Posted by Mike W on November 17, 2004 at 19:35:09:
Lease purchase agreement? Do you mean you MUST purchase the property? If so, the delinquent taxes can be pro-rated and taken out of the proceeds the seller gets at closing. Unless your contract stated otherwise, the responsibility of property taxes goes with the owner of record.
11 months out of how many? I don’t know if this matters. I just threw it in there.
Does your security instrument/Performance Mortgage give you permission to advance funds on behalf of the lender to pay for things such as taxes, insurance or maintainance?
If so, you can pay the taxes and add the balance onto the Mortgage.
Delinquent Taxes on 11th Month Lease-Purchase - Posted by Ron M.
Posted by Ron M. on November 17, 2004 at 18:51:40:
I currently have a lease-purchase contract, into my 11th month. I used a Memorandum of Agreement, Promissory Note and a Performance Mortgage to cloud the title. However, the seller is delinquent on the taxes. They haven’t been paid. Should I foreclosure?
Re: Delinquent Taxes on 11th Month Lease-Purchase - Posted by JohnBoy
Posted by JohnBoy on November 17, 2004 at 22:30:14:
Why would you want to foreclose? If you foreclose you would still need to pay the taxes to protect your interest. Foreclosing doesn’t wipe out the taxes owed. This would only add more time and expense on your part.
If you want the property just exercise your option and buy the property. Any taxes owed would come out of any proceeds the seller would get at closing. If the seller has nothing coming where your option price is the balance of the seller’s mortgage then you would need to pay the taxes and pursue getting that money back from the seller.
When is your option up? What is your option price? What does the seller owe on the property? What is the property worth?