Foreclosure in Brentwood>Question Details

Dan  C., Home Seller in 94513

Contra Costa County Property Tax question/ SHORT SALE

Asked by Dan C., 94513 Tue May 15, 2012

I plan to short sell my rental property home in discovery bay in one year (after current lease is up). what can I expect from the county for the non payment. I was told that during the short sale the banks will settle with the county for the back payment of the taxes.. Is this correct... will it affect my credit? Will a lien be put on my home...how long does it take to put the lien on it?

Thanks!

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Hi Dan,
First let me say that a short sale is not a 'right' and your lender will need to agree to do it. With regards to property taxes, they will need to be settled in the transaction so the buyer gets title free and clear. In addtion to property taxes you will receive a 1099 for the amount of forgiven debt. You may or may not owe income taxes on this amount. Finally when the rental property is disposed of there will be a gain or loss on the sale. You should get professional tax advice on what your tax liability will be before deciding how to proceed.
Good luck,
0 votes Thank Flag Link Tue May 15, 2012
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