Question About Tax Foreclosure

I have an investment home in NY that I purchased 4 years ago. There is no mortgage on the home but there are tax arrears of appx 15K. My question is what happens if i dont pay these arrears and simply let the city foreclose and take the house back. Lets say it goes to auction and fetches 30K? Do i get the balance of 15K and will it effect my credit score if it does? Any help/advice would be appreciated.

Comments(9)

  • NewKidInTown35th November, 2009

    You are entitled to the excess $15K, but you may have to go through some red tape to get it.

  • fdi7th October, 2009

    my thoughts as well. I may try criminal because the Health inspector can attest to any NEW Damage. She was there 3 times in last 5 weeks.

  • fdi8th October, 2009

    thanks for feeling my pain on this....lol

  • stangboy04137619th October, 2009

    I had a similar situation and I was lucky enough that my insurance covered vandalism. File a police report and check your insurance policy. What happened in my situation was that the ins adjuster ruled it was vandalism and the insurance co paid me. Then they will go after the tenant that destroyed it.

  • stangboy04137620th October, 2009

    Just do the police report and file the claim, it doesnt cost anything and wont hurt to try.

  • fdi25th October, 2009

    I never though about filing an insurance claim...definitely worth looking at.

  • stangboy04137625th October, 2009

    Keep me posted, I was lucky enough to have vandalism coverage. There is a huge difference between vandalism and normal wear and tear.

  • GimmeShelter5th November, 2009

    .[ Edited by GimmeShelter on Date 11/11/2009 ]

  • haynesm6th November, 2009

    JohnMerchant

    Good advice. That is why I am going to get myself a new Digital Camera. The one I have doesn’t put the date on the pictures. Also, I’m thinking about taking before pictures of the property with the tenant in the pictures.

    GimmeShelter
    So you can’t find them. Surprise, surprise. I am starting to ask for names, address, etc of family members who own property in the area. That way when tenant skips town I can call the boys from Chicago down to have a chat with family and makes it easier to find the dead beats.

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