I’m buying a home in IL.
Property taxes are paid in arrears, months after the end of a period. Sept 1st should be the due date for taxes between June-Dec of 2020. Taxes on this home have not been paid for the last 12 months due to what the deadlines are. They are not late on taxes.
If i buy the home, can the seller just not pay taxes, and leave me with them, which i will have to cover at closing? Is that ‘legal’ of them since the bills are not due yet? I believe they are not not necessarily abandoning the taxes but now asking me to provide $4,700 for them to pay their taxes since the appraisal came lower than they wanted and they are taking it a little emotionally.
Or if i close will the county go after them for the dates they owned it, and me after dates i owned it? I am advised the county does not care and whomever owns it on September is liable to pay taxes, and the seller covering taxes for the dates they were there is a normal formality/something we wrote into the offer.
Lastly, this county (Lake County Illinois) provides a $0 property tax rate for 100% disabled veterans (me). Will the county wipe clean taxes i ‘inherit’? It feels like not, because those bills were generated for someone else. Since taxes are paid in arrears, i think this actually means i will apply at the beginning of 2022 so i don’t pay in 2023 (and then over 2022 i will pay 2021 taxes).
Lastly, can i just have my lender not cover taxes in escrow so i don’t have to bring that cash to close? Or do all lenders require past taxes due up front, or does it depend on lender? I figure if the bill is not due until September then if i pay my own tax bill, i don’t have to pay up until Sept otherwise a lender will want it now.