Wondering what my options are here. I am going to check to see how much money the seller has escrowed for taxes this year. I assume not much. I wonder if the amount in escrow could be applied to the tax amount due??? She is being offered a $1000 incentive at closing. I wonder if the $1000 could be applied to the tax amount due??? The BPO came in $7000 LOWER than my accepted offer. [:-)  I wonder if I could amendment the offer to have the buyer pay for the taxes at closing. Thoughts?

Views: 480

Replies to This Discussion

The Seller could use the $1000 any way they want, no way they couldn't use it to pay off the tax amount due. If the Buyer wants the property they may be willing to pay the taxes due. On one of my short sales, the Seller had a $50,000 private lien and I got them to accept $10,000 to release and had the Buyer pay it through escrow. Hope it works out for you.

Confused...is the seller being asked to pay them?  When the HUD was submitted for approval these should have been included.  The short sale lender usually picks these up as seller's closing costs.

Jennifer,

Since it is an FHA short sale, the taxes are escrowed and paid each year.  All that should be owed are the prorated 2013 taxes. HUD allows the taxes to be paid from the proceeds of the sale - and will approve a contract as long as the net proceeds from the sale exceed the minimum net proceeds required.  You should have received an ATP from the lender (by the way, who is the lender) telling you what the minimum net proceeds are.  Hopefully, when you turned in your preliminary HUD along with the contract to the short sale lender, you had the prorated taxes included. The seller should not have to reduce the incentive that they are receiving (1000.00) if the HUD was done correctly and the net proceeds from the sale are more that the required minimum net proceeds.  Your email says that the BPO ( actually should probably be an appraisal) came in7K lower than you accepted offer. I would expect in this case that the net proceeds from the sale exceed the required minimum net proceeds with all of the allowable closing costs (including property taxes) factored in.

This is a Wells Fargo/FHA. Wells Fargo would never let me upload the offer or the HUD. Wells said I had to wait until the FHA approval to participate was granted. The approval to participate letter stated the seller/home owner must pay the prorated tax amount aka this year's taxes. Yes there is lots of wiggle room between the required "net" amount of $72,160 and "net" amount on the HUD. According to the comments below my seller/home owner should be okay because of this and should be able to keep the incentive. I will keep you posted! I finally get to upload the offer and the HUD. Thanks everyone for your feedback!  

ALLOWABLE COSTS 

 County Taxes

 Property Tax
 Real Estate Taxes to Closing Date

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14627.pdf

They will pay the taxes.

Approval letter came in. Taxes are being paid for along with the water and a 6% commission for "in-house" transaction.  Deficiency rights waived, no promissory note, seller still gets incentive at closing. Success yet again. I have to WF is much more picky than pre-equator days or it could have been because it was FHA.

 

I just got this approval as I received an accepted offer on another WF short sale listing of mine. The fun continues!

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************