Orange County Real Estate: Home Ownership and Property Taxes After the Short Sale
http://www.setthestageforsuccess.com/articles/12994/1/Orange-County-Real-Estate-Home-Ownership-and-Property-Taxes-After-the-Short-Sale/Page1.html
Fred Sed
Fred Sed of The Pahua Group specializes in buyer & seller representation of foreclosures/bank owned REOs and tenant representation of Orange County Rental Properties. Fred also specializes in the representation of homeowners in distress by way of Short Selling. For more about Fred visit: http://activerain.com/fredsed and Short Sale FAQs.By Fred Sed
Published on 07/17/2008
Orange County Real Estate: Who owns the home after a short sale and what happens to the property taxes?
A short sale is treated just like a conventional or traditional sale. The property is first placed on market for the public to see. Then the search begins for a qualified buyer and once that buyer has placed an offer to purchase the home and it is accepted the escrow is opened. Once the escrow process is underway, the necessary inspections are done, and the buyer’s loan is preparing to fund and be complete. Once the escrow closes, the new buyers name is recorded as the new owner of the property and possession is transferred.
After the short sale is complete the new buyer becomes the owner of the property in question. At this time the previous owner moves on to a different property and there mortgage is paid off.
Short sales compare to traditional sales in many ways and property taxes are one of them. People always wonder what homeowners are supposed to do with their property taxes if they want to sell their home, short sale or traditional. If you have already paid your property taxes up to a certain date and your property sells and transfers possession before that date comes around, then you are in good shape.
In this scenario the seller or homeowner is only responsible for the taxes of the property until the very day they are the owners and have possession. From then forward the responsibility transfers over to the buyer.
When you are selling your home - whether in a traditional or short sale - your real estate professional needs to know if you are late on your property taxes or have not paid them. The reason being that this affects the negotiation, especially in a short sale.
Today we have discussed who owns a home after a short sale is complete and what happens to property taxes with a short sale.
In my next article I will discuss whether or not you can short sale your own home and whether or not you can go directly to your bank and try to reduce the amount you owe them. So stay tuned.
After the short sale is complete the new buyer becomes the owner of the property in question. At this time the previous owner moves on to a different property and there mortgage is paid off.
Short sales compare to traditional sales in many ways and property taxes are one of them. People always wonder what homeowners are supposed to do with their property taxes if they want to sell their home, short sale or traditional. If you have already paid your property taxes up to a certain date and your property sells and transfers possession before that date comes around, then you are in good shape.
In this scenario the seller or homeowner is only responsible for the taxes of the property until the very day they are the owners and have possession. From then forward the responsibility transfers over to the buyer.
When you are selling your home - whether in a traditional or short sale - your real estate professional needs to know if you are late on your property taxes or have not paid them. The reason being that this affects the negotiation, especially in a short sale.
Today we have discussed who owns a home after a short sale is complete and what happens to property taxes with a short sale.
In my next article I will discuss whether or not you can short sale your own home and whether or not you can go directly to your bank and try to reduce the amount you owe them. So stay tuned.