Need some help with this urgent question…
The short sale’ng bank has given $5,000 in property tax credit to the buyer.
However, 2011 taxes are already paid for.
Does anyone know if this $5k tax credit can be used to pay for future taxes, i.e., 2012 Q1, Q2, Q3?
Normally "Tax Credit" means reduced price $5k as a credit to buyer for taxes! Buyer already should have the credit! Or the credit was used in escrow to pay the taxes at closing by the title / escrow company! Look at the Hud1?
The HUD-1 has the $5k tax credit available, but the question is, if we close tomorrow and the taxes are paid up-to-date for 2011… then can the $5k be used to make an advance payment for 2012 taxes or will it have to be returned to the short sale’ng bank?
Ask your escrow / title closing officer this question as we have no idea what lenders are doing in your area! Normally the term "A Credit" is turned into cash at closing and goes toward your down payment, your closing cost's or liens, taxes, etc.