The facts:   Seller entered contract for energy products; i.e. windows, A/C unit under HERO program in April  2017.  Total amount of  $15,279.00 plus interest . The program requires yearly payments via property taxes.  Meaning it is on the tax roll and is recorded as a Tax Assessment for the next 25 years starting 2018.

Buyer submitted offer and requiring that the lien be paid and cleared.

Would short sale lender be required to pay it?

Also..Seller not eligible for relocation assistance

Tony Morales

TM Short Sales Consulting

             

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The question is -- 1) Does the documentation state that it has to be paid on transfer of the property? 2) Is the Title company requiring it to be paid to give clear title?

No documentation states that.   It is automatically transferred to new buyer as it is a yearly property tax.  and not an issue with title company

From my understanding and experience, HERO liens have to be paid in full or just take the property subject-to the HERO lien  since those payments are backed into taxes. This is how it is in CA from my experience. Hero liens on a SS are a curve ball for sure. Don't expect the servicer to allot money towards it and if they pay anything towards it I'd consider it a blessing.

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Brett some HERO loans have to be paid as they stay in 1st position so extremely difficult for buyer to get financing.  With a standard sale most sellers have to pay it . But this is a tax. I have explained to the buyer's agent that the short sale lender pays delinquent taxes, not future taxes.  FHA and VA do allow financing with HERO tax lien so the buyer has to qualify for higher mortgage payment that basically has 2 taxes on the property. I can't throw a reason at short sale lender to obligate them to pay it.

Based on what you have said I agree with Brett. See if the lender will pay it or part of it. If not the property is going tobe subject to the continuing tax each year. Thus a new buyer will have to pay it.

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