Advice for renting your home while in foreclosure

[needhelpinnj]

Thanks HHM for the clarification!

[debee]

Any property tax that becomes due AFTER the filing of BK, is the responsibility of the present owner of the property. So, the taxing authority CAN harass you to pay property tax. However, as a practical matter, the remedy for unpaid property tax in most states is a lien on the underlying property. When the property eventually forecloses, the foreclosing bank must satisfy the property tax (so that way the bank can pass clear title). So, net result, you needn't pay the property tax but you WILL be harassed for the collection of any property tax that comes due AFTER your bankruptcy filing date. And if your state allows personal judgments for unpaid property tax, they can go after you.

Don't let HHM Bogeyman scare you. The property tax is the responsibility of the owner BEFORE bk too. The county liens are automatic. Most also have specific time-frames in which unpaid taxes can remain on record before they'll have a party known as an auction. The only time I have ever heard of a county pursuing a homeowner for unpaid property tax is when the property was of so little value that they couldn't sell the unpaid tax lien/deed to an investor.

[helpmeout]

Helpmeout - You haven't been paying the property taxes? My lawyer told me that I would have to. How are you not paying them?

My bank is. And if I received a bill, I would ignore it. My lawyer told me the only thing that I had to pay was the homeowner's insurance and utilities. Property taxes attach to the property, not the owner.

[helpmeout]

Let's back up and clarify the property tax issue...as there are two issues here, one related to BK, and one related to Foreclosure.

Any property tax that becomes due AFTER the filing of BK, is the responsibility of the present owner of the property. So, the taxing authority CAN harass you to pay property tax. However, as a practical matter, the remedy for unpaid property tax in most states is a lien on the underlying property. When the property eventually forecloses, the foreclosing bank must satisfy the property tax (so that way the bank can pass clear title). So, net result, you needn't pay the property tax but you WILL be harassed for the collection of any property tax that comes due AFTER your bankruptcy filing date. And if your state allows personal judgments for unpaid property tax, they can go after you.

Not in NJ and since the OP lives in NJ....... The taxes attach to the PROPERTY not the owner.