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N0help4u
Aug 3, 2010, 11:34 AM
A guy said I could have this house that needs a lot of work. I went to check it out. The city, county and school taxes all come to almost $11,000. The city and county said they can't lower them. I didn't ask the school. Anyway the guy that said I could have it said he didn't realize the taxes had gotten that high. 2005-2009. It was up for one tax sale last Dec. and nobody bought it. They told me the starting bid I think $300. Or $3,000. Anyway I was thinking wait for the sale, but some people are telling me I'd still be responsible for the back taxes. Others are saying no they will be just getting what they can from the judicial tax sale and I won't be responsible for the taxes. I really want to know because I don't want to have my hopes up. The tax places are even telling me various things that don't add up like they really don't know or they don't want to disclose the way it works. If anybody knows for sure I'd appreciate it. I don't want to pay what I bid for it only to find out I still have to pay the $$$$taxes, if that's the case I'd be better off just to transfer the title and skip the sale. Not really worth it at $$$10,000+ though since it needs a good bit of work.

Thanks
Linda

AK lawyer
Aug 3, 2010, 11:47 AM
... some people are telling me I'd still be responsible for the back taxes. ... The tax places are even telling me various things that don't add up like they really don't know or they don't want to disclose the way it works. ...

If you buy the property at a tax sale, the amount you pay satisfies the first tax year that was delinquent. Say, for example, the owner didn't pay taxes for '06, '07, '08, '09, and this year, '10. The property is being sold for the '06 taxes. The question is whether the '07 through '10 taxes continued to accrue.

Chances are the city (When I say "city" this is shorthand for city, county and school district.) foreclosed some time in between. Say '08 (to use my hypothetical example). The city owned the property beginning in '08. So taxes for '08-'10 wouldn't accrue (it was owned by the city, making it tax exempt.) So the property would have been subject to the '07 and '08 taxes.

Does all of this make sense? What you need to do is research the tax laws in your jurisdiction to confirm that it works like I am suggesting. You might wish to consult with a local attorney to be sure.

ScottGem
Aug 3, 2010, 11:53 AM
As with anything law related, your general area is important as laws vary.

Generally it does go as AK suggests. The auction is based on the earliest delinquency only. But the place to ask for sure is the office of your local receiver of taxes. They are the ones that usually conduct these sales and can tell you what goes.

N0help4u
Aug 3, 2010, 12:11 PM
The title is still in the owners name so would it still be considered city owned at some point? I know the city tried to sell it last Dec.

N0help4u
Aug 3, 2010, 12:12 PM
The place that collects the taxes says they will only talk to the owner

ScottGem
Aug 3, 2010, 12:37 PM
Of course they will. So don't ask about that specific property. Ask a general question about tax sales.