Who is responsible for unpaid taxes if homeowner passes away?

If someone passes away who had a reverse mortgage and they didnt pay the taxes on the house for the last year who is responsible for the taxes and the heirs are going let the bank keep the house because the value of the house is a lot less than what is owed on the house?

2 Answers

Sounds like the lender on the reverse mortgage to me, assuming no one other than the deceased party had an ownership interest in the property at the time of death.

Here's how it works.

  1. Home owner has to pay the property tax or the Estate has to pay.
  2. If the home gets foreclosed because no one pays the loan, the lender will pay the property tax to protect their interest. It could take them a long time to figure this out.
  3. If they don't the county will auction the tax bill and a tax buyer will have first priority in the long haul to foreclose. It happens all the time everywhere. The county will allow the tax buyer to foreclose as they only care about their tax revenues and the tax buyer/investor just bought the property for the amount of the taxes owed. The original loan gets wiped clean.