tax lien not addressed in banks list of conditions for acceptance of short sale offer?
My bank agreed to accept a short sale contingent upon a list of conditions being met. In this list they include the minimum amount they will accept my concern is that this list does not include pay off of the tax lien on my home my agent told me that it will be taken care of in escrow .Should I be concerned and is this standard procedure?
my home is in foreclosure this short sale is in effort to avoid the foreclosure.
it is a state tax lien for for delinquent income tax
You absolutely should be concerned. Agents always say things like this because they really don’t know. I’m not bashing your agent here, the most difficult part for agents when working short sales is determining the investor. Some agents blindly believe that if a short sale works one way with Bank of America for example, it will work the same way with Chase. This is not true. The agent is correct in the matter that it will be taken care of in escrow, but how is the real question here. I would highly suggest speaking with the short sale negotiator directly on this to see how this lien is being taken care of. Some investors will not pay a tax lien off, it really depends on the lien itself. Since I don’t know what kind of tax lien we’re talking about and I don’t know the investor, I would research this more. Short sales is a difficult procees, you don’t want to get to the finish line and not be able to cross
2 Responses to “tax lien not addressed in banks list of conditions for acceptance of short sale offer?”
If you have impound in your escrow before it went to Short Sale they will take care of that for you. However if you are paying the property tax and it was separated from your mortgage payment, you are liable for it. I met a woman when I was signing off my lease in my current apartment. She mentioned about Short Sale and she told me that she owed $10,000 in property taxes because she used to pay that and was not included in escrow. When the house was short sold, the Assessor’s Office sent her the bill of $10,000 because that was not taken during the Short Sale Negotiations. In Short Sale the Negotiator will only negotiate the 1st and 2nd mortgage balance, if the mortgage owed was forgiven or not. If you have 2nd mortgage make sure that you ask the Negotiator to make a letter stating that there is no deficiency judgment against you and they will report as closed, paid, settled in less than full balance. They might ask you to sign the promissory note for the whole amt of 2nd mortgage but you dont sign that promissory note. Settle it with the Negotiator by offering to pay the balance within 5% to 10% of the balance, payable in 5 years and no interest. For example if you owe $100,000, settle to pay $10,000 payable in 5 years and no interest. But the property tax you will have to negotiate that with the Assessor’s office. Ask the Assessor’s office to reassess the house for the time you did not pay it, you can get a printout of the sold homes in your area, go to yahoo real estate or zillow.com and put your address and make a printout, complete the form. When you sign the escrow, it will show how much was applied to the property tax but only for the buyer’s tax and not the tax you owed. However, there’s nothing wrong in asking.
Hope this helps.
Comment made on December 4th, 2009 at 5:48 pmReferences :
Homeowner and Forum Guide
You absolutely should be concerned. Agents always say things like this because they really don’t know. I’m not bashing your agent here, the most difficult part for agents when working short sales is determining the investor. Some agents blindly believe that if a short sale works one way with Bank of America for example, it will work the same way with Chase. This is not true. The agent is correct in the matter that it will be taken care of in escrow, but how is the real question here. I would highly suggest speaking with the short sale negotiator directly on this to see how this lien is being taken care of. Some investors will not pay a tax lien off, it really depends on the lien itself. Since I don’t know what kind of tax lien we’re talking about and I don’t know the investor, I would research this more. Short sales is a difficult procees, you don’t want to get to the finish line and not be able to cross
Comment made on December 4th, 2009 at 6:08 pmReferences :
short sale negotiator
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