What happens if I am unable to pay my taxes while in foreclosure?

If you are unable to pay your taxes while in foreclosure in Virginia, you could be subject to a lien being placed on your property. A lien is a legal claim against your property that may prevent you from selling or transferring it until it is paid off. The lien gives the entity holding it the right to receive payment of the debt before anyone else can receive payment from the sale of your property. Under Virginia law, a lien is placed on homes in foreclosure when a lender files a notice of default with a court. This notice of default can also be the first step towards foreclosure, and can trigger other legal actions. Taxes not paid during the foreclosure process are generally paid out of the proceeds from the sale of the home. If the sale of the home is not enough to cover all the debt, the lender will be left with an unpaid balance. This unpaid balance is called a deficiency, and the lender may be able to pursue legal action to try and collect it. If you are facing foreclosure, it is important to know your rights and options. A foreclosure defense lawyer in Virginia can help you to understand the process and build a defense to protect your rights. Knowing what to expect and seeking the help of an attorney early on can help you avoid additional tax liabilities and possibly save you from a foreclosure.

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What happens if I am unable to pay my taxes while in foreclosure?

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