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Loading ...If I owner finance a home to someone and they do not pay the prop taxes what will happen? Will my land be sold
I have financed a home for a couple (in Florida) and the arrangement was they were responsible for the taxes on that land every year. This year they decided not to pay the taxes, and have put the house up for sale, I was told it was being put on sale for a property tax sale also, how do I get what I have financed for them? Will the house be sold for the 0 in taxes alone or can I put a lean on the property for the amount I have financed for them? I just want to make sure I get the money that I am owed for financing the land for them, and I am not stuck with a house loan and no house to sell or rent out?
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Tags: 6 Responses to “If I owner finance a home to someone and they do not pay the prop taxes what will happen? Will my land be sold”
This is sort of confusing, owner financing does not include a bank. You should have put a lien on the house as soon as you sold it, it is done on closing day.
I can not fathum a bank loaning you money on a home you do not own, you might want to call them and find out if they already placed a lien.
Do not worry about the tax sale, it is not a sale of the property, only the tax debt.
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1st I would contact the county that the property is located in to see if the property taxes are in my name and if I can make arrangements to pay the property taxes whether or not they are in my name. I would,also, contact an attorney to safeguard my rights. I do not know if the attorney would have to fill a lien or what. I do not believe that you can make the people pay what is still oweing on the property, however, with the help of an attorney you can p robably get your property taken off a tax sales
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What type of documents do you have that you have placed a lien on the property. You indicated you owner financed the house.
Did you go to escrow and place their name on the deed and the title company closed with a lien in your favor with monthly mortgage payments to include interest, and the number of years you financed the property?
It sounds as if all you did was a handshake with a promise. You did not indicate any paperwork that was signed by you or the borrowers.
Now if they did not pay the property taxes it would not appear as if the county would place the poperty up for sale so soon. If the county is selling the property for back taxes they would send a notice to the owners of the land with a date they can bring the back taxes current to include a date the property would be sold.
Now there are some states in which they allow back taxes to be purchased by individuals. Check and see if Florida is one of those states. If it is find out what you have to do to purchase the back taxes and bring them current.
If they have the property up for sale do they have a deed to the property with their name on the deed. That is the only way they can sell the property is with a clean deed that is recorded at the county court recorders office.
You should call and find out the reason for the sale as well as the cost of the land.
There are so many things not explained by you about how they purchased the land, what and who they pay on the land, have they been making monhtly payments to you on the land.
You may always place a lien against the property, but you must have a means of proving your lien, like a promissory note or land contract.
I hope this has been of some use to you, good luck.
"FIGHT ON"
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You should pay the property taxes and start a foreclosure NOW before the tax sale.
DO NOT DELAY.
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The big question is whether you actually have a mortgage filed with the county, which would place a lien on the property. If so, you should pay off the taxes and foreclosure on the property – you will need an attorney to do the latter.
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as am going to assume you used a title company or attorney to prepare the documents. Your chances at recovering are going to depend on if the documents were prepared,executed and recorded properly.
You will also want to check if they used the property as collateral on any loans since your mortgage was never recorded.
Your last part is a little confusing that you are stuck with a house loan, do you mean you sold a property that had a bank mortgage to you under owner financing ? If so.. get a lawyer yesterday because you have other problems also.
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