Own property Tax from another county? Foreclosure?

Question

Earlier today I was served with legal document regarding my home, I don't know much about the legal stuff, but according to the Plaintiff (who I believe bought the tax lien from the county), I own tax on my property, although I have paid my mortgage on time for the last 10 years, good chunk of it goes to escrow (Tax & Insurance). Later they explain some portion of my property falls in another country and I own tax on it and my house could be foreclosed. (New York City Property, small portion falls into Long Island)

I have reached out to my bank, the customer service rep looked in my account and told me my mortgage is in litigation, she then tired to get a hold of the attorney that's handling the matter, and she did not pick-up her phone. I'm really concerned and not sure what I should do as a homeowner who mortgage payment are up-to-date.

Peter Walther · Answer

I agree with Ned, get thee to the Tax Collector's Office pronto and pay the tax. If it's only a small piece of property the tax owed should be correspondingly small. I'd also pull out your docs from closing which I assume you still have. Take a look at the legal description on the deed and the title policy. Do they seem to describe the same property? Does the description seem to place the property in two counties? I'd also search your name in the Public Records looking to see what has been recorded. If the property is in NYC you should be able to use ACRIS. ACRIS (nyc.gov). If it's in Nassau County you could try here Welcome to 20/20 Perfect Vision Land Records I2 (uslandrecords.com) I might also ask the attorney/settlement agent who closed your purchase and ask them to do a quick title search which you may have to pay for just to double check your work. I would also start looking for an attorney to represent you. If a suit has been filed and you've been served, even w/o realizing it, you have a limited amount of time to respond. If it were me, I'd be hustling to figure this out today.

Ned Carey · Answer

@Rahill Rah I don't know the specific rules for your state but I do lot of tax lien foreclosures. Pay the tax. Worry about the details later. I see this all the time, people argue over details about why the property should not be in tax sale but never take the time to pay the taxes. Ultimately they lose the house and then expect me to feel sorry for them. Bottom line pay the taxes -m then worry about who or how to get reimbursed. If your mortgage company has been escrowing for taxes it should be their responsibility. However were they even aware of the 2nd part of the property in another county? Did the original title company do their job right? Did YOU get title insurance for yourself. The title insurance your Mortgage company bought may not help you at all.Now from a different perspective, if the part in another county is a tiny corner of your lot with just a few square ft. then who cares if you lose it? If the county line goes through your front yard and blocks access to your front door or goes right through the house that is a different matter. In the first case I might choose to let it go. I would be confident that the tax lien buyer would not bother to spend the money to record his deed for a worthless (to him or her) lot. In the second cased you better believe I am going to be down at the property tax office tomorrow paying the taxes and then filing a claim against the mortgage company or my title insurance. Now another question is what do you mean by "Your mortgage is in litigation?" That statement would worry me as much as the tax sale issue.

Ned Carey · Answer

@Rahill Rah Of course you can pay it off. Don't wait for the mortgage company to do it for you. It is your house. You are the one who will suffer if you lose it. Assuming this is a tax lien and not a tax deed you absolutely have the right to pay. And if you don't, you are at risk of losing the property. Call the tax office and find out how you go about paying the tax lien off. This is usually called "Redeeming" the property or the tax lien. Take the notice you received with you, so the person is clear that you want to pay off the tax lien.

Wayne Brooks · Answer

@Peter Walther @Rahill Rah It seems as though this a failure to record the new deed in the other county, along with the county it was recorded in? Without recording a new deed, the taxing authority would have no idea the property had changed hands and no new address to send tax notices to. Assuming these are taxes due while he owned the property, would there be a claim, not against the title insurance, but against the closing agent/attorney’s E&O policy for failure to properly record? I’m referring to penalties, interest and redemption costs, not the actual taxes that were due.

Peter Walther · Answer

It does seem the tax debt seems high particularly when you write your mtg payment includes escrow for taxes. I'd confirm what tax years the debt is for. If it's from after you took title I'd ask the bank's atty what happened to the tax escrow. If it's from before you took title I suggest you immediately submit a claim to your title insurer. I'm surprised you haven't been receiving notice of the unpaid bill even though you've been escrowing since you owe the tax. I have seen situations where tax payments have been misapplied as a result of an error by the payor, your bank, the Assessor as a result of an incorrect PIN No. or the Collector as a result of the PIN for the correct parcel.

Rahill Rah · Answer

Just an update, I have just received a call from the bank lawyer, and he said they will protect the property and advance any fund as needed.

Chris Seveney · Answer

@Rahill RahYou need to get a lawyer as well. When the bank says they are advancing the funds they are doing it to protect their interest in the mortgage but they will then turn around and send you a bill showing you owe them $28,000 in taxes…

Peter Walther · Answer

Did you ask the bank's lawyer what the litigation is about? I'd also ask him/her to send me a copy of the pleadings.

Bruce Lynn · Answer

I don't think any website is going to help you. Probably worth it to get an attorney to help you. You don't want to loose the house. The problem it seems is that you have not paid all the taxes...or the lender did not pay out of your escrow account. You are responsible for paying or making sure they get paid.

Bruce Lynn · Answer

YOU should be concerned. Very Concerned. Sounds like your lender has not paid the tax for Long Island. You need to be all over this until it is resolved or potentially you could loose your home or be evicted.This is not an uncommon situation and your mortgage company needs to be on it pronto....and you need evidence they have paid the bill. You should get all the documentation from Long Island about what is owed and also ask for evidence of where the tax suit filings/notifications were sent. You can then share this with your lender.Make sure all taxing authorities have your correct mailing address and contact information immediately.