Upcoming Foreclosures

If I file for foreclosure can the government come after me for taxes on the property in 2010?

Public Comments

1. You are liable for any taxes accrued while you own the property.
2. No.... Nobody can come after you the mortgage company will be responsible for all the property taxes
3. That will depend upon state law as well as local practices. In most states, the lender winds up eating the taxes in order to preserve their interests. However if the mortgage is a recourse mortgage, they can add that to the debt that remains and go after you for that after the foreclosure. Some states mandate non-recourse mortgages for purchase money mortgages. In this case normally the lender cannot go after you for anything after the foreclosure; whatever they get when they sell the property satisfies the entire debt. However at least one non-recourse state, CA, allows certain property tax debts to be converted to a non-lien assessment against the former property owner and the local property tax collector will pursue the former owner for the taxes that were owed up to the date of the foreclosure. If the former owner then acquires another property in the state while the debt is still collectible, that assessment can then be attached to the new property.
4. You cannot file for foreclosure. Only the bank or other lender can file for foreclosure. You, the homeowner, cannot.
5. You don't file for foreclosure. The lender forecloses. You still owe property tax as long as you still own the property.