Legal Question in Real Estate Law in California

Refiancing Mortage / Owing back Property taxes

We are going to be refianancing our mortage with a big name lender, Currently we have a private loan. the lender will only loan the balance on the current loan, no chash out. We are current on our property taxes. However we filed chapter 13 6 years ago and it was dismissed last year. During that time property taxes from Fiscal year 2000 went unpaid. Currently the balace is $10,000 dollars. We are going to get on an installment plan with the county, but have not done so. We will be going into escrow soon.

Do you see any problems with this.


Asked on 1/29/03, 3:58 pm

2 Answers from Attorneys
Lyle Johnson Bedi and Johnson Attorneys at Law

Re: Refiancing Mortage / Owing back Property taxes

Yes. The unpaid taxes are lien on the property. Tax liens come before any other lien regardless when it was recorded for that property. The new lender will be 2nd behind the tax lien.

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Answered on 1/30/03, 1:54 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Refiancing Mortage / Owing back Property taxes

I agree with the previous answer, but I think the big-name lender will discover the unpaid property taxes (if they haven't already; hopefully you disclosed all this in your loan application) and either back out or require that the property taxes be paid out of escrow. It's unlikely a big-name lender will take a second position to the tax collector.

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Answered on 1/30/03, 5:22 pm


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