RE TAXES IN SHORT SALES
BANK AGREES TO SHORT SALE. CLIENT OWES YEARS WORTH OF PROPERTY TAXES. THE TAXES ARE PAID OUT OF THE BANK'S PROCEEDS IN THE SALE, BUT ARE SHOWN AS EXPENSES TO THE SELLER (MY CLIENT).
THE PAID PROPERTY TAXES INCREASE THE COD THAT THE BANK REPORTS AGAINST MY CLIENT BECAUSE ESCROW HAS LESS PROCEEDS TO APPLY TO THE LOAN.
I FEEL FUNNY GIVING THE CLIENT CREDIT FOR THESE PROPERTY TAXES THAT THEY DIDN'T REALLY PAY, BUT THE CLOSING STATEMENT GIVES THEM CREDIT FOR THEM.
DOES THE ASTUTE LACERTE COMMUNITY AGREE THAT THE CLIENT GETS CREDIT FOR THESE TAXES THAT ESCROW SAYS THEY PAID, BUT REALLY THE BANK PAID OUT OF THE LOAN THEY AGREED TO TAKE SHORT PAYMENT OF?
