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Question: 1 / 1505

Who is responsible for property taxes when a property is in the process of being foreclosed?

Beneficiary

Trustor

The trustor, in the context of a foreclosure, is generally the party who holds the title to the property and is responsible for the mortgage. When a property is in the process of being foreclosed, the trustor retains responsibility for paying property taxes until the property is sold or transferred to a new owner. This means that even though the property may be in default, the legal obligation for taxes remains with the trustor.

It's important to note that during the foreclosure process, while the property is still owned by the trustor, they have not yet lost their legal rights to the property. As a result, property taxes must still be paid to avoid additional penalties, which could worsen their financial situation. Upon the completion of the foreclosure, and if the property is sold to a new owner (whether it be the lender or another buyer), the responsibility for taxes then shifts to that new owner.

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