No a property owner does not have to pay the taxes, that will be negotiated in the short sale process by your agent.

Dyanna

Diane:

Short Sale Lenders require that all liens against the property be satisfied at the time title is transferred. The seller is responsible, but ultimately, the proceeds come from the seller's lender who is agreeing to take a short sale payoff on their lien.

As a buyer, when you purchase the home you will get title insurance (do not purchase without it). If some unforeseen lien appears after the close of escrow, your title insurance should pay it. That is the main reason for getting title insurance, to insure you are taking the home "free and clear" of all liens not specifically disclosed in the title policy. Make sure you understand the exclusions. John's advice to review with the title officer and agent should be followed.

Then, kick back and enjoy the great deal and great home you just bought. And Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

Property taxes are a lien on the property and must be paid. All the expenses & liens associated with a property are part of the short sale negotiation with the lender. Once the gross amount of debt, expense and liens are established, the short sale is negotiated. The lender gets what is left. This is usually less than what the lender is owed. The shortage is what gave rise to the terms "Short Pay", "Short Sale", etc. Once the sale has closed the property should be current on taxes and the new owner is liable only for new taxes. One caveat; occasionally, there can be a "Supplemental Tax Bill" involving the previous owner which gets sent out by the county AFTER the short sale has closed. This is unusual but if it happens it will be very difficult to get the lender to take responsibility for it. Check your preliminary title report carefully when buying a short sale and try to understand if the county will be sending out a supplemental tax bill when buying a short sale.

Your agent and title office should be able to help on this.

John Hickey
Dilbeck Realtors, GMAC
818-541-7311
John@JohnHickey.com http://www.LaCrescentaHomes.com

you are still responsible for paying taxes as long as you are the owner. Any other questions send me a email or call. I've assisted many in these type situations