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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