“I am thinking about doing a short sale, but I am behind on my property taxes. Will I still have to pay my taxes at closing if I short sale my home?
Here is the answer to Paul’s Question: No. In almost all cases your lender will pay those property taxes for you at closing. Property taxes are a first priority lien on a property.
That means that if a property is foreclosed upon, then they still have to be paid. They don’t go away for any reason (meaning they become your lender’s problem after they foreclose on you).
This is also why most lenders want to charge you monthly and then pay the property taxes themselves via escrow accounts. They know that the taxes are a big bill that only comes once a year.
Not everyone can afford that big bill. Because your lender knows they will still have to pay the property taxes after a foreclosure, they are also willing to pay them during a short sale too.
A foreclosure is a liquidation of the property to simply get what they can and move on. A short sale has been proven to net lenders more money than a foreclosure (that is why lenders prefer to short sale versus foreclose).
So if you have quit paying mortgage and your lender is looking at liquidating the property, they would rather net more money via a short sale and avoid foreclosing on you if possible. That is why they are willing to pick up the tax bill at closing.
Every short sale I have closed has resulted in the lender paying the property taxes that were owed. In some of the short sales I have closed, I have seen lenders pay 2 to 3 years of back property taxes at closing. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at GeorgeKiefer@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (512) 970-0709
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Austin loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, George Kiefer, GRI, CDPE.
George is a Real Estate Agent at Keller Williams Realty. Austin Short Sales Realtor:
Phone: (512) 970-0709. GeorgeKiefer@gmail.com.
Assisting Homeowners in Distress
View My homes for sale at http://www.GeorgeKieferAustin.com.
George Kiefer specializes in loan modification assistance and short sales in Austin Texas. Austin Loan Modification Help, Austin Short Sales. Austin Short Sale Realtor , Short Sale Realtor. Austin Texas Short Sales. Austin Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are George Kiefer’s personal views and do not reflect the views of Keller Williams Realty.
This information is provided as a courtesy to our viewers to help them make informed decisions.
George Kiefer holds the CDPE designation (Certified Distress Property Expert).