Will My Lender Pay My Delinquent Property Taxes As A Part of My Short Sale?
The answer is maybe. It is not uncommon for a short sale seller in financial distress to have unpaid property taxes. During the housing boom, many lenders did not require tax and insurance impounds. And often, the first thing a homeowner will stop paying when they get into financial trouble – is their property tax bill. Many times the back taxes can just be deducted from the net that the lender receives from the sale – but the short sale lender has to approve it. And if the amount owed is very large, a lender may object to back taxes being deducted from the net amount they receive from the short sale.
Home owners who wish to complete a short sale of their Central Coast home should be aware that payment of their back taxes could become a sticking point in negotiations. In some cases, the buyer may be willing to pay the back taxesm– but their lender may object, in other cases, the buyer will simply object to paying your back taxes. After all, not many people want to pay other people’s taxes. In addition, short sales have been back around the block for awhile now and savvy buyer’s agents will be looking at your property tax record before writing an offer to determine if unpaid property taxes could become an issue in the short sale. So, it could deter a buyer from even writing an offer on your property. So, I do advise potential short sale sellers to stay as current on their property taxes as possible. Current taxes can make your short sale easier to successfully negotiate.
If you are considering a short sale of your Orcutt, Santa Maria, Arroyo Grande or Pismo Beach home, you should seek out an experienced short sale agent to guide you through the process. There are many pitfalls that can be avoided with the right upfront advice. If you would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, Short Sale Agent and Certified Distressed Property Expert (CDPE) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
*Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Copyright© 2011 Tni LeBlanc * Will My Lender Pay My Delinquent Property Taxes As A Part of My Short Sale?*
