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  • May 30, 2009 at 1:22 AM #15783
    pepsi
    Participant

    So the seller is doing the short sale (with bank approval), while defaulting on property tax (and incurring penality and charges).
    The seller already moved out of the house (to other state).
    Who would be responsible for the tax and penality charges ?
    Bank is not the owner, so I don’t see why the bank would pay for the tax.
    The owner is not paying and the property will soon be sold by auction.
    Will the buyer be responsible for the tax ? That seems odd to me for the buyer to pay the tax.

    My guess would be the seller, but why would the seller want to pay when they are moving out of state and have no skin in the game ?

    Maybe the bank have to pay if they ever want to sell it ?

    May 30, 2009 at 2:23 AM #407410
    Eugene
    Participant

    Either the bank will pay, or the tax will be paid by the escrow company – either way you should get a clear title without any liens.

    But this is a good thing to ask your agent and, generally, to keep an eye on.

    May 30, 2009 at 2:23 AM #408105
    Eugene
    Participant

    Either the bank will pay, or the tax will be paid by the escrow company – either way you should get a clear title without any liens.

    But this is a good thing to ask your agent and, generally, to keep an eye on.

    May 30, 2009 at 2:23 AM #407654
    Eugene
    Participant

    Either the bank will pay, or the tax will be paid by the escrow company – either way you should get a clear title without any liens.

    But this is a good thing to ask your agent and, generally, to keep an eye on.

    May 30, 2009 at 2:23 AM #407957
    Eugene
    Participant

    Either the bank will pay, or the tax will be paid by the escrow company – either way you should get a clear title without any liens.

    But this is a good thing to ask your agent and, generally, to keep an eye on.

    May 30, 2009 at 2:23 AM #407895
    Eugene
    Participant

    Either the bank will pay, or the tax will be paid by the escrow company – either way you should get a clear title without any liens.

    But this is a good thing to ask your agent and, generally, to keep an eye on.

    May 30, 2009 at 9:33 AM #408023
    SD Realtor
    Participant

    When a short sale offer is submitted to the lender it is generally accompanied by an estimated HUD statement. A preliminary title report should be run so that ALL liens are identified. The HUD should reflect all liens to be paid from the sellers (lender) funds that currently exist so that the lender will get a realistic idea of what they will net.

    All liens need to be removed for title to transfer cleanly.

    May 30, 2009 at 9:33 AM #408171
    SD Realtor
    Participant

    When a short sale offer is submitted to the lender it is generally accompanied by an estimated HUD statement. A preliminary title report should be run so that ALL liens are identified. The HUD should reflect all liens to be paid from the sellers (lender) funds that currently exist so that the lender will get a realistic idea of what they will net.

    All liens need to be removed for title to transfer cleanly.

    May 30, 2009 at 9:33 AM #407961
    SD Realtor
    Participant

    When a short sale offer is submitted to the lender it is generally accompanied by an estimated HUD statement. A preliminary title report should be run so that ALL liens are identified. The HUD should reflect all liens to be paid from the sellers (lender) funds that currently exist so that the lender will get a realistic idea of what they will net.

    All liens need to be removed for title to transfer cleanly.

    May 30, 2009 at 9:33 AM #407719
    SD Realtor
    Participant

    When a short sale offer is submitted to the lender it is generally accompanied by an estimated HUD statement. A preliminary title report should be run so that ALL liens are identified. The HUD should reflect all liens to be paid from the sellers (lender) funds that currently exist so that the lender will get a realistic idea of what they will net.

    All liens need to be removed for title to transfer cleanly.

    May 30, 2009 at 9:33 AM #407476
    SD Realtor
    Participant

    When a short sale offer is submitted to the lender it is generally accompanied by an estimated HUD statement. A preliminary title report should be run so that ALL liens are identified. The HUD should reflect all liens to be paid from the sellers (lender) funds that currently exist so that the lender will get a realistic idea of what they will net.

    All liens need to be removed for title to transfer cleanly.

    May 30, 2009 at 3:05 PM #407799
    urbanrealtor
    Participant

    Not to get too metaphysical here but this is one of those “who pays” questions I get so often.
    Today, at an inspection, I apparently surprised my buyer by telling her that she would not be paying me.
    However, it is paid out of the proceeds of the sale which are paid by the buyer.
    Most people see that as the seller paying.

    In other words, commissions and liens get paid from the proceeds of the sale. This is money that would otherwise be going to the seller. In a short sale, the seller would not be getting that anyway so he does not care how much it is or how much the late fees are. He nets zero either way.

    May 30, 2009 at 3:05 PM #408039
    urbanrealtor
    Participant

    Not to get too metaphysical here but this is one of those “who pays” questions I get so often.
    Today, at an inspection, I apparently surprised my buyer by telling her that she would not be paying me.
    However, it is paid out of the proceeds of the sale which are paid by the buyer.
    Most people see that as the seller paying.

    In other words, commissions and liens get paid from the proceeds of the sale. This is money that would otherwise be going to the seller. In a short sale, the seller would not be getting that anyway so he does not care how much it is or how much the late fees are. He nets zero either way.

    May 30, 2009 at 3:05 PM #408103
    urbanrealtor
    Participant

    Not to get too metaphysical here but this is one of those “who pays” questions I get so often.
    Today, at an inspection, I apparently surprised my buyer by telling her that she would not be paying me.
    However, it is paid out of the proceeds of the sale which are paid by the buyer.
    Most people see that as the seller paying.

    In other words, commissions and liens get paid from the proceeds of the sale. This is money that would otherwise be going to the seller. In a short sale, the seller would not be getting that anyway so he does not care how much it is or how much the late fees are. He nets zero either way.

    May 30, 2009 at 3:05 PM #407556
    urbanrealtor
    Participant

    Not to get too metaphysical here but this is one of those “who pays” questions I get so often.
    Today, at an inspection, I apparently surprised my buyer by telling her that she would not be paying me.
    However, it is paid out of the proceeds of the sale which are paid by the buyer.
    Most people see that as the seller paying.

    In other words, commissions and liens get paid from the proceeds of the sale. This is money that would otherwise be going to the seller. In a short sale, the seller would not be getting that anyway so he does not care how much it is or how much the late fees are. He nets zero either way.

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