Expert: liznarr - 6/14/2007

Question
Hi i have a question in matter of importance,when a property is bought with back taxes and their is money is in involved in the transaction, does that mean that they are covering their cost by later applying a fund to cover what they had lost? because that is what happened.

Answer
Terry,

I am not going to be much help to you now, because I am not sure exactly “what” you are asking... and I am not familiar with any “fund” as it relates to a tax sale that will cover what a homeowner lost in a transaction.

In the event of default on a mortgage by a homeowner on an FHA insured or VA guaranteed loan (and also some Conventional loans carrying Private Mortgage Insurance), a LENDER is reimbursed whatever the insured or guaranteed limit is (and also depending on the mortgage balance); but I do not have any knowledge of funds that cover losses for back-tax purchases.

If you care to clarify your question, I will be glad to try and answer.

Regards,
Elizabeth