I was just wondering how do you handle back taxes? In WA. state this can get really expensive. You did not address the back taxes on your hud-1 in your course.
I also would like to know how would you handle the transfer tax if it was 1.78% of the sale? Median home prices in my area is a little over 200k. So that is 3500.
What happens if the deal falls through? If I cannot get a buyer fast enough to do a double close what escrow and closing fee I will be responsible for up to that point If I am not able to buy?
Lonnie Turner
If they’re back property taxes, they WILL show unpaid on the title report and therefore will have to be paid. That represents a lien.
If you can’t find a buyer in time you lose nothing. You pay nothing. The only thing you’ve lost is your time. So you have to make a decision. Let it go to auction. Or get some private funding if it’s worth it and buy it yourself. You would be responsible for the back taxes. Ever heard of a tax-sale auction? There are some states where you can literally buy a home for just the back taxes. Obviously they are class C properties, meaning they usually need a lot of work. The county just wants to get paid. Just make sure your profits out-weigh any costs you will incur. Also, the lender just wants to know how much they will net from the deal. Do not try to make them pay closing costs.