What happens if I'm behind in paying property taxes?

Question

I live in San Diego CA. & own a triplex. Each unit is non-owner occupied. I have a neg. amortization loan & can barely make the mortgage payment with the rent I receive each month. I can only afford to pay the negative payment. The value of the triplex is $100,000 less than what I can sell it for. I haven't been able to pay the property taxes since 2006.

If the county auctions my triplex what happens with the bank? Do they get their cut from the auction or will they come after me to pay off the home?

Answer 1

5 years after you make your last tax payment, your property can be taken over by a stranger who pays the money to the county.  They have to go to court to do it.  7 years after , they can skip the court and just ask for the deed to your house.  They must pay all 7 years of tax first.  

If you didn't pay for the 2005 tax year, they can go to court in Nov, 2010.

Answer 2

The county can auction your property at tax sale, then you have rights to redeem by paying interest to bidder

Your lender has right to pay the taxes and add it to what they owe

NEVER ever take a negative amortization loan

You have overextended yourself and need to check out all your options

A frank discussion with your lender is first thing to do

Answer 3

Call the county assessors office and ask them to re-assess your property.  It sounds like it's gone down in value from when you purchased it?????  May not take care of all your problems, but a few bucks is a few bucks.

The peeps before me have answered your original question, just another idea for you.

Answer 4

Agree with the first poster. Have an open discussion with your mortgage banker and figure out if there's a way that the mortgage can be modified.

What's the cap rate that you are getting in your triplex property?

Is there a possibility that you can do some minor improvements and raise the rent a bit, to cover bridge some of the shortfall?

Answer 5

The county is auctioning the debt, not your property.

The buyer will put a lien on the property and start trying to collect.  They will be much more aggressive then the county.

Your bank may foreclose on you once they hear about this.   I am SURE that the documents you signed stated you would be paying the taxes.

After they foreclose they will indeed come after you for any additional funds you owe them.    This is an investment property, not a home, you have no legal protections, you spent the money you need to repay the money.

Answer 6

When you go through Foreclosure, the bank that has your mortgage will have to pay off any outstanding taxes or liens on the property before they can put it up for sale.  You should call the mortgage company's loss mitigation or homeowner's assistance department to see if there's any options for you.