My sense is that they won’t typically because the person who bought the tax lean is now in first position IF they start the foreclosure process. What is the TIMELINE of how long the home owner has (if they haven’t paid their taxes) until the lender will not accept a short sale?
Thoughts/Opinions?
A lender will accept a short sale regardless of the back taxes due. These taxes are used as a negotiation point in the short sale negotiations. I generally take the back taxes due and include them in my list of deductions to the property to create my offer number. Should the bank buy the property at auction, they will be required to pay the property taxes, so they will generally agree to pay or deduct for them in negotiations.
GooD LucK! :beer
Interesting…thanks Matt
You would include it on the HUD…Line 510 or 511 on the sellers side under “adjustments for items unpaid by seller”. It will reduce the net to the bank