Note buyer? I am selling a real estate note. I just found out that the payor has let the property taxes go delinquent...

I called the county tax office and they told me that the people I sold my house to have not
paid the real estate property taxes for the last two years.

They owe $1,603 in delinquent taxes.

I want to sell my real estate contract now. Is this going to be an issue?

A: Yes.

I am happy to buy a real estate note, but I do need the property taxes and insurance to be current and up to date.

(Many note holders forget to verify that their borrowers maintain hazard insurance on the buildings)

There are three ways to handle the purchase and sale of your real estate note when the payor has delinquent taxes owing on the property:
1. Contact your borrower and tell him to get in to the county asap, and pay the taxes.
2. You can pay the taxes and then have your borrower re-imburse you.
3. I can buy your note and pay the taxes out of the note proceeds and then you can seek re-imbursement from your payor.

Bottom line: I have to have the property taxes current at the point I buy your note.

It is certainly worth a phone call once or twice a year to the county treasurer and the insurance broker to verify that your payor is keeping up to date on property taxes and insurance.

Looking for the best price on selling your real estate contract?