Subto Purchase with VA Tax Exemption Seller

[Garrett Crain]

Hello,

I am looking at a subto purchase in Oklahoma. The seller is a veteran and qualifies for a full property tax exemption. Her mortgage statement is escrowed, this escrow pays the insurance only since she is exempt from paying property taxes. If I take over this loan through a subto purchase, does the tax exemption remain in place or would I have to start paying taxes? If the latter is the case, someone clearly would know that a transaction occurred and either escrow taxes in or make me start paying them. Does that mean I would be at a higher risk of the loan being called since the bank would know a transaction happened?

Thank you