Pre-foreclosure / Property Taxes
Hi all, I have a problem. I have a homeowner facing foreclosure and she is behind 26K property taxes. She has 42K in equity. Besides trying to do a short sale with the lender, what else can I do about the enormous taxes that she owes. Theres no way I can close with the outstanding taxes due. Any advice is helpful.
Thanks :-?
Unfortunately, with 42k in equity, and 26k in taxes, that leaves only a 16k spread. I've taken deals that turned out to be only 16k spread, but only because I made a mistake in value.
If this is just another deal to you, I would walk away and recommend that she try and sell the property on the open market to someone who will occupy the property.
If you are personally involved (friend/family), then that is a tough one. Maybe try to sell the house on the market and have the taxes paid out of escrow. Sometimes back taxes have to be paid cash though at the county offices.
Depending on what the house is really worth, she might be able to cash out a few K in equity, but more than likely she will just be getting out of the debt and saving herself from foreclosure or bankruptcy or both.
Good luck!
Thanks for the reply, she will be filing a chapter 7.
I doubt that there is any way to short sale uncle sam.
What is the situation on the mortgages and/or other liens on the property?