When a bank goes thru with foreclosure, when and who pays the past due real estate taxes and condo fees?

Asked over 1 year ago - Jupiter, FL

Current sales contract for comml condo in forelosure is right at banks inflated payoff but not enough to pay past due real estate tax and condo fees.
Bank won't budge and seems to want foreclosure rather than shave $5-7,000. From bank payoff figures
When are the taxes and condo fees paid after foreclosure date?

Attorney answers (3)

  1. Barbara Billiot Stage

    Pro

    Contributor Level 20

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    Lawyers agree

    Answered . Until the bank takes title it is not liable for the taxes and fees. Sometimes the banks pay them while the unit is in foreclosure, but with the large number of foreclosures that is not happening often. The owner is still liable for these costs and even if the unit sells, the seller can go after the previous owner for the condo fees.

    This communication is not intended to create an attorney/client relationship. It is always recommended you consult... more
  2. Jacqueline Alicia Salcines

    Pro

    Contributor Level 16

    4

    Lawyers agree

    Answered . The taxes are usually paid by the lender and added to your final judgment

  3. Sheryl Ann Edwards

    Pro

    Contributor Level 12

    4

    Lawyers agree

    Answered . In order for you to have the bank waive any amounts from its payoff, you are going to need to apply for a short sale. That can be a long process.

    The taxes are typically paid on an annual basis by the servicer, even if you have not been making your monthly payments to the lender. If they have not been paying them and the foreclosure is completed with the lender owning the property after the foreclosure sale, the bank will need to pay them before they sell the unit. Condo fees are capped at 1% of the original loan balance or 12 months of past due condo fees, which ever is less.

    This information is being provided for informational purposes only and is not to be taken as legal advice or to... more

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