Foreclosure Scenarios

• When a debt is owed on a mortgage or second mortgage that a borrower is unable to pay, the lender will foreclose. In a foreclosure scenario, paying off the debt owed for a property will transfer ownership rights to the purchasing entity.
  
  

Property Tax Scenarios

• On properties that do not hold a mortgage but have owners who have failed to pay property taxes, the county tax office can file a lien on the property. If the lien goes on for an extended amount of time---in most cases two years---the county will foreclose. In a county tax foreclosure, the winner of the auction that pays the taxes owed on the property assumes ownership.
  
  

Considerations

• Paying off a debt for a friend or family member will not transfer ownership without documentation. Thus, simply paying off a debt on behalf of the owner will never convey property rights without supporting real estate contracts.