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Two questions: Do banks pay property taxes and do any still do reverse mortgage?
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2012 Jan 26, 1:05am 2,192 views 3 comments
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TechGromit
2012 Jan 26, 1:27am
Yes, banks make sure the property taxes are paid on a house that is in foreclosure. Last thing they want is for the township/city to seize the property and sell it at sheriff sale for unpaid taxes. Now far as I know they do not pay homeowners fees however.
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2012 Jan 26, 1:46am
BAC got out of the RM biz first and WFC followed in June of last year.
RMs are guaranteed by FHA so there's no direct risk to the banks, but given the demonization banks are experiencing they don't want the political liability of being responsible to the gov't for "bailout" of their RM, and also the negative publicity of throwing heirs out of homes that have been asset-stripped via their parents' RM.
Yes, banks make sure the property taxes are paid on a house that is in foreclosure. Last thing they want is for the township/city to seize the property and sell it at sheriff sale for unpaid taxes. Now far as I know they do not pay homeowners fees however.
They DO pay HOA fees if they want to sell the home, at least in CA. The association puts a lien on the property and the total amount (starting the clock when the bank takes back possession), with late fees, etc., is paid to the assocation out of escrow at closing.
When banks take these homes in foreclosure are they paying property taxes to the town/cities?
Now they can't exactly say they are non profit and thereby exempt from paying this but what would the excuse be?
Which banks today would be doing reverse mortgages given the market?
#housing