Can I short Sale in West Sacramento if I owe Back Property Taxes?

I have not paid my property taxes in over a year, When I short sale in West Sacramento will I have to pay the back taxes a client recently asked us. The answer is no. Again, without giving tax or legal advice, in California property taxes are a lien on the property not a lien on you personally. Because property taxes are senior to the note, meaning that in a transfer of ownership, be it a regular sale, West Sacramento short sale or even foreclosure, the property taxes get paid before the lender gets paid. Because the banks know that they will have to pay the property taxes even if they foreclose, they pay the taxes in a West Sacramento short sale.

  

Always remember, for the banks it is purely a financial decision. They are not looking to punish borrowers or kick you out of the West Sacramento property; they are looking at mitigating their losses. They know that a properly completed West Sacramento shortsale will net them 25-30% more than if they sold the property for the exact same amount as a foreclosure. It is referred to as “first loss is best loss” meaning it is better to lose $100,000 now than $125,000 or more six, nine or twelve months from now. They get it. It’s just business for them as it should be for you.

Think about that for a minute. If Chevron, General Electric or some other large corporation sold off a money losing or underperforming asset, wouldn’t Wall Street reward them with a bump in their stock price? Sure they would. It would be called a good business decision. Well, isn’t your situation the same? Does it make sense to hang on to an underperforming money losing asset? Of course not.

To get a better idea of when your home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation. Call me today and sleep better tonight; you’ll be glad you did