One of the most frequently asked questions of short sale experts in the San Diego area is if a distressed homeowner has to pay their unpaid property taxes when they short sale their home. Unpaid property taxes sometimes get confused with tax liens, but they are two completely different things. Tax liens involve the IRS and are not negotiable; property taxes, however, are negotiable.

If you live in San Diego, have unpaid property taxes and want to short sale your home, the answer is no, you do not have to pay back your unpaid property taxes. The taxes on your home are attached to the property and not directly to you, however they hold a first priority lien over everything else when a home is sold (via a traditional or short sale transaction) or foreclosed upon.

If you choose to work with the right short sale expert, they can often negotiate the property taxes in with your short sale offer. Most lenders are willing to pay property taxes in a short sale because they would have to pay them anyways if they were to foreclose on the home. This is also why most banks and lenders prefer to charge you a monthly fee that is added onto your mortgage; they use this additional money to pay the property taxes out of escrow.

If you have any additional questions about unpaid property taxes and how far back most lenders are willing to pay them, we encourage you to contact a San Diego short sale expert. They can provide you with all of the information you are looking for and point you in the right direction should you choose to short sale your home.