Foreclosure University Property Taxes

Question: my x husband and I bought a home through USDARuralDevelopement program. We have our property taxes deferred because we are over 62. My question is one of us cannot afford the payment. We were told by a RE Agent that we can be “forgiven” one time on all we owe? Is this true? and as far as the property taxes can our Social Security be garnished?

Answer: -  Yes, there is such a program called Senior Citizens Tax Deferral Program and like everything else you must meet certain criteria in order to qualify, like Age, Income and how long you’ve Owned the home.  And as far as I understand it does not eliminate your property taxes, it only lowers the amount you have to pay in property taxes and “defers” the rest.  Each state may have different qualifications so you may want to contact the Property Tax Division in your state to get more info on it.

Question: I have a mortgage and home equity line of credit on the same property with Countrywide. I am in Florida. If my property is foreclosed upon what happens to the home equity line of credit? Also am I held liable for taxes up to the foreclosed date?
Thanks

Answer: -If your home has a first and second with the same lender, Countrywide, it’s almost treated like it’s one loan.  If they send it through foreclosure, they’ll probably start at just what’s owed on the first and hopefully get someone to bid on it…If no one bids then they’ll end up with the property.  Then they’ll probably write off that 2nd in which they could file for a deficiency judgment but more than likely they will 1099 you for that amount they lost and you’ll have to pay taxes on it.  As for the property taxes, they’ll have to pay those in order to sell it to an end buyer.

Question: If I hold the first and the second is foreclosing
what can I do to ensure that I will still be paid?

Answer: -Lien holders get paid based upon lien priority and there are a few “rules”.  Lien priority is based upon when things are recorded.  So if you are in 1st position, you will get paid before someone in 2nd, 3rd, etc.  So if they 2nd forecloses and no one bids, they have to pay off all senior lien holders.  Property taxes are the only exception, they always get seniority over everything no matter when they are recorded.