Summary: Short Sale and Real Estate Taxes
Whey you go out and buy real estate, you should make sure you understand the process of buying a home and surround yourself with a competent real estate attorney, real estate agent and mortgage broker or lender. You should do that and more if you decide to move forward and buy a short sale home or even a foreclosed home. Now more than ever, buyers need to use caution before buying a home.
You might not think that you need an attorney for the purchase or title insurance or a real estate broker, but if you don’t know what you are doing, you might pay dearly.
Short Sale and Real Estate Taxes
Q: When buying a home on a “short sale,” is the buyer liable for any past-due real estate taxes?
A: The buyer of a short sale property might not only be responsible for unpaid real estate taxes, but might be required to pay off other liens that are attached to the property.
That’s why you (or a real estate attorney) should do some digging and make sure you check out any possible liens before you close (and preferably, before you negotiate the price).
Depending on the terms of the short sale, you might buy the home subject to the liens.
For most home buyers buying in a short sale situation, the home buyer will treat the purchase in the same manner as any other purchase. Typically, a home buyer will only close on a property if all liens and real estate taxes have been paid in full at or before the settlement or closing.
With a short sale, you must take extra precautions to make sure that everything is paid in full before closing. You should also make sure that the closing agent, settlement agent or title company working with you to close the transaction gives you title insurance coverage over those liens or other matters that might not have been paid by the seller.
In a foreclosure, the liens are typically settled through the court process, but in condominium associations there may be some lingering issues with association fees and dues. While it may be safer to buy a home that has already been foreclosed upon than buy one in a short sale, you still have to be vigilant about these issues and all the other issues that can hurt you if you don’t know much about buying real estate.
For more articles on short sale issues, read on:
Short Sale And A Full Price Offer
Short Sale Buyer May Lose Money
Short Sale May Not Be The Answer To Your Money And Income Problems
Short Sale Might Not Be Possible When You Have Money To Pay Your Bills
Unpaid Real Estate Property Taxes: Redeeming The Tax Sale
Similar Posts:
- Lis Pendens May Prevent Sale Of Your Home
- Foreclosure Home For Sale May Require You To Contact The Lender
- $8000 First-Time Home Buyer Tax Credit: Must Live in House To Qualify
- Investment Property Short Sale Generates Phantom Income
- Homes for sale in Casa Grande AZ – Real Estate
A nice thing you’ve told us… thanks! the short sale is not so smooth as it seems, there are a lot of charges and bills to pay. Its a good idea to consult a mortgage expert – definitely worth it. So if you like that house and you are in the hurry you can buy it just be careful.