector can pay any time, either before the tax sale or during the 2-1/2 years after the sale, without losing the property. That is nerve-racking ordeal for you.

The good news is that, if the bill collector is not just pretending but actually allows the taxes to be sold, it probably means that the bill collector believes it has a weak case for foreclosure and wants to wait and see what happens in the foreclosure case. Do not pay those taxes for the bill collector except under the specific advice of an attorney. You should hire an attorney to investigate whether or not the bill collector has standing to foreclose. Often they do not.

Above all, please do not try to represent yourself.

Mark as helpful

1 found this helpful

2 comments

Asker

Posted

thank you I was discharged from debt in 2010. they already went to court for judgement for foreclosure and was suppose to auction off property in September but changed there mind a wanted to offer me a plan to keep the property which I don't want, I have not made any payments . I just them to take the property.

Robert Lee Stone

Robert Lee Stone

Posted

If you really do not want the property and want the foreclosure plaintiff to take it, you should sign a quitclaim deed to that party, send a copy to them, and record the original with the county recorder of deeds. That will free you from liability for maintaining the property and for injuries to visitors. Right now, it seems that you are the owner and remain liable. Also, although it is very rarely done, the county could in principle bill you personally for the unpaid real-estate taxes, and those cannot be discharged.

Real estate topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics