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What happens if I don't pay property tax?

If a home is pending foreclosure, what will happen if the property tax isn't paid? will the IRS get involve? will the owner be resposible for anything in the future?

The owner is responsible for the property tax, and the town will be early in the list of debtors that will be paid off when the foreclosure occurs. tb

When anyone neglects to pay property tax the tax is "sold" on the courthouse steps and it is bid on for a specific interest rate. So say you owed 1000. Just to make it easy. The people who buy the "TAX DEED" get it for 15% that means when you do pay the tax or when anyone else pays the tax they will have to pay the extra interest rate too. USually if there is a loan on the property the lender will try to "buy the tax deed" so that they can avoid a foreclosure on the taxes. Taxes take priority over the mortgage so who ever owns the tax deeds can wipe out the mortgages after a certain amount of time. If this is interesting to you-go to the library and do some research there are books on this subject!

You are responsible to pay those taxes. If you don't they will find out where you bank at and they will put a freeze on your checking account until you pay it. No the IRS will not get involved unless you don't pay it once your account is frozen and it goes deeper into collections.

If the house is in foreclosure and you do not pay the property
tax, your bank will typically pick up the bill and then try to get the funds to cover it out of the proceeds of the foreclosure
auction.

Real estate tax is a first position lien on the property, and the bank will pay it since they do not want the property to
be sold off by the city/county at the tax lien auction, as this action will wipe out the mortgage banks interest.

Also, if there are not enough fuds from the auction to cover all
debts and expenses, the bank will typically send you a 1099
for the difference and report same to the IRS.
You may want to discuss what impact this may have with your accountant.

Regards,
Jake Komar
National Properties Group Inc.

Property taxes take precident over all leins including the first mortgage.

It will get paid at the time of the foreclosure sale.

Whatever is left will be distributed to the first lein holder, then the 2nd, etc.

Hope this helps.

Death and PROPERTY TAXES are 2 things you cannot avoid

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