Re: Who Pays Back Taxes for Property Bought After Foreclosure
you will be purchasing the property with a tax lien in place and the amount of time to pay the taxes depends on the state it is in and how long the state allows taxes to be delinquent.
the taxes are against the property, not the owner.
the down payment is going to be your money. Most any bank is going to require some cash from you and 10% may be far less than what they require for a conventional mortgage.
3. The terms of the sale are 10% down on the day of sale, and the balance in 30 days. I havent talked with my bank yet, but is it a generally accepted practice that they will preapprove me for the loan, and give me money to put the 10%, or do I have to use my own money for that?
that is between you and the bank. This is the hard part about trying to use a mortgage to purchase a sheriff sale house. A bank is not going to loan money on a house without an appraisal. That doesn't happen overnight. They may also have other contingencies such as inspections of some sort.
Also, if the house appraises for 300k, and I buy it for 200k, it is generally accepted that I can get a mortgage for 220k and essentially have the back taxes rolled into the mortgage?
You would be best served by speaking with a banker before you get very far. It isn't as easy as it sounds.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.