If I short sell my home, will I have to pay the property taxes that are in arrears?

No, when you short sale your house, you won’t be expected or asked to pay the San Diego property taxes.

This is one of the costs that the lender will pay in the course of the short sale.

Property taxes are a first lien and have to be paid – whether the homeowner does a short sale or the bank forecloses. They can’t be negotiated away.

The fact that they are a first lien is why most lenders require home buyers to agree to setting up an escrow account as part of the monthly mortgage payment. When homeowners deposit 1/12 of the taxes each month along with their mortgage payment, the money is there when the tax bill is due. And, when the bank mails the payment, they know it’s been done. Most also want to collect monthly for homeowner’s insurance, in order to assure that “their asset” is covered.

We have not yet run into a San Diego short sale in which the bank required the homeowner to pay the property taxes – even if they were 2 or 3 years in arrears.

If you’ve already fallen behind, there’s a very good reason to call us today.

  • We have a 98% success record in successfully closing our San Diego area short sales. But even we can’t help if you wait until the week before a foreclosure becomes final.

If you’re in distress over a home in Carlsbad, Coronado, La Jolla, Rancho Bernardo, North County, Del Mar, Mission Hills, Kensington, Metro San Diego, or downtown San Diego, we can help you short sale your house and avoid foreclosure.

To reach us, call 619-929-1413 or write td@tomdunlap.com. We’ll be happy to answer all your questions and to explain the short sale process.

Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.