Real Estate Community Forum

My brother owes back taxes on his house in the amount of $15,000. As a result of his back taxes, his house is now in foreclosure, but he never went through a bank. Instead he makes his monthly payments to the previous owner. How does it work if he owes money to the owner? Will the house be given back to owner or the city since he owes government taxes?

Also, is it possible he can sell his house before it's sold at auction to get some money from it and save his credit?

Your question is a little confusing. I am assuming that the previous owner is holding the mortgage for him. If so, then the owner of the mortgage/previous owner is starting the foreclosure process. Just like a bank would do.

There may have been some agreement in the contract/ note your brother signed allowing the owner to do this in the event that your brother did not pay the property taxes.

Though states have different time frames and processes for collecting property taxes, it seems that your brother needs to take a look at his contract and contact a real estate attorney to help him through this rough period.

I wish him good luck

If the house is in foreclosure, the owner of the deed will be given the house back. Most homeowners take out a mortgage and the bank holds the deed till the mortgage is paid off in full. If the original owner is holding the deed and payments are being made to the owner, then if the house goes into foreclosure the house goes back to the original owner.

If your house is in danger of being foreclosed, there are several programs available for people to help keep their house. The banks really don't want your house, not do the original owners. For more advice on this subject contact a real estate lawyer. They deal with these problems all the time and can help answer all your questions.

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