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Do Real Estate Tax Foreclosures Show Up On Credit Reports?


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I have some real estate that Im about to stop paying property taxes on with the intent to have it sold at tax sale. Anyone know offhand if the tax foreclosure would affect my credit reports? The property is in my personal name and there are no mortgages or any other liens on it.

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Tax liens definitely show up on your credit report.

They can also end up as judgements if the amount the house sells for doesn't completely cover the amount of tax owed.

I can understand Federal and State income tax liens showing up, but how would the CRA know about a property tax lien/sale? Who would be reporting it?

 

The sale for less than the taxes is a good question, though. Ive heard of banks suing borrowers for deficiency judgments after a foreclosure, but never from a Tax Sale.

 

Depends on if they meet the identification requirements that the CRAs have agreed to enforce. If not, they won't show up but can easily be found by public record searches. Most will not show up. YMMV.

Im thinking the identification requirements would be a benefit to me. The property in question is not listed as a current or previous address on any of my personal reports. Im not sure how the CRAs would be able to get this information unless there would be something during the Tax Sale process that would be considered a judgment.

 

I just cant seem to find a straight answer to this question.

Edited by beekrock
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How would they know? Data vulture groups aggregate and sell that data. Somebody knows and the CRAs pay for their information. How do you think BKs and other public records show up?

I may be wrong, but I think there are only three types of public records on credit reports: bankruptcies, civil judgments, and tax liens. The “tax liens” that are reported, I would think, are liens that are tied to the person, such as Federal IRS liens, as opposed to liens tied to the property, as in this case. For example, if I have a tax lien on property “A” and I go to sell a different property “B”, I’m not forced to pay the tax lien on “A” with the proceeds of “B” since the lien is tied to the property. Again, I could be wrong.

 

Now, if there’s a judgment at any point, that’s a different story.

 

Why not just sell the property vs waiting for a tax sale?

It’s yours for $1. I’ll even loan you the $1 at 0% in perpetuity

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