back taxes

[Chris Kelly]

Hello BP members, 

I recently acquired by foreclosure property that has about 5 years of back taxes. I know I will be paying those taxes at closing. I am fine paying the principle but I was wondering if anyone has ever gone to the city hall and negotiated the years of accumulated interested on the taxes. 

Thank you very much for your help. I am interested to see what people have done in similar situations. 

Chris

[Jack Butala]

@Chris Kelly

Great question, Chris. This is the absolute correct attitude to have in this business.

About half of the time the answer is yes on a tax reduction.  My experience is that there are a few components to a tax bill this aged.

Principle, Fees and Interest (if its in tax lien status).

Some times you can get the fees removed entirely if you pay the full amount just for asking.

If you want to take it further, ask the treasurer (the actual treasurer, not another person in that office) this question "If I bring this up at the next Board of Supervisors meeting, is there a shot they will reduce the principle? Has the ever happened before? Is there a form I can fill out and present to them?"

Remember this: They want that property back on the tax rolls. They don't care about fees or interest or paying that game. Most counties look at back taxes as a thorn in their side.

Hope this helps. Good luck.