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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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are back taxes owed if the town (in CT) either condems or forcloses

Resolved Question:

are back taxes owed if the town (in CT) either condems or forcloses on commercial property
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

Hello willie,

 

Yes, property taxes are still due regardless of whether or not a property is condemned or foreclosed. Generally if the taxes are not paid by the owner, the county will place a lien on the property which must then be paid either by the lending institution that initiated the foreclosure or by the new owner if the home goes into a foreclosure sale.

 

While the county will still continue its collection attempts against the owner, generally the debt will attach to the property if the owner has not paid the back taxes that are due, and the lien will not be released until the taxes are paid.

 

 

Thank you.

 

Customer: replied 8 years ago.

what happens after the town takes posession of the property

 

Customer: replied 8 years ago.

what happens after towns forgloses on property. is there any way to get out of the taxes if you cann't pay them?

 

Customer: replied 8 years ago.
what happens after the town forcloses on the property? Are the taxes still due? and is the any way of getting relief if you have no way of paying them?
Expert:  Merlo replied 8 years ago.

Hello again willie,

 

No, unfortunately the tax debt will not just be forgiven. But as I said in my first post, generally a property tax debt will follow the property itself more so that the owner. So if you cannot pay the taxes, the county will likely place a lien on the property once it goes into foreclosure. When that happens, then when the home goes into a foreclosure sale, the tax debt will be paid by either the bank or the new buyer of the property as part of the purchase. At that point in time, you would be relieved of the debt.

 

 

Thank you.

 

Customer: replied 8 years ago.
what happens if there is not enough equity left to pay off the balance or if the property is comdemmed. this is commercial property.
Expert:  Merlo replied 8 years ago.

Hello again willie,

 

If there is not enough equity to pay off the loan balance then the property will go into foreclosure either way, regardless of whether or not the property is condemned. If the current property owner has not paid some of the taxes then a lien will be placed on the property.

 

Even if the property is condemned you have to know that at some point in time it will be sold, even if the new buyer is strictly going to bulldoze the building and build something new in its place. Condemning the building does still not take away the value of the land. At the time of the sale, the lien will have to be paid by either the bank or the new owner if the taxes are still outstanding at that point in time.

 

If this has been helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you.

 

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