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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Why does Bank pay property taxes Posted by Bill H on January 12, 2010 at 6:34 PM In Reply to: Re: Why does Bank pay property taxes posted by Brian Rodgers on January 12, 2010 at 4:49 PM : : : I'm following a TS property from Last year to this year. The property has been vacant for 7 mos, I just checked the taxes, and they are now paid. Bank must have paid them, WHY? : : : DC : : Simple answer. Property taxes are the most superior lien against a property. The mortgagee will be wiped from title by the tax lien if it MATURES,..NOT..if it merely goes to a lien sale...ONLY if it matures to the tax lien buyer. The bank does not want this to happen so they pay the taxes. : : Good Luck, : : Bill H : : Bill, Is this the case for California properties? I was told by title that the most CA counties do very little to collect until after several years. Brian: They do not have to do very much. No state that I know of will send the bill collection agency to get you for property taxes. They all know that sooner or later it will escheat (Default) to them for the unpaid taxes and they can sell the lien/deed and get their $$$ plus the back interest. CA is a tax deed state and will do nothing until 5 years have passed and it then belongs to them. Every state is a little bit different from the others. All will send you the bill for the taxes. Whether or not you pay it is up to you. Have not checked in some time but If I remember correctly, GA has in it's statutes that LACK of receipt of a tax bill IS NOT and excuse. Their statute says it is INCUMBENT upon the taxpayer to know it is due and PAY it when due. BUT...all have the upper hand as property taxes are superior. Good Luck, Bill H Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : I'm following a TS property from Last year to this year. The property has been vacant for 7 mos, I just checked the taxes, and they are now paid. Bank must have paid them, WHY? : : : : DC : : : Simple answer. Property taxes are the most superior lien against a property. The mortgagee will be wiped from title by the tax lien if it MATURES,..NOT..if it merely goes to a lien sale...ONLY if it matures to the tax lien buyer. The bank does not want this to happen so they pay the taxes. : : : Good Luck, : : : Bill H : : : : Bill, Is this the case for California properties? I was told by title that the most CA counties do very little to collect until after several years. : Brian: : They do not have to do very much. No state that I know of will send the bill collection agency to get you for property taxes. They all know that sooner or later it will escheat (Default) to them for the unpaid taxes and they can sell the lien/deed and get their $$$ plus the back interest. CA is a tax deed state and will do nothing until 5 years have passed and it then belongs to them. Every state is a little bit different from the others. All will send you the bill for the taxes. Whether or not you pay it is up to you. Have not checked in some time but If I remember correctly, GA has in it's statutes that LACK of receipt of a tax bill IS NOT and excuse. Their statute says it is INCUMBENT upon the taxpayer to know it is due and PAY it when due. BUT...all have the upper hand as property taxes are superior. : Good Luck, : Bill H [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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