Research Property Taxes before listing Short Sales
By Regina P. Brown, M.B.A., Broker, Instructor
(MBA Broker Consultants)
"Why would we want to find the tax assessor records for a property?" you may ask. ANSWER: To prepare the HUD-1 before sending it to the short-sale lender. For example, a homeowner may be 2 years past due on their property taxes, but you fail to list the past-due taxes on the HUD-1. Then the short-sale lender approves the HUD-1 as WRITTEN. So you go to escrow, the title company runs a preliminary title report (AKA "prelim") and you find out that $10,000 is owed in property taxes. Now the short-sale lender (bank) won't approve any deduction in their "net" proceeds as written on the HUD-1, so now you're in a quandry. At this point, the choices are: You can pay the extra $10,000 that was not accounted for (no commission for you, eh!) You can ask another party to pay it ~ good luck with that...