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When buying a house at a foreclosure auction, do you become responsible for previously unpaid property taxes?

Ok, so I have a little extra cash laying around, and after doing some research I have decided that I am going to attend a foreclosure auction and purchase a house, simply because you can get them for a little bit cheaper than on the open market. When these houses are foreclosed upon by each homeowners specific lender, I would guess a majority of homeowners stop paying their property taxes. My question is, does that lender become responsbile for paying those previously unpaid property taxes, or does the lender just leave the unpaid property taxes alone and then whoever buys the house at the foreclosure auction from the lender become responsible for the previously unpaid property taxes? I have no problem paying the auction price of what's left of the mortgage, but the hidden costs, things such previously unpaid property taxes, are the things that scare me about purchasing at foreclosure auctions. Anyone with any expertise in this area with advice would be appreciated. Thanks.

Public Comments

  1. All situations are unique. Property owner is responsible for taxes, regardless of who they are. Before making an offer, ask if there are any liens. Unpaid taxes will show up when you do a title search. You can demand the bank pay them or they can demand that the buyer pay them.
  2. Ok...people answering this need to know how property taxes work before they give advice. Property taxes "run with the land"...it doesn't matter who is on the deed...that is why you never see old property taxes on someone's credit report FOR REAL ESTATE because they are attached to the property and stay there until the home is sold. In most municipalities, the property taxes ALWAYS takes first lien position that is continuous....technically when you pay property taxes, the day you pay them a lien goes against the property for the next year...so it never goes away. It just is prioritizes as "due", "not due" or "past due". So the answer to your question is you should NEVER buy a foreclosed property without checking for liens the day before the auction...liens DO NOT prevent a property from being transferred...that is a myth...they just go to the person who purchases it. If you are a cash buyer, it's not a problem. However, a bank won't loan on a property without ALL prior liens being removed so they can remain in first lien position...other than property taxes. FEDERAL TAXES DO NOT take priority on a home, that is a myth...they take the next lien position like any other creditor.
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