Short Sale Cost breakdown

**lookin** · 11-19-2009, 10:27 AM

Hello,
I am involved (buyer) in a short sale and had a question about the costs that have been rolled into the listing price. The breakdown includes the current owners delinquent property taxes. Should I be paying this? That just doesn't seem right. The short sale is helping to protect the current owners credit as it is. Throwing the delinquent taxes in too seems wrong!

Thanks,
Dave

**Greg** · 11-20-2009, 04:49 AM

The seller doesn't have the money to pay the taxes and if the taxes are not paid then the you can't buy the house. There won't be any money to do repairs either.

Instead of breaking down the numbers to see what is fair you should be looking at the bottom line and see if the house is worth it. If you are getting a real deal then don't worry about who pays what.

Has your agent done a CMA for you?

Not all short sales and foreclosures are deals. Make sure you are looking at the big picture. If the house is not so much of a deal then you could ask for the bank to pay the taxes, they will have to pay them if they foreclose.

Good luck.

**RyuukoGo** · 11-20-2009, 07:31 AM

The past due taxs are usually taken out of escrow..as mentioned before...what you end up with after everything is paid,closing costs and so on,should be in writing so you can decided if its worth it.

**lookin** · 11-20-2009, 11:33 AM

The price of the short sale is at the high side of the comparables. The home last sold in 2005 at a MUCH higher price. I think that not only the taxes but the listing price will have to be talked about with the bank.

Thanks to all for your help and advice.

**Greg** · 11-21-2009, 06:23 AM

What they paid for it in 2005 is irrelevant. The only thing that matters is what it is worth now.

**PreviewOrangeCounty** · 11-21-2009, 09:34 PM

From my experience most banks will pay delinquint property taxes, even B of A! Short sale transactions can get very sticky when there are "extra" costs that are typically paid by the seller in a standard sale.

I recommend negotiating with all parties and evaluate the bottom line of the deal and see if it is still appealing to you.