Profile picture for Whargarrble

Back Taxes on a Fannie Mae?

There is a piece of property that I really want in my area, and it is a Fannie Mae foreclosure. From what I have been able to see, the house went into foreclosure a year ago, so I am worried about things like back taxes or liens being on the house, that I will wind up being liable for if I do decide to buy.

My questions are: Does Fannie Mae pay off these things when they take the property? If they DO NOT are they required by law to disclose them before selling?
  • December 09 2013 - Town of Hillsborough
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Answers (7)

In NH it depends how it is being sold. Those homes taken in Foreclosure and are put on the market through a local listing agent will not have back taxes or liens that the buyer is responsible for. Any liens are paid at your closing by the seller. If you purchase via an AUCTION, most auctions have the buyer responsible for all taxes, HOA or liens. They do not have to disclose anything at an auction and it is buyer beware. A good buyer agent can help you purchase a Fannie property or any REO home. 
  • December 30 2013
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Profile picture for Whargarrble
Thanks a lot guys, I feel a bit better now. ;)
  • December 27 2013
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Profile picture for Tyler Tapley
Typically the bank will pay any back taxes and leins on the property before you buy them.  Your closing attorney will review these items before the closing...you also should get title insurance which would step in and pay those items if the attorney missed them.
Thanks!
  • December 24 2013
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Majority of the time, if Fannie Mae will pay back taxes so the consumer/purchaser/buyer can obtain clear title. If financing is involved with the purchase, that lender will require that those back taxes are paid to obtain a clear title, thus purchaser's lender will fund the transaction.
  Side note if normal transaction via homepath, Not an auction property. Fannie does offer title insurance if you use Fannie Mae closer. Hope this helps
  • December 21 2013
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Profile picture for JimVT
With foreclosures, it depends on how Fannie Mae or any other company is selling the property.

If it is being sold via an auction there is a lower threshold for the quality of the transfer. You have to be diligent to make sure there are no liens outstanding on the property.

If you use the standard Purchase and Sale agreement for the sale, then there is a contingency that the property be transferred free of liens. Fannie Mae also has a required addendum that you should read. They generally make sure that the title is clear of liens, but with the rise of auctions and other changes in the last year or so, better safe than sorry.

The best thing to do would be to hire an attorney to conduct your title search and check for liens/permit issues. They are the specialists and can give you the best advice if something were to come up.

Good luck!
  • December 10 2013
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Profile picture for BryanFix
They will be paid by Fannie Mae at the time of Closing
  • December 09 2013
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If you write an offer on the property and it gets accepted, escrow will be opened and escrow will pull all liens on the property. You will find out then what the back taxes are and everything will need to be brought current by the seller in order to close, unless a different arrangement is made. If something is missed by escrow, that is why you get title insurance to protect you against liability from something that happened prior to your ownership of the home.
  • December 09 2013
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