Hi Mark Peek here at Keller William’s Real Estate. I am your short sale specialist in the Roseville and Sacramento area and I dedicate myself to educating homeowners and providing them with the resources and information to avoid foreclosure and successfully short sell their home. Today’s topic is about a question that I get asked quite often, "Do I have to pay real estate taxes during a short sale?"
The answer to this question is absolutely not. You don’t have to because the lender realizes that in a short sale they will have to cover it. Even if they let the property go to foreclosure, they’d still have to pay the real estate taxes. They’d also incur penalties if the taxes weren’t paid. Banks have actually begun to realize that it’s better for them to pay for the real estate taxes before they become penalized and the balance grows quite a bit. If I remember correctly the penalty is 10-15% of the balance if the taxes aren’t paid by the due date.
Again, real estate taxes do not have to be paid during a short sale, however there are a few things I do highly recommend that you keep paying during a short sale and one of those is your homeowner’s association fees, if at all possible. With HOA fees, lien holders usually will not pay those in a short sale because if they were to foreclose on the home they wouldn’t have to pay the HOA fees.
If you have any specific questions about your situation or what you should pay or what you don’t have to pay in a short sale, please give me a call or click the Start Here button at the top of the page. If you’re also wondering if it’s the right decision for you to move forward with your short sale, what the value on your home is and how long it will take for you to get back to a break even situation, please utilize our Short or Stay Calculator. This can be a very helpful tool if you feel like you don’t know which path to take. Again, please call me, Mark Peek, your short sale specialist in the Roseville and Sacramento area, with all of your real estate and short sale questions.