Who is responsible to pay taxes after you go to foreclosure?

Answer 1

Presumably you mean property taxes...the property is responsible legally.

That means, the owner of the property must pay them or the tax collector could sell the property to collect it.

Until the property is sold, and no longer owned by the borrower, he is responsible for everything. Its his. As is the obligation to pay the loan as he promised. No if, ands or buts! He will not benefit or have anyone else pay anything that he would have by not making good on his legal promise.

In fact, any and all costs of the foreclosure or attempts to collect the debt, EVERYTHING - the borrower is entirely responsible for. When the foreclosure happens, the amount generated goes to pay that total amount....the banks attornies, the collectors phone calls, the back taxes, penalties, interest, etc, all due....EVERYTHING is included in what the borrower owes. If enough isn't generated by the sale...then THE BORROWER is still responsible for the rest. The court provides a deficiency judgment and and other assets of the borrower will be sold to pay off the remainder, and/or wages garnished, etc.

Finally, if an amount is forgiven by the lender, that becomes taxable income to the borrower and will be reported on a 1099-C. The borrower will owe the IRS tax on it. Problems with paying the IRS make problems with paying your mortgage seem easy.