Asked over 4 years ago - Jacksonville, FL
FlagMy house will go on foreclosure. Do I still need to pay real estate taxes?
Thanks for your question. Since I am an attorney, I cannot ethically give you specific legal advice on your situation, since you are not my client, but I can only provide you with general information that you may find helpful.
If you do truly plan to let the house go back to the lender, you do not have to pay the taxes now. Just be aware that there is likely to be additional fees and charges that may be levied against your account by the lender.
The best advice that I can recommend to you is to contact a local attorney that specializes in foreclosure defense work, and can work through your options with you. I would strongly encourage you to act now to protect your rights. Most people just want to put off the unpleasantries of having to deal with this when they are in trouble, but the sooner you address the situation — you may discover that you have options you did not realize.
Best of luck,
Shawn C. Newman, Esq.
Attorney At Law
1881 NE 26th Street, Suite 212E
Wilton Manors, FL 33305
(877) 552-9385
Shawn@ShawnNewman.com
No. Eventually when the lender completes the foreclosure it will take care of the taxes, if not before. However, it will add that amount to what it feels is due from you in connection with the mortgage. Either during or after foreclosure, the lender can ask for a judgment for the difference between the total due including costs, fees and advances, and what they realize on the property. Once they get that judgment, they can then levy on other assets of yours. In Florida, judgments can also be collected by garnisment of wages.
However, if you qualify for Chapter 7 Bankruptcy, you can probably discharge the excess judgment in bankruptcy.
Unfortunately, while the lenders and the media are telling people to contact their lenders to "work with them", in practice there is little or no help there, and in fact, it can actually make matters worse, because IF they will do anything for you, it is very temporary, and they add any concessions they make to the total loan balance, making matters far worse ultimately, since most loans in Florida are upside down.
If you want to try to prevent or avoid foreclosure, your best option it to consult a knowledgable foreclosure defense attorney. You are fortunate because the some of the attorneys at Jacksonville Legal Aid are extremely knowledgable and effective in this regard. If you qualify for legal aid, they might be able to do quite a lot to help, and if you do not qualify, they undoubtedly can refer you to private attorneys in the area who can properly analyze your case.
Be very careful though. People on the brink of foreclosure in Florida are being bombarded with mail, phone calls, even people coming to their door, trying to get them to hire them to help. My clients have brought me many of these solicitations, some of which are downright misleading.
It is for that reason that I try to make people aware of NACA - National Association of Consumer Advocates, www.naca.net which is a legitimate consumer advocacy organization. The foreclosure defense people at Jacksonville Legal Aid are members of NACA and really do know what they are doing.
If you do not plan on defending the foreclosure, you should not pay the real estate taxes. That can be paid by the mortgage company when they foreclose, as the real estate taxes are attached to the property and not to the person.
If you plan on keeping the property, you should pay the real estate taxes.
If you want to keep the house, I would suggest calling your mortgage company and negotiating with them to get a payment you can afford or do a modification that would allow you to catch up on your payments and pay the real estate taxes too. The great majority of lenders are now willing to negotiate with borrowers to allow you to stay in the house.
If you want to let the property go or cannot work out a new deal with the lender, I would suggest attempting a deed in lieu of foreclosure because it will affect your credit less than a foreclosure. If the property is your primary residence, you can receive a tax break on any amounts written off by the lender.
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