Ontario Tax Sale Property Forum
Tax Sale Forum => Questions and Answers => Topic started by: jchilcot on September 21, 2006, 10:02:57 PM
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I purchased a property at a local tax sale recently. I did my research but somehow I missed a 7000 mortgage on it. The mortgage company said they would probably foreclose on it to get there money. Would that be a forclosure on me or on the previous owner? And another person I talked to from the mortgage company said they will redeem the taxes before the property is transfered to protect their intrests. Any one have any experience with this? The state is Pa.
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Don't know anything about how the rules read in Pa. However, I'm sure that they are similar. In Ontario, the courts have ruled that until the vesting deed has been registered in your name - the owner can still redeem the property by paying the taxes. A third party such as a mortgagee can pay the taxes as well as they have an interest in the property. No doubt the terms of the mortgage state that if they ever have to come to the rescue, then they have the right to foreclose.
Good luck.
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What type of search did you perform on this property? You mentioned it was sold at a local sale tax. Was there a lien placed on the property in order to recover taxes or for other reasons?
They have the power to place a lien on this property of $7,000. If the deed has been issued to you and the mortgage still remains on the property you would need to pay the that amount or it could go through the forecloser process (again). If this is the case I would search to see if there is still a lien on the property my guess is it is gone.
"will redeem the taxes before the property is transfered to protect their intrests". Yes and that amount will be removed from the money the previous owner is paid for the property. Normally this amount and the mortgage is removed before a deed is issued to you. I don't have much experience in PA, but that is the process followed in most states and provinces.
If you are forced to pay the amount, what you can do is recover the money from the previous owner.
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Here is some information on the tax lien process. (For everyone interested). It's slightly different than other areas.
The tax lien process:
The various taxing bureaus with the Department of Revenue send billing notices, delinquent statements, assessment notices, and for business taxes, a pre-lien notice to the taxpayer before a lien is filed. These notices inform the taxpayer of the Department’s policy regarding the debt. Taxpayers are allowed a period of time to appeal before a lien is requested. The appeal time frame for Sales & Use Tax is 30 days, Employer Withholding Tax is 90 days, and Personal Income Tax is 90 days.
The lien is sent to the county courthouse where the taxpayer resides or does business. The lien is filed with the Prothonotary’s Office, given a docket number and then sent back to the Department’s Lien Section for coding. The tax lien will remain active until the debt has been paid and a satisfaction notice has been issued to the taxpayer for filing at the Prothonotary’s Office.
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Here is some information on the tax lien process. (For everyone interested). It's slightly different than other areas.
The tax lien process:
The various taxing bureaus with the Department of Revenue send billing notices, delinquent statements, assessment notices, and for business taxes, a pre-lien notice to the taxpayer before a lien is filed. These notices inform the taxpayer of the Department’s policy regarding the debt. Taxpayers are allowed a period of time to appeal before a lien is requested. The appeal time frame for Sales & Use Tax is 30 days, Employer Withholding Tax is 90 days, and Personal Income Tax is 90 days.
The lien is sent to the county courthouse where the taxpayer resides or does business. The lien is filed with the Prothonotary’s Office, given a docket number and then sent back to the Department’s Lien Section for coding. The tax lien will remain active until the debt has been paid and a satisfaction notice has been issued to the taxpayer for filing at the Prothonotary’s Office.
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GREAT INFO
Please keep it comming !!!!!!!!!!!!!!!!!!
regards
Dave
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I went over to the court house again today. When I do a deed search it shows a mortgage of $7500. But when I do a search for leins against the property there is nothing against it. How is that possible?