Ontario Tax Sale Property
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Chapter: OTHER TAX SALE PROPERTY SALES
Jchilcot
I purchased a property at a local tax sale recently. I did my research but somehow I missed a 7000 mortgage on it. The mortgage company said they would probably foreclose on it to get there money. Would that be a forclosure on me or on the previous owner? And another person I talked to from the mortgage company said they will redeem the taxes before the property is transfered to protect their intrests. Any one have any experience with this? The state is Pa.
Frank
Don't know anything about how the rules read in Pa. However, I'm sure that they are similar. In Ontario, the courts have ruled that until the vesting deed has been registered in your name - the owner can still redeem the property by paying the taxes. A third party such as a mortgagee can pay the taxes as well as they have an interest in the property. No doubt the terms of the mortgage state that if they ever have to come to the rescue, then they have the right to foreclose.
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