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#2258180 - 08/12/21 10:11 PM Delinquent Property Taxes- Loan decision
M&M Offline
Platinum Poster
Joined: Nov 2003
Posts: 527
Midwest
Would past due property taxes be considered an underwriting or creditworthiness condition or a customary commitment or closing condition? I need to determine how we would decision a loan application where everything else is approved; however, the property taxes are past due and remain unpaid. Would this situation be classified as a "denied" or "approved not accepted" application?

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#2258222 - 08/13/21 06:31 PM Re: Delinquent Property Taxes- Loan decision M&M
Oursisnottoreasonwhy Offline
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Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 473
Central Illinois
Are you going to require Escrow on the new loan?

If no escrow, are you going to then deny because there property taxes are past due and that would be considered being in default if the new loan were made?

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#2258236 - 08/15/21 12:33 AM Re: Delinquent Property Taxes- Loan decision M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 76,988
Galveston, TX
Customary commitment or closing conditions include, for example: a clear-title requirement, an acceptable property survey, acceptable title insurance binder,.............

You might want to consider you are unlikely to be able to get acceptable title insurance as past due taxes in many states would represent a superior lien on the property.
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