Wayne Chambe…, Real Estate Pro in Palos Verdes Estates,...

When there is a lien on your home and you are selling it on a short sale how does this affect theprocess?

Asked by Wayne Chamberlain, Palos Verdes Estates, CA Fri Nov 7, 2008

We are starting to deal with short sales. If someone has not paid property taxes for 2 years how does that affect the transaction?

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Royal Real Estate Group’s answer
When there is a lien on the home, and the maket value of thehome is less than the lien amount in addition to outstanding lien .

It would entail negotiating with the lien holder to accept the sales proceeds after paying off all the mandatory expenses such as payment of outstanding property taxes, sales costs, toward satisfaction of entire outstanding lien debt.

Upon receipt of the offer, you would need to involve the lender/lien holder in accepting/rejecting offer and seeking approval of short pay terms and conditions. Unless, the short pay sales proceeds are acceptable to the lien holder and you, sale upon the home could not be completed.
0 votes Thank Flag Link Wed Nov 17, 2010
It is solely at the lien holders discretion whether or not to pay the delinquent taxes. In all the short sales I have handled I rarely run into an issue with the primary lien holder agreeing to pay the taxes owed.
0 votes Thank Flag Link Wed Nov 17, 2010
Whoever is negotiating the short sale for you will simply negotiate the lien down as well. It's all part of the process. I hope you are working with an experience Short Sale agent!

Vicki Watzlawick
Broker Owner
CERTIFIED Foreclosure Expert
Exit Platinum Realty
Co-Author "Should I Short Sale My Home?"
0 votes Thank Flag Link Fri Nov 7, 2008
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