Short Sales – Can I Sell Even If I Owe Back Property Taxes?

Short Sales – Can I Sell Even If I Owe Back Property Taxes?

By Dave Halpern, Realtor, Louisville Short Short Sale Expert, (502) 664-7827 or (502) 895-3100

Yes! You can sell your house even if you can’t afford to pay the back property taxes. In a short sale, your lender will usually pay your closing costs for you, including your back property taxes.

Doesn’t make sense? Sounds too good to be true? The bank is hounding and pounding you to make a mortgage payment, so why would they pay thousands of dollars of your selling costs?

Here’s why: When you owe too much on the house and you can’t sell the house to cover the mortgage payoff and closing costs, the bank knows they are in trouble. If you can’t make the mortgage payments the bank either has to incur the huge cost of foreclosing or they can let you sell the house for an amount short of the payoff, often called a “short sale”.

The bank prefers to get a check for an amount short of the payoff rather than get the keys to a house that they have to liquidate and net less than they would in a short sale.

In a foreclosure, the bank eventually has to pay your back property taxes one way or another. They might as well pay your taxes now so they can get to the bigger check waiting for them.

Not all short sales are alike, and sometimes the bank isn’t prudent enough or efficient enough to approve the short sale. In an ideal successful short sale, your lender will typically pay all closing costs, including attorney fees, transfer taxes, back property taxes, current year’s prorated taxes, homeowner association fees, real estate commissions and more.

If you need a short sale, make sure to work with a Realtor who has a proven track record of closing dozens of short sales per year. A professional short sale expert should be able to produce many testimonials from prior clients and proof of eliminating millions of dollars of mortgage debt shortages, liens, property taxes. Also, ask the Realtor about short sales that didn’t work out and what the reasons were.

Many homeowners make the wrong assumption that they have to go to foreclosure because they owe too much. Please call Dave Halpern (502) 664-7827 to find out about options you may not have considered. I have helped many families sell their house at no cost to them even though they owed thousands or tens of thousands more than the house was worth.

Dave Halpern, Realtor
Dave Halpern Real Estate Group
Keller Williams Realty Louisville East
Cell (502) 664-7827