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  A.W. November 18, 2012 at 11:25am

  I got my approval pretty quick (actually within a couple of days) after submitting my offer.  Did you run a second title report and was there substantial tax's owed that did not show up before?  I just closed a short sale and the original Pre-Hud did not show any tax's owed and no liens and I think that is why they jumped on it and got my approval quick.  Well can you believe this, I was surprised when my title company ran the final HUD report 3 days before closing and found outstanding tax's and 2 liens from the seller and I ask them how was this possible and all they could say it that these things will happen.  Of course the weekend was here so you can imagine my frustration. My title company was able to perform a miracle and get the releases over night from the companies that filed the liens.  Though,I got dinged with the costs of the $418.00 of taxes which was deducted out of my commissions to be able to close because BOFA did not want to approve the adjustment costs on the final HUD to include this expense. Either the tax payments are not being sent on time to the county recorders (even when the tax's are included in the mortgage payments) or the county is just falling behind with their processing.  Unfortunatley, when submitting the first Pre-Hud statement the banks generally ask from you at the initiate of a the short sale has already been processed, that is the one the bank will ultimately stick with. This had never happened to me before, but I know now to go to the county first and ask them to make sure they are current on the billing of that particular short sale address before I have the escrow company run the title and submit to the bank. The current owner was not willing to fork out a penny more (he hated the bank at this point) and I did not think it was fair to go back to the buyer to cover this. I just thank god that my commission was pretty decent that I could manage a contribution.  Anyway, I really think that the banks are wanting files that have the least expenses to deal with.  Therefore, the less expenses (including tax's) asked of the bank the more success you will have at closing your short sale.  I think it is an issue that needs to be address with your buyer at the begining of an offer to see if they are willing to help cover if it comes up later.
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  Odalis Hernandez November 15, 2012 at 11:59am

  Thank you for the information.
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  Jeff Payne November 15, 2012 at 9:21am

  How was the underwriter able to issue clear title without the back taxes being paid?  I assume you are referring to 2011 taxes and back?  2012 taxes were not due at the time so they could not be paid.   This in my opinion still falls back on the closer to pay the taxes and if it was not on the HUD, it goes back to the agent that negotiated the short sale
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  Odalis Hernandez November 15, 2012 at 7:38am

  Yes, we prorated the taxes for this year that is not the problem, what was not paid was the back taxes owed from when the seller was not paying for his dues the taxes had to have been paid by the bank normally. I have done probably about 10 short sales and all of them the bank has automatically paid for the taxes that the sellers owes.
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  Jeff Payne November 15, 2012 at 7:26am

  If you are the closing agent, you would have prorated the taxes, collected from the seller and most likely that late in the year, you would have collected from the buyer and paid the taxes this month.  Did you collect the money?  If not, most likely it falls back on you to pay.  If not, the buyer is going to be on the hook for the taxes
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  Odalis Hernandez November 15, 2012 at 6:50am

  I am a Closing agent for an attorneys office, we do Foreclosures, and Short Sales.  We Closed on September 28,2012. On the HUD there was a portion real estate taxes, but some how it did not save the amount. Which I know that is a huge problem, but the bank (Real Time Resolutions) had agree to pay.
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  Jeff Payne November 15, 2012 at 6:34am

  Far too little information... let's figure this out.

  Are you an agent? Seller? Buyer?

  When did the short sale close?
  Was there a proration on the HUD-1 for real estate taxes?