Tax Foreclosure and Lien

[BinMVWA]

This is a tax question for Washington State.
As part of my divorce, I was "awarded" a $30k lien on the family home that becomes payable "when the child reaches the age of majority, or the property is sold or refinanced, whichever occurs first". My child just turned 12.
My ex has not paid any property taxes. In fact, they have not been paid since the last time I paid them in 2005. The property is now in foreclosure for non-payment of property taxes. She owes a significant amount (over $8k), which is due in it's entirety now, and it is questionable - at best - if she will be able to come up with that sum.
If she does not come up with the money and the house is sold at auction (planned for November 20, 2009), am I going to be able to collect the principal and interest (I was awarded 6%)? Or will that all simply disappear?
If I CAN collect it, what do I need to do? Is there anything I should be doing NOW to protect my interests (short of paying her taxes for her)?

[seniorjudge]

Before we start discussing this, let me ask you if you are going to bid at the auction.

[Antigone]

Before we start discussing this, let me ask you if you are going to bid at the auction.

Why you asking SJ...are you thinking of bidding???

love ya...

[BinMVWA]

No. I'm not going to bid on it. I cant afford to!

[llworking]

This is a tax question for Washington State.
As part of my divorce, I was "awarded" a $30k lien on the family home that becomes payable "when the child reaches the age of majority, or the property is sold or refinanced, whichever occurs first". My child just turned 12.
My ex has not paid any property taxes. In fact, they have not been paid since the last time I paid them in 2005. The property is now in foreclosure for non-payment of property taxes. She owes a significant amount (over $8k), which is due in it's entirety now, and it is questionable - at best - if she will be able to come up with that sum.
If she does not come up with the money and the house is sold at auction (planned for November 20, 2009), am I going to be able to collect the principal and interest (I was awarded 6%)? Or will that all simply disappear?
If I CAN collect it, what do I need to do? Is there anything I should be doing NOW to protect my interests (short of paying her taxes for her)?

If I was going to potentially lose 30k in equity I would sure as heck find a way to pay the 8k in taxes...and then worry about getting a judgement against her for the 8k after the fact.

[BinMVWA]

This is a vexxing question for me. She was awarded so much of the community property that I have practically nothing of any value left... and I'm living paycheck to paycheck. I don't have friends or relatives that might help me come up with that money, either. I know the best thing is probably to pay the taxes, but I don't see that happening. What else might I do?

[llworking]

This is a vexxing question for me. She was awarded so much of the community property that I have practically nothing of any value left... and I'm living paycheck to paycheck. I don't have friends or relatives that might help me come up with that money, either. I know the best thing is probably to pay the taxes, but I don't see that happening. What else might I do?

Is your lien against the property actually perfected?...or are you simply still an owner? If you have a fully perfected and registered lien against the property you may get something...but only after the mortgage and the property taxes are satisfied.

It really is up to you, but I sure would try to find a way to come up with the cash, or at least the remainder after she comes up with whatever she can come up with.

Of course the other issue is going to be whether or not she is going to be able to pay the taxes on an ongoing basis. If she cannot, then bringing them current and then selling the house now, may be the better option.