Arrears is a legal term for that part of a debt which is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due. The account is then said to be "in arrears". The term is often used in relation to periodically recurring payments such as rent, bills, royalties (or other contractual payments), and child support.
In real estate, sometimes the buyer will be responsible for TAXES in arrears. For example, most Fannie Mae properties require the buyer to pay for the unpaid taxes and the unpaid homeowner association fees. Make SURE your realtor finds out these potential expenses so there are no surprises once your option period has expired!!
Another expense that Fannie Mae often expects the buyer to pick up is the cost of the title policy. To calculate how much this amount will be in TEXAS, you can visit www.greatamtitle.com and click on title policy fees.
Foreclosures can provide a GREAT deal for the homebuyer or investor looking for rental property. Just make sure you do your homework to verify who pays what!
Sonja Patterson RE/MAX Realty Center spatterson1@remax.net http://www.har.com/Spatterson http://www.activerain.com/soldbysonja 13611 Skinner Road, St. 100 Cypress, Texas 77429
Direct: 281.213.8039 Cellular: 713.303.9463
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