I have a short sale deal that should close in a couple of weeks. The homeowner just received notification of $4,000 back taxes. Do I have to pay those before closing?
Anyone know the answer? Should I contact the mortgage company and get it included with the repairs? Thanks
JAG
The back property taxes don’t need to be paid prior to closing, they can be paid at the time of closing. If however, you don’t want the $4,000 to eat into the profit you have projected to make, you may want to contact the mortgage company and get it added to the net sheet. Since the net to the bank will drop by $4,000, they will need to get it approved again and send you and the title company a new short payoff acceptance.
In the future you should run a title search earlier so you can be sure all seller costs are included in the net sheet.
Good luck!