Legal Question in Real Estate Law in Wisconsin
My only house is in foreclosure, and I owe property taxes. If I loose the house will I be responsible to pay the taxes?
1 Answer from Attorneys
Usually not, since in most counties, property taxes are liens against the land only and not a personal obligation of the owner. Instead, the bank will usually pay the property taxes in order to protect their mortgage lien, since property taxes are superior even to mortgages and, if not paid, mortgages can be wiped out in an eventual tax sale. This being said, you should educate yourself about local ordinances which could still create personal liability for the owner, such as various types of building maintenance which effect public safety such as snow removal. another bit of good news is that a chapter 13 bankruptcy will not only stop a foreclosure; it will also stop property tax collection activities such as a tax sale and allow the owner to pay off the arrearage over a five year repayment plan. You therefore owe it to yourself to at least have an initial consultation with a bankruptcy lawyer. My comments here are not legal advice, nor do they create an attorney client relationship between us. However, you are welcome to contact my office to discuss retaining me or to set up a free initial consultation at my office in Racine. I also can sometimes arrange to travel outside of Racine for initial consultations if absolutely necessary.
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