Fannie Mae-No Politics (FNMA)

[Steel Penny]

. Also when a bank owns a repossessed property do they have to pay property taxes on it or have they gotten some special treatment designed for that as well?

They do have to pay taxes like any other owner. Each state has their own rules. In California you can not pay your taxes for 5 years before your house will go to "county tax sale". Their will always be interest added and usually a penalty to boot. Banks don't ever want to pay these charges so they will pay the taxes on time. Also, as an added incentive, if a penalty is added for non-payment, such penalty can not be deducted on the party's tax return. Not a real fine option.

Sorry I can't asnwer the other part of your question.