Dear Michael: I have not paid my property taxes in over three years. If I decide to sell my home how will my property taxes be paid?
Answer: If you have not paid your taxes in more than three years, chances are, the City Assessor’s has a placed a tax lien on your home. You will first need to find out how much you owe in back taxes including penalties and late fees. Escrow can give you an estimated closing statement so you can have a better idea of how much you stand to net after the sale. If you have equity on your home, then escrow will pay off your taxes owed through your sales proceeds. If you have no equity on your home, you may want to consider a “short sale”. If a short sale is your option contact your rrealtor and let him/ her walk you through the process. A short sale is a very good option to settle your debt.
Dear Michael: My home is in escrow but did not appraise. The buyer now wants to do a 2nd appraisal. How can we move forward without an appraisal? We really like the buyer and would hate to see him loose the house.
Answer: You can’t! If your buyer is getting a loan he will need to have the property appraised. Second appraisals are called “appraisal review” which, are common when properties don’t appraise but generally don’t change the outcome of the 1st appraisal. If your buyer can’t have the property appraised at the selling price and you are willing to continue the purchase with him, then I suggest you extend the escrow period. You can ask your buyer re-start the loan process with a different lender as this will generate a new appraisal. If you go this route expect your escrow to be extended approximately three weeks. Your other option is to cancel your purchase agreement with the current buyer and put your property back on the market. Only problem the same scenario may happen again and the buyer may not be as easy as your current one. I recommend you give your current buyer another chance. Keep in mind the appraisal is out of the buyer’s control!
Dear Michael: I have received my annual Property tax bill. I am not clear as to when it is due?
Answer: Annual property tax bills are mailed in early October of each year. The bill is payable in two installments: The 1st installment is due on November 1st and is delinquent if the payment is not received by 5 p.m. or postmarked by December 10. A 10 percent penalty is assessed for delinquent payments. The 2nd installment is due on February 1st and is delinquent if the payment is not received by 5 p.m. or postmarked by April 10th. If late, a 10 percent penalty and $10 cost fee are assessed. If December 10 or April 10 falls on a weekend or a legal holiday, the delinquency date is the next business day. Both installments can be paid at the same time. If you choose to pay both installments in one payment, make sure you include the first and second installment stubs with your payment.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390- 3337 or e-mail them to him at: homes@agentmichael.com.