QUESTION
If property tax is not paid what can I do to best protect my interest?
Asked on Nov 24th, 2012 on Foreclosures - California
More details to this question:
I sold my house located in Turlock, Stanislaus County, California back in 2003 for $600,000. Seller financed. Not via a bank. Now I just discovered that the buyer did not pay property tax since the purchase. The amount he owes has accumulated to be $46,000. The county has put the house on tax auction, which will take place Feb, 2013. The buyer still owes me around $300,000. Thanks a lot!
1 ANSWER
1 Award
To protect your position, you would need to advance the $46,000 to the county to stop the tax sale, then add that amount to what the borrower owes you. Next, you would commence nonjudicial foreclosure on the deed of trust which secures your position. If the borrower cures the amount due, then no foreclosure occurs; if he doesn't, the foreclosure sale proceeds and you get the property back-unless someone else bids enough at the sale to satisfy what you are owed. If you fail to cure the tax default, and the tax sale occurs, your security interest will be wiped out, and you will have no remedy against the borrower.
Answered on Nov 27th, 2012 at 4:57 PM