Dump it or keep it, all comments are welcome.

Condo in CA has dropped 200+k. Owners live in a family home (not condo) that they'll inherit. That said, the condo is now an investment. Keep the condo and continue to pay 3k+ a month, or let it go? Note, I personally don't consider this condo an investment anymore, it's basically a fire pit now. The money going into it is just to keep the fire up and running. The owners' credit will obviously be effected, but now the owners' will have more liquid. Will the owners' have to pay property taxes if the home is foreclosed on this year? Note, all comments are welcome, and this a Lehman's inquiry.

If it get's foreclosed on the bank will get stuck with the backtaxes. Property taxes are one of the few items that are not wiped out in the foreclosure process.

If they were wiped out cities and counties would never collect the revenues and fire,police,and other government entities would cease to exist as there would be no funding for them.

Generally if back taxes are owed the city or county will sell off tax certificates to get the money now and then add penalties and interest which the investor will recieve for there investment. Every jurisdiction is different in how they handle taxes and the process.

It's to hard to say whether to let it go or not. Depends on what it could sell for now and a 100 other factors. You need a broker in your area to get the specifics of your situation to give options.

Hard to say
Depends on the laws of your state
I can tell you how its here in Florida, but it may be a little differenet where you are.
Here in Fl all the government liens (*1)are superior and thus are not wiped during forclosure. They stay on the property. The previous owner has bad credit but the new owner takes the bill so to speak.

*1 IRS leins are in a seperate boat so to speak. They are wiped off the property in 180 days but not the person.

So the answer to your question is to seek out someone who knows the laws specific to your area. Sorry I could not be more help as my answer only will apply to FL and may not apply to you

In some states they can go after your assets. The difference between what they get for the property after the foreclosure, and the amount owed, they can come after you for the difference. Depends on your area; sometimes it doesn't pay to just walk away.