Do I pay property taxes when going threw short sale?

[shaung]

I have finally decided that a short sale is my best option and was wondering if I should pay property paxes while I still own the house.Common sence tells me yes becouse I still own it but just wanted to check and see what everyones doing.I am in California,thanks again

[Evan Bedard]

Hi Shaung,

I have finally decided that a short sale is my best option and was wondering if I should pay property paxes while I still own the house.

If you are deliquent on your mortgage while going through the short sale, your lender will be paying your taxes as well at this time.

[shaung]

Really?Wow.I wasn't expecting to hear that I thought I would be responsible to pay them until the short sale was complete.Great news Thanks for the response Thank you....Shaun

[shaung]

I have one more Question for you.If I am able to buy another house under my Dad's name,Can I write off the house if it's not under my name?(intest,taxes,etc.)?My house like everyone else is a big tax write off and we make a decent living but I am worried without a house,we will be killed in taxes after the short sale.

[Moe Bedard]

I want to clarify to make sure no one is confused. If the short sale is going through, the taxes will be paid by the lender through the escrow and sale. Taxes are independent of the mortgage and can be called due at anytime during the process. The likeliness of that happening or very low, but it can happen.

It's always best to speak with a qualified attorney when it comes down to these legal issues and especially taxes.

If the mortgage is not in your name, you can't write it off.

[Larry2630]

hi moe,

we just stopped paying our mortgage this month (can't afford it anymore). our taxes and insurance are not impounded - do i still have to pay it or bofa is now responsible for it? thanks.

[Moe Bedard]

Hello!

The bank is not FORCED to pay the taxes in foreclosure.

Failure to pay the taxes is another reason for the lender to initiate foreclosure. Check your deed of trust. That being said, no, you are under no obligation to pay the taxes. California is a tax deed state which means that your property taxes will escheat to the state and if nobody pays them for 5 years they will then sell the property to the highest bidder at the tax sale in June of that year.

However, in order to clear title in the future someone will have to pay them. Most likely whomever purchases it at the foreclosure sale will pay the taxe to clean up the title.

Taxes are the most superior lien against the property and WILL NOT be wiped from title by anything except at properly conducted tax sale.