When the bank accepts a short sale and we close, what happens to the taxes that were owed?
I owed $ 300,00.00 and the bank accepted $ 65,000.00 at the closing, do I end up down the road paying the difference. They said no but I don't know if this will end up in a boiler room filled with laywers hired by the bank to go after all there short sales?
You are liable for the property taxes that accrued while you own the property. However, the taxes remain a lien on the property even after the sale if not satisfied. The new owner takes the property subject to the taxes due.