Unpaid Property Taxes
I was just informed by my refi officer that there are outstanding taxes on my property. I have all of my taxes escrowed, so these were unpaid taxes by the prior owner. I was under the impression that these issues were cleared at closing (at least that is how it has been at other closing). I have not reviewed my settlement papers, but I will do so as soon as I get home. I can not see how I could have a tax lien on my property for taxes that I were not paid prior to my purchase of the units. The price had almost doubled due to the late fees. I would not have know anything about the unpaid taxes if I had not done the refi. What TRICK!!!
Depending on how much is owed, I'm sorry to say that it is likely not worth your time to try to get someone else to pay for their mistakes. Might as well just pay it and move on.
However, I'd make sure to look at the settlement papers and call the attorney or title company handeling the closing. Insist that they pay for it and then collect it from whoever later. It doesn't hurt to ask.
I hate it when crap happens but such is life. GOOD LUCK
Hello Myfrogger,
I checked my settlement statement last night, and I see where the cost of property taxes were figured into the cost. I also checked my last year's monthly statement from the mortgage company, I see where there is a withdrawal from my escrow account for the property tax.
This leaves on possible solution, the county clerks office has made a $1,900.00 mistake in their favor. I will have to contact the county clerks office so that I enquire what proof they require that my 2002 taxes were paid and paid on time. I just pray this will not be an up hill battle.
I think $1900 plus is worth fighting for. Hard to hire an attorney and fight for that but small claims is great. Find out who did not pay and collect a judgement at least. Title company will pay. I had a shady attorney stiff me once and because of me he lost his license. I am sure he is still doing illegal legal work.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Thanks Tedjr,
I went to the county tax office on yesterday. I was told to get a copy of the front and back of the check that was issued by the escrow company. I phoned the escrow campany today an requested the information.
I just wonder why I did not get anything in writing from the tax office stating I had overdue taxes. The tax if paid, before 1/15/03 was $1,198.08 I would not have known a thing about it until what, someone forclosed for taxes? Now they have added on $680+ in late fees. Something ani't right.
Hmm... sounds a lot like the boat I am in except mine is worse. I purchased a rent property for 47K, 3+ years ago. The tenants who are in the property now want to buy it and I told them 55K. (House worth in low 60s but I am being nice). Just now found out that there was $2600 in STATE tax liens filed 4 years ago against previus owner. The title co did not catch it and now they are out of business! Seller has moved to Florida. I called Realtor that sold me house and luckily he had seller number in Florida. However, seller has not responded to call from current title company (though it has been only 24 hours) and seller probably won't respond. Just a mess. The fees are probably up close to $5000 now so there goes the majority of any profit I planned on making. I can't raise the price by too much because my buyers won't qualify.
Man, there should be laws against this stuff. Why should the state collect from me? And like you say, when was I going to find out? I guess when my property was up for sale!!
Have you talked with your title insurance company about this? First, I'd check with the county, and if it is from a previous era, title insurance should help out.
[addsig]
First of all This is what title insurance is for. Contact your Title Company.
John I would contact your State, original lender on this and/or a lawyer to see what your options are on this matter.
You should not be held liable for these taxes. Find out how you can get these taxes taken care of (with out paying).
Your Lender will find away. They do not want to lose the collateral on this deal let alone there money. The lender can not make you pay those back taxes from before your ownership.
Chfeath,
There are a number of things in life that don't appear to be fair. However, the current owner of the property is responsible for the property taxes. The real head ache about the situation is by the time that you hire a lawyer and still lose the case to the county, what have you gained. I have gotten away from use of the term "fair". When you are up against the system it is best to just get out with as much of your skin in tact, that is just my take on it. If I can not prove that my 2002 were paid, then I am just going to eat that fee and be done with it.