Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for copesee

Refinance issues, tax sale question

Mtg balance 263,148.00, rate is 6.50 %, highest credit score 691, current cc debt under 2000.00, current on mtg payments but school and re taxes not included in mtg pmts and owe close to $39000.00 for school and RE taxes going back to 2003 and house is up for tax sale Sept 21, 2011. Tried to refinance without success. Does anyone know the rules for tax sales labeled as repository. In a nutshell tried to find info under state statues without success. I'm assuming my property cannot be purchased without paying off the tax liens as well as the existing mortgage balance. My mtg company is HFC/Beneficial and the absolute worst so notifying them for assistance is my next to last option as I reams of  paperwork,documents,tapes of phone conversations with CSR's trying to get help due to a lay off back in 2003 in which they refused to help forcing me into bankruptcy to save my home as cc debt wasn't the problem rather the dramatic loss of income was. Mtg company does not participate in any of the programs to modify mortgages.If I can't refinance, get help from my mortgage company the last option is another chpt 13 to buy more time. Any help or direction to find info would be greatly appreciated.
  • September 07 2011 - Redford
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (2)

I'm not sure I'm completely following... .  But generally, once your taxes are purchased, they can own your house by paying the tax debt yes.  They don't want to own your house.   They just want the easy "juice" they get to charge you for buying your taxes.  But, no, they don't have to buy your mortgage AND the taxes, just the taxes.  And the tax liens take priority over the mortgage.  In other words if you sold the house, the person that owns your taxes gets paid every cent of the taxes plus their mark up before dollar 1 goes to the lender or you.   And yes, they can evict you and sell your house just by owning your taxes.   Anything left over after they and the lender gets paid goes to you.  But, the house gets sold at auction--not exactly the way to maximize the sale price. 

If you owe 392 and they're owe 50k for the taxes and the house sells for $250,000 at auction...they get their 50k first, the lender gets 200k (and loses $192,000).

That's why generally we'll give you a better deal to escrow your taxes.  Then we know they're paid and this kind of thing can't happen.

Good luck... hope it helps.   Feel free to get in contact with me for any other questions.  Always glad to help if I can.  I won't see a reply here (I reply to too many posts to subscribe to them all).
  • September 09 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Where are you located?  You can look through the Zillow professional tab and search for a tax consultant.  When your in the professional tab you can search by city, state, and zip code.
  • September 09 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.