Homeowners face foreclosure from seller’s unpaid tax bill

Source: Ilyce Glink & Samuel J. Tamkin, Washington Post (Paid Registration)

Q: I bought a home in 2013. I received free and clear title to it. However, this week I was served with papers for foreclosure because of the previous owners’ nonpayment of back taxes. It appears the town failed to disclose the tax amount when researching the deed. Do I have any recourse? It’s over $6,000.

A: Yikes. An owner’s title insurance policy should cover your loss should you decide to pay the unpaid real estate taxes. You’ll have to follow the specific requirements listed on the title insurance policy to notify the title insurer of your claim on the policy so that they can either defend you against the tax collector’s office or write a check for those back taxes.

 

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