Posted by John Merchant on February 08, 2010 at 17:36:06:
Anybody personally signing a note, then letting that note become delinquent and its property foreclosed is absolutely going to take a negative hit if the foreclosure is reported to credit bureaus.
But different rule sometimes played in tax sales of RE.
Sometime back I learn that one/some of the rural counties in TX did not report or record its tax judgments so those didn’t affect the delinquent tax non-payers as they are not reported to or picked up by credit agencies.
I had a hard time believing this but following up on the report for a client, I did talk to the lawyer taking the judgment for the county and he confirmed it.
He said the only reason they took judgments in those cases was so they could clear the title and auction the land at tax sales so as to get the RE back on the tax rolls.
If I were you I’d give the lawyer representing the tax office there a call and see if they report those tax repo/foreclosures to anybody.