Friday, March 28, 2014

Am I Liable for Real Estate Taxes After Surrender My Home in Bankruptcy?

Real Estate Tax Liability
 
 

 You are NOT likely to have any liability on the real estate taxes due on property you surrendered during bankruptcy.
“Likely?”  you ask?   That is right,  in 99% of cases you will not hear a word from any taxing authority or collector.  However, in some cases, the lender, who is now authorized to foreclose, can take a long time to do so.   These lingering foreclosures have now earned the name “Zombie Foreclosures.”     In these cases, the taxing authority must still attempt to collect taxes and as the last record owner, you are likely to keep on getting bills.   Where else can they send them?

 In most cases your lender has a strong incentive to pay these taxes and will do so to protect their investment.  Assuming the property is foreclosed, a bankruptcy debtor is likely to never hear anything in the future.   But, if the Zombie Foreclosure lingers for years, and the lender does not pay taxes, then the taxing authority (and a homeowners association if it exists) can seek  payment from you even in the face of your bankruptcy.    This is very rare, and the laws are likely to change to close this gap, however, it is a possibility so I like to mention it.   If you suspect you are the victim of an ongoing Zombie Foreclosure, we do have some legal means to limit or eliminate your exposure.  Give us a call at 678-732-0001 to discuss further.
References: http://www.nolo.com/legal-encyclopedia/vampire-foreclosures-when-homeowners-remain-the-home-after-foreclosure.html
https://etax.dor.ga.gov/ptd/county/search.aspx

 

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