When we are assigned an asset - at the very beginning, there is a "task" to get Tax Information with regard to the specific asset we are assigned.  There are several ways in which to do this.  However, our experience has shown, that going directly to our Title Representative proves to be the most timely.

We can visit the Tax Assessors website for the County that the property is within, but that does not usually give us the intel on any Liens that have been recorded against the home, condo or townhome.

Liens can come in many different forms.  They could stem from issues that have their origins from contractors, landscapers, service providers and bill collectors.  Home Owners Associations are also some of the most likely sources of Real Estate property Liens.

The most accurate form of verification regarding liens is to have a "preliminary title" report pulled.  This is a "hands on" type search and is part of the escrow fee's that both the buyers and sellers are paying.  However, the Asset Manager wants an idea before we get into escrow.  Again, the Local Title Company, or the Title company with the bank, can provide this for you.

Here is the tax information that is usually asked for from the Asset Managers or Management companies that handle Real Estate Owned properties. Feel Free to copy this list and let us know if we can assist you with your Real Estate Owned and Foreclosure Properties.

Asset manager tasks for bank owned foreclosuresThere are many different inquires that have to happen.  You will see that it is started by a requesting of "county" name.  In our neck of the woods, we have Los Angeles, Ventura and Orange Counties.

The Next Field is Parcel Number. Each county has a different format for the Assessors Parcel number and they usually consist of a Map Book, Plot Number, Page, and other identifying factors.

Tax Contact has to do with what section of the Local Government needs to be contacted for verification of amounts.  Such as the Los Angeles County Tax Collector - Collection Division.

The next field to the left, Tax Year, Tax Due, Penalties and Interest, with the Sub Total Amounts are self explanatory.  Below, we have the date which these "pay off" amounts  are good through.

Additional notes can have do to with how the information was obtained, so the Asset Manager or Management Company have a point of reference before reaching out.

Third Party Liens - I spoke about this above.  A title company is the best place to get this information.  However, short of pulling a Preliminary Title report, the information received could be a bit dated.

What is the interest rate and how often is it added: Depending on how late the taxes are and the specific county, will depend on the interest rate and whether it is compounded or not.  The Specific county, and their hunger, will also depend on the starting rate of the interest and penalties.

Tax Sale? It takes quite a long time in Los Angeles County, Ventura county and Orange county before a property goes to a Tax Sale.  Usually the mortgage holder (the bank or owner) will make the taxes current before the home, condo or town-home go to a tax sale.

And of course, payment. Where does the Asset Owner mail the check to in order to catch up the back taxes.

What did you think of this explanation?  Are you a REO agent or Asset Manager and have some points of clarification, Please comment below so we can all grow stronger by the sharing.