Who pays back taxes on a short sale?

In the average short-sale situation, what happens is that the seller’s bank(s) has to direct some of the proceeds of the sale to covering any back taxes on the property, agent commissions, transfer taxes and such before they can apply the rest of the sale price to cover the outstanding mortgage balance(s).

Can a buyer be liable for unpaid water bills?

So it’s quite possible that your buyer could get hit up by the city water department for unpaid water bills and charges prior to the buyer’s ownership of the property.

Is there a special assessment for unpaid water bills?

Typically there are delinquent water bills in a foreclosure/short sale situation, and there may also be a special assessment added to taxes for prior unpaid bills. (My closings this week both had special assessments around $800 PLUS about another $800 in unpaid bills…and about $250 held for the final water bill.)

Can a short sale be done without utilities?

You can still do a short sale, however, you should notify buyers and let them know that the responsibility for turning on utilities falls upon them, even before entering into a contract. Shutting off your utilities in winter may cause water to freeze in the pipes of an unheated property, which can cause pipes to burst and damage the home.

Do you have to pay water bill when selling house?

As an example, however, some water departments will issue a full payment certificate at or close to the time of a sale to show that the water department for the city doesn’t have any outstanding bills against a property.

What happens if there is unpaid water bill when you sell a house?

But if there are unpaid water/sewer bills, the new owner is ultimately responsible because it is tied to the address, not the owner. What happens in a traditional home sale is a final water meter reading is requested shortly before closing.

What happens if you don’t pay your water bill?

Other times, the municipality may sell the debt to an individual investor in a tax lien sale or private company that will tack on high interest and fees, which makes it impossible for most homeowners to pay, and they end up losing their house. A woman in Baltimore lost her home to an investor after failing to pay a $362.28 water bill.

Who is responsible for unpaid water and sewer bills?

Many people don’t realize that water/sewer service is attached to a property address rather than a person. If there are unpaid gas or electric bills after transfer of ownership, the previous owner is still responsible.