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Roger, Attorney
Category: Bankruptcy Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I signed the Deed in Lieu about two months ago. The letter

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I signed the Deed in Lieu about two months ago. The letter of Estoppel was delayed by the HOA Managment company. I continue to pay the HOA and utility bills each month. Now I am in receipt of the county's 2012 property tax bill due in January 2013. Am I legally responsible to pay it or will the bank pay it when the DIL is officially signed by both parties?

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney.

Property taxes are not your personal liability. Instead, the real estate stands as collateral for the taxes, and whoever doesn't want the real estate to be sold for taxes will pay the obligation. In other words, if you don't pay the taxes, the county is not going to sue you for the debt. Instead, the county will sell the property for the taxes due.

Obviously, the property owner usually pays the taxes to keep from losing the property. However, if you're giving the home up through a deed in lieu of foreclosure, then there's no obligation for you to pay the property taxes UNLESS the lender makes this a condition of it accepting the property back.

If the lender doesn't demand that you pay the taxes, then the lender will be responsible for the taxes when they come due next year.

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