Property Tax Question

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IrvineCitizen_IHB

New member
Sorry for my first post being an ignorant one.



What does it mean when somebody pays their first installment of this year's property taxes but not the previous year's delinquent taxes?



There are several homes in my Irvine neighborhood that have either 6 months or one year in delinquent taxes but they paid the first installment (due Dec 2008) of this year's taxes. I don't understand why somebody would do this? You incur more interest and penalties on the older debt so why not pay it off first?



Are these houses in pre-foreclosure and are the banks paying the property taxes?



Sorry if this doesn't make sense or you haven't seen this before. I'm not a realtor (obviously!) but am curious.



Thanks for the forums! This site seemed to be missing for a couple months but maybe I messed that up too!
 
Maybe it just means that no one really knows. I'm sort of curious about the answer too. But the site never disappeared.
 
[quote author="asianinvasian" date=1234943295]This year and previous year are different owners.</blockquote>


Ooooooooooohhhhhhhhhh.......I like this....interesting.



So it could be foreclosures in waiting. I see at least ten homes in my neighborhood of 450 homes with this status. So if the banks have them now they could be squatting until kicked out. Months. Years even in this climate. Some of the houses with this status are owned by people with previous foreclosures.



Maybe the owners transferred ownership between spouses. Quitclaim deeds. Declaration of Homestead.



Thanks for the food for thought!
 
[quote author="asianinvasian" date=1234943295]This year and previous year are different owners.</blockquote>
When property is transferred don't they catch up on all the property tax prior to?
 
[quote author="halfnote19" date=1234946615][quote author="asianinvasian" date=1234943295]This year and previous year are different owners.</blockquote>
When property is transferred don't they catch up on all the property tax prior to?</blockquote>


No.
 
Actually, I believe that is not correct. In order to close escrow on a home all taxes, must be current and paid at closing if not. <a href="http://books.google.com/books?id=0Ob1MwwJnOUC&pg=PA54&lpg=PA54&dq;#PPA57,M1">Scroll down the bottom of page 57</a>, and replace attorney with escrow agent since CA is not a table funding state.
 
[quote author="graphrix" date=1234948981]Actually, I believe that is not correct. In order to close escrow on a home all taxes, must be current and paid at closing if not. <a href="http://books.google.com/books?id=0Ob1MwwJnOUC&pg=PA54&lpg=PA54&dq;#PPA57,M1">Scroll down the bottom of page 57</a>, and replace attorney with escrow agent since CA is not a table funding state.</blockquote>




I didn't answer, as I'm neither a lawyer nor escrow agent, but this is my understanding also. You have to clear the title of all encumbrances prior to transfer through an escrow agent and title company (i.e. a "normal" sale).



of course, I think it is also possible to transfer a property without title insurance and "inherit" liens. Isn't this what happens when you buy a FC from a bank at the courthouse steps? Aren't you then liable for all the liens?
 
[quote author="freedomCM" date=1234956832][quote author="graphrix" date=1234948981]Actually, I believe that is not correct. In order to close escrow on a home all taxes, must be current and paid at closing if not. <a href="http://books.google.com/books?id=0Ob1MwwJnOUC&pg=PA54&lpg=PA54&dq;#PPA57,M1">Scroll down the bottom of page 57</a>, and replace attorney with escrow agent since CA is not a table funding state.</blockquote>




I didn't answer, as I'm neither a lawyer nor escrow agent, but this is my understanding also. You have to clear the title of all encumbrances prior to transfer through an escrow agent and title company (i.e. a "normal" sale).



of course, I think it is also possible to transfer a property without title insurance and "inherit" liens. Isn't this what happens when you buy a FC from a bank at the courthouse steps? Aren't you then liable for all the liens?</blockquote>


Yes the bank is liable and pays the taxes and liens etc when the home closes. You would not be able to get Title insurance nor would a mortgage lender allow the loan to fund unless all these issues are taken care of by the bank or property owner. Escrow is a neutral 3rd party that makes sure everything is in order by all parties before escrow can close. Now ask me on supplemental property taxes.
 
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