If the property owner is arrears on the mortgage loan, they are most likely in arrears on the property taxes and thus the local jurisdiction is a party to the contract........
With that said — this is a truly scary concept.
My husband and I went 3 years without a steady/reliable income and the worst we got was 6 months behind on the mortgage - bad, I know - but we finally got it all square.
“If the property owner is arrears on the mortgage loan, they are most likely in arrears on the property taxes and thus the local jurisdiction is a party to the contract........”
I guess you missed the meaning of what I said. Mortgage and taxes are two separate matters, and the city is NOT a party to the MORTGAGE contract. I know, I’m a real estate broker.
Cities do NOT use eminent domain to place a tax lien on property for delinquent taxes, they use a tx lien, and at some date may sell for taxes.
The concept of eminent domain is separate from taxes and separate from mortgages.