Orange County Foreclosure Short Sales: Who owns the homes after a Short Sale & What happens to the property taxes?

A short sale is treated just like a conventional/traditional sale. The property is first placed on market for the public to see. Then the search begins for a qualified buyer and once that buyer has placed an offer to purchase the home and it is accepted the escrow is opened. Once the escrow process is underway, the necessary inspections are done, and the buyer's loan is preparing to fund and be complete. Once the escrow closes, the new buyers name is recorded as the new owner of the property and possession is transferred.

After the short sale is complete the new buyer becomes the owner of the property in question. At this time the previous owner moves on to a different property and there mortgage is paid off.

Short sales compare to traditional sales in many ways and property taxes are one of them. People always wonder what homeowners are supposed to do with their property taxes if they want to sell their home, short sale or traditional. If you have already paid your property taxes up to a certain date and your property sells and transfers possession before that date comes around, then you are in good shape.

In this scenario the seller or homeowner is only responsible for the taxes of the property until the very day they are the owners and have possession. From then on forward the responsibility transfers over to the buyer.

But if you are late on your property taxes and have not paid them, then we must know about this. Both in a short sale and traditional sale situation. In this case this would affect the short sale negotiation process so being informed on this matter is very important.

Today we have discussed who owns a home after a short sale is complete and what happens to property taxes with a short sale.