Tax foreclosure in Philadelphia, pa

[Nicole F.]

hi everyone, 

2 side by side properties that were owned free and clear by now deceased owners is acquired by a relative for $1, that relative (now owner) after close to 3 years is behind about $3500 in state taxes. 

does the state foreclose on the properties?

How far behind so the payments have to be before they do?

The owner added their college aged son as co-owner, how does it affect him if the properties are foreclosed?

What is the best option for structuring an offer and/or purchasing these properties?

Would 2 side by side properties with the same owner qualify for fha and/or 203k loans if purchased with intent of doing demo on the smaller, blighted property and rehabbing the larger house into a quadplex?

[Rafael Floresta]

What do you mean by state taxes? Income taxes on his personal return or did you meant to say property taxes? They have different foreclosure processes.

Property taxes goes for foreclosure. In Philadelphia, a property is considered tax delinquent nine months after the city's March 31 payment deadline passes. Delinquent parcels are assessed interest and fees, which over time can grow larger than the principal. By law, properties can be sold at public auction as quickly as nine months after they become delinquent. In practice, that rarely happens, and many properties are allowed to linger on the delinquency rolls for decades.

You can get a Property Tax Payment Plan. Contact the Revenue Department at (215) 686-6442 for assistance.

I dont think a state/federal tax lien can foreclosure, but it will make harder to get clear title.

For the co-owner, it wont be good to have that. I am not sure if property taxes are reported to credit agencies, but I would assume it does.

The two side by side will require separate loans, since they are separate parcels. If you are going with a portfolio loan, all bets are off and the bank is the one to decide how things are structured.