Property Liens vs. Personal Debt
Yesterday’s post discussed the aftermath of a home sale when the new owner is AWOL.
Today’s discusses the former owner’s potential liability, post-closing, for any issues that result.
First, a mea culpa: while my visit to Hennepin County yesterday initially resulted in — shall we say — some “wheel spinning,” that changed by the end of the day.
Specifically, I got a call back from the manager of the Property Taxes department, who gave me his direct number and offered to personally reassure my (upset) clients that they didn’t have to worry about paying the delinquent property taxes on their former home.
He also explained that their ultimate risk was zero: eventually, unpaid property taxes becomes a lien against the home (vs. a personal debt).
In the unlikely event that the new owner never pays the taxes, the county would be able to foreclose on the home, sell it, and recover its debt from the proceeds.
An unpaid water bill also turns into a lien against the property.
But can’t unpaid bills relating to the former owner’s home damage their credit?
Nope.
That’s because Hennepin County doesn’t report delinquencies to the credit bureaus.
Which just leaves irate neighbors, at least for the time being.
