While buying a foreclosed home, Who Pays the Taxes, Utilities etc?
While buying a foreclosed home, Who Pays the Taxes, Utilities etc?
All of this is settled at the closing.
They most likely will do the right thing, but make sure you look over all the paperwork to see what you are paying for, GL
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April 22nd, 2010 at 11:45 am
Are you asking while you are in the process of buying the home and you have not signed the papers yet? If the house is vacant then I would say the utilities have been shut off. As for the taxes, I would imagine that the foreclosed owner did not pay the taxes and therefore a lien would be place on the property and the person who buys that property would now have a lien placed onto the property. That would mean you are now responsible for the unpaid taxes. Why would you want to buy a foreclosed home anyway? With all the illegal foreclosures going on, one day there will be class action lawsuits coming and the house you buy may be one that is included.
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April 22nd, 2010 at 11:52 am
The answer depends on your contract.
Most standard state issued contracts call for the property taxes to be prorated- that is that the current owner (bank) to pay an amount of money equal to the estimated property taxes for the part of the year they have owned the home and the buyer to pay for the part of the year they will own the home.
If the taxes are not currently due and payable then the bank gives their prorated part to the buyer and the buyer pays the entire tax bill when it is billed.
If you have an escrow account then that prorated amount often goes into the escrow account at closing.
You would sit up a new utility account at closing time and not be responsible for previous utilities.
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April 22nd, 2010 at 12:35 pm
All of this is settled at the closing.
They most likely will do the right thing, but make sure you look over all the paperwork to see what you are paying for, GL
References :
April 22nd, 2010 at 12:52 pm
I agree with MKD, make sure you check if there is a lien on the property. We had one sneak up on us at our first house….very difficult to fight.
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