I bought a property subject to An there is 30 days

2 Replies

What’s the best way to handle the taxes on a property I just purchased. I’ve heard of tax lenders, but don’t have equity in property it was a “subject to” deal.

Anyone can point me into a tax solution.

@Khalil Hakim

If it was Subject To, then that means there is still an existing mortgage in place. You pay the owner your agreed upon monthly payment, the owner pays their mortgage, and the bank pays the taxes out of escrow as normal.

If the owner was paying the taxes manually, you need to find out if the owner is still going to do that going forward. That should have been discussed when you did the Subject To.

Originally posted by @Christopher Phillips :

@Khalil Hakim

If it was Subject To, then that means there is still an existing mortgage in place. You pay the owner your agreed upon monthly payment, the owner pays their mortgage, and the bank pays the taxes out of escrow as normal.

If the owner was paying the taxes manually, you need to find out if the owner is still going to do that going forward. That should have been discussed when you did the Subject To.

 That assumes its an escrowed loan. Agreed that it should have been discussed and finished in the purchase agreement. This is where the lender catches on if the taxes go delinquent and accelerates the note and calls the balance due usually. The bank will pay the taxes regardless to protect their lien (If taxes are delinquent and not escrowed) but chances are , that they'll accelerate the note for the illegal transfer.

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