Foreclosures Help Information

Posts Tagged ‘Foreclosure Houses’

Government Tax Foreclosure Houses

Question: For foreclosure properties, can you tell me the steps of the process please?

For example, how is it determined whether house is owned by bank or government and whether… and how is it determined whether it goes on the market or to an auction… and where are the auctions held? If back taxes are owed, does the bank pay the city off? I am very curious as to how this process works.

If know any of these answers, will you reply please?

Thanks!

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Answer: Calling an agent is a great idea (I am a broker) but I think what you are looking for are tax sales and sheriff sales. These are typically posted at your local county court house. Go to the court house and ask at the assessment office, or tax claim. One or the other will send you where you want to go.

Financial institutions that hold mortgages on these properties will purchase the properties at auction and then they may put it with your local real estate agent. There are some deals to be had at this level.

Where you have to be careful is if you purchase a property that still has a lien on it meaning you buy it for back taxes but you are also buying the old mortgage too. This can happen at auction.

Good luck, make sure you do your research.

Real Estate Tax Foreclosures

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Bank Foreclosure Houses

Question: How many months could one not pay their mortgage before the bank put the house into foreclosure?

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Answer: Most lenders will send warnings and threats of foreclosure before actually filing, but after 3 missed payments, you can count on the foreclosure process officially starting.

A better question to ask is: " How long can I stay in my house after I stop making my payments?"

This is where things get interesting! Since the lenders and courts are completely swamped with cases, with the right knowledge and the willpower to take advantage of a messed up system, you can stay in your house for years after foreclosure.

In fact, there are several cases where homeowners are suing the lender, keeping the home, and never making another payment again!

Just remember, it's up to the lender to prove that you are in foreclosure and that they have the ability to foreclose on the home. In many cases, the lender/servicer can't provide the court with the proof needed to legally foreclose on the home.

But if you don't dispute this fact, then the court will allow them to continue the foreclosure and you'll eventually be evicted.

California Foreclosure Listings - CA

Tax Foreclosure Houses For Sale

Question: Gift of Equity - do I need to fill out a Gift tax Return?

OK, my parents house was in foreclosure, so I bought it and got a mortgage on it. After a year and a half, they bought it back from me. Part of my sale to them was a "gift of equity" of about $48,000, so that they could obtain a mortgage. Do I need to report this "gift of equity", and if so how? From what I've read, it appears I need to file a gift tax return, but (since this is my first gift, I'm well under the $2,000,000 lifetime limit) I won't need to pay any tax on this. Am I correct in my understanding of this?
Thanks for responses to far! A couple of details for clarification:
1) The house was sold in March, at which time I was single. I was married later that year. Can I split the gift between me and my wife?
2) Technically, only my Mom bought the house, so am I still able to claim part of the gift went to my Dad?
3) Exactly what affect does any of this have on estate taxes (this is the first I've heard of this)?

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Answer: Since your gift was more than $12,000 to each of them, a Gift Tax return is required. The lifetime exclusion amount is $1,000,000 on gifts, not $2,000,000 as it is on estate taxes although it does reduce your estate tax exemption and may have tax consequences when you pass if you use it now to avoid gift taxes on the gift.

Addendum: If the facts at hand support a gift from both you and your wife to your mother and father you can divide it up 4 ways without dipping into your lifetime exclusion amount.

The exclusion amounts for gift taxes and estates are unified. the amounts are different, but using any portion of your unified exclusion for gift taxes will permanently reduce the exclusion available to your estate.

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