Property Tax Not Paid from Prev. Owner and my Home in Foreclosure

[Edmond Dantes]

Hello everybody,

I have purchased a single family home in October 2020, with a cash offer.
In January 2021, I asked my property manager to pay my property tax of about 2,000$, she accepted and has paid with a check on 26 january 2021. The amount of 2,000$ it included a delinquent tax of about 1,000$.
Some weeks ago the tax was unpaid and for this reason I contacted my property manager to ask her the reason for this payment not accepted. She thought there was a problem with the County closed to Covid for months and running behind on all functions including processing these tax payments.

I have sent an email to the County Treasury Office and they told me that the Treasury returned the Check to my property manager February 18 and Parcel in Foreclosure. Moreover, they told me to contact them for payoff to dismiss foreclosure and that the payment must be in certified funds, cashier's check, or money order. Following payment in full the Prosecutor prepares the motion to dismiss and gives an Order to the Judge to sign and the foreclosure will not be deleted, only dismissed.

The day after, my property manager called the County Treasury Office and she told me that my home was in Foreclosure from the previous owner and this should have been cleared when the title transferred, but it was not. They required a Cashiers Check for payment. After a few days, my property manager has paid about 3,000$ with a Cashiers Check, so I have paid more than 2,000$ of delinquent taxes...Fortunately the County has accepted this payment and now the amount due is zero.

The Title Agent told me that the attorney for the prior owner was in the process of communicating with the Prosecutors Office in order to get the Foreclosure vacated, but the attorney that handled the foreclosure reached out to the county prosecutor's office and they are out of the office until next week. Moreover he believed I was mischarged from the county. Looking at the attached tax bill I should have only paid $2,000. He spoke to the prosecutor’s office and they advised that there is a new role where if a property is in foreclosure the owner has to pay the full year tax amount which was $2,000 for my property. He suggested I take this up with the county treasurer’s office because they made you pay $3,000…

Now my situation is in the hands of the Courts when a judge will dismiss the Foreclosure. The agent of the Title Agent and the County says I will not lose my home; I hope so.

I'm very worried about this horrible situation and I hope someone can help me to answer to my questions:

1) Should the title insurance protect me from Foreclosure and refund me from the delinquent taxes?
2) When will the Judge sign to dismiss the Foreclosure?
3) What does it mean " The foreclosure will not be deleted, only dismissed"? Will the Foreclosure problem be resolved permanently?

4) I could have another Foreclosure's problem if the previous owner has not paid mortgages or other?

5) Do I need to hire a lawyer?

Thanks for your help

[Edmond Dantes]

Originally posted by @Tom Gimer:

@Edmond Dantes That's good news... the judgment entered in the tax sale foreclosure case was vacated (rescinded) and that case has been dismissed (ended).

All you care about now is being made whole for the money you spent... and it actually doesn't matter who pays you. The title agent will likely go out of pocket now and pursue the seller for the shortage.

Hi Tom, the title agent has sent me the policy that I have attached to this post. 

I have 4 questions for you:

1) If I have purchased the home on 7 October 2020, why is the policy date 16 November?

2) What do you think about the maximum dollar limit of liability?Covered risk 16: 

a) $10,000Covered risk 18: $25,000

b) Covered risk 19: $25,000

c) Covered risk 21: $5,000

3) Where I can see if the previous owner has not paid mortgages?

4) If the total amount of unpaid mortgages is more than the maximum dollar limit of liability, what happens? Another Foreclosure of my home?

Tom, thank you very much for your help

Have a nice evening :)

[Edmond Dantes]