Back Taxes On Short Offer
i submitted a package to bank for a short and their minimum they'd accept (i found this out thru some serious kissing up) is 160k. they told me they pay the (20k) back taxes off with this amount and i'm given the property free n clear with them only netting 140k. does this sound right to you? i'd like them to give me a price to just short the mortgage with them and i can take care of the back taxes myself (i can discount those as well with the county on my own). is there a way to approach them or word my offer so that i get a lower price and they don't pay off the property taxes (in full)?
thank you!
oh and one other point, the bpo they got is soooo way high. they said "we're not allowed to short sale it, if the owner doesn't let us in for an appraisal". i didn't push anymore since i want the sale to go thru, but i KNOW they didn't get in that house - the owner will not let anyone in (kinda militant). obviously to me, the realtor or whoever did the bpo gave them a crock of sh*t! hahaha.
I've never heard of an unpaid property tax bill being negotiable since it's a priority lien. In most parts, that act would require a municipal resolution.
What's your secret?
when doing searches in the courthouse, i always hear folx talking about discounting back taxes before the property is taken from the owner via tax sale (when you can no longer discount). so i assumed i'd at least try it. even .90 on the dollar is still a nice discount on 20k back taxes. they said if you tell the county that you're buying the property and want to make up the owners back taxes so you can buy the free and clear home, but you can't pay it all, they'll help you out!
i was always under the impression that EVERYTHING is up for negotiation, from pizza to taxes. i never pay sticker prices. hehehe
by all means, if i'm way off base, or heard a tail end of a conversation and misconstrued the facts, please correct me. anyone!
[ Edited by jackman on Date 01/31/2004 ]
In 20+ years.... I've never heard that it was possible. However, in the event that a muni tax lien certificate was sold to a private investor... that private investor (tax lienholder) could discount the payoff.... but why would they? They are in business to get a return on their investment.
But the taxing authority would get every penny it's due.
Quote:
On 2004-01-30 19:08, jackman wrote:
when doing searches in the courthouse, i always hear folx talking about discounting back taxes before the property is taken from the owner via tax sale (when you can no longer discount). so i assumed i'd at least try it. even .90 on the dollar is still a nice discount on 20k back taxes. they said if you tell the county that you're buying the property and want to make up the owners back taxes so you can buy the free and clear home, but you can't pay it all, they'll help you out!
i was always under the impression that EVERYTHING is up for negotiation, from pizza to taxes. i never pay sticker prices. hehehe
by all means, if i'm way off base, or heard a tail end of a conversation and misconstrued the facts, please correct me. anyone!
Dear Jackman,
I know, I know never in my knowledge have I seen back taxes discounted, even in a probate estate. But please, please go and try, fail if you must, but try. You may open up a whole other path for those who are in to heavy discounts.
But jackman, be not discouraged if you fail. Cause this is one really big windmill.
And when it comes to back due Real Estate Taxes, the wind never changes.
Rootin and Tootin Lucius
Jackman,
what did the BPO come in at and what's the FMV?
Ryan J. Schnabel
sspro and lufos:
i stand corrected! i will still try, but i realize i must have been wrong in what i heard. thanks for the insight. so i may just accept the free 'n clear property from them. cool!
the bpo must have come in at about 180k -200k because she said i'd "have to get it up to at least 160k for us to accept". so i'm not sure but guaging the conversation gives me that impression.
fmv is funny, hasn't been any turnover on that street to get a very good one, but in the very close neighborhood, that size place goes for about 210k. there are slightly bigger ones for 375k and smaller ones for 165k. i told them that since it's so close to the city, the value is going down - city folk movin out to there and the old residents movin further into the burbs - to try to keep their opinion low in thier eyes.
so i'm thinking i should juss take the 160 and call it all current - still should squeeze a quick 40k outta it when retailed. thanks gents!