back property taxes owed

Get Legal Help Today

 Secured with SHA-256 Encryption

back property taxes owed

Is there a way to sell a building that has property taxes owed? Can they be paid with the proceeds from the sale?

Asked on May 10, 2009 under Real Estate Law, New York

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Yes to both questions.  In fact it is done all the time.

I assume since back taxes are owing that your mortgagor has not stepped in to make the payments which is something that they can do.  That being the case, the mortgage and taxes will get paid off and then you will receive the proceeds, if any.  To the extent that the proceeds aren't enough to cover the taxes owed, you would be liable for their payment.

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Depends.  Is there a lien on the house? Who has the lien? In most circumstances, if let's say you owe property tax, and you didn't pay it, and there wasn't enough in your escrow account to pay, the mortgage lender/servicer will pay it and put itself in first position on the debts owed.  Why? Because taxes always trump other debt.  If the debt is now most likely gone, all you have to deal with is your lender.  If you sell your house, which is security for the loan, and there isn't enough (i.e., short sale), in most states you will be responsible for the deficiency and the lender can sue you.

If none of the above is the case, and you owe directly to the government, and the government hasn't put a lien on your house yet, when you sell the house, make sure you sell for more than you owe in total so there are no issues with payment.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption