Expert: Dick Dennis - 3/23/2010

Question
I know someone who is a few years behind in taxes. The house was willed to him and he has no mortgage. Can he lose his house and if so what would I do if interested in the property? He would like to sell it but the property is a mess and needs (A LOT) of work. It would almost be better to tear it down and start from scratch.

Answer
If you want to buy the property from him, go right ahead, as long as he does want to sell it and he is satisfied with your purchase price, Kelly. But be prepared to pay the taxes in the course of buying the property. Most likely he is not going to pay them.

If the taxes are not paid, after a legal period of time (unique to your county and state) the county will foreclose on the property and sell it to whoever bids the best price. On every property in this country, the very first lien are the property taxes. It doesn't matter if there is a mortgage on it or not. It is a lien even if they were just paid. When a property is taken for back taxes, all other liens, if any, are wiped out. That's why a lender makes sure that the taxes are kept current.

When a mortgage is obtained, the lender will always check to see if the taxes are current BEFORE they lend a dime. So, if you have intentions of borrowing on the property you had better pay it because the lender is going to pay the tax bill with the first dollars from your loan. I do wish you well.

Dick Dennis
CA Broker lic. #00349415
dixiedee13@aol.com