I “believe” that the property tax is always payed by whoever is on the deed. When a property changes title after a trustee sale the new owner (lender) I “believe” would then be responsible for the property taxes.
I am not an expert on how lenders make their books look better by holding non performing assets verses releasing them to the open market so I don’t have an answer to that question. I kind of agree with where you are going with this but my only guess is that lenders don’t want to start a landslide by releasing all of the properties…
Input from anyone in loss mitigation from some of the lenders would be useful.
