Foreclosure University

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Back Taxes and Such After Foreclosure

by 2 Comments

I was just wondering how do you handle back taxes?  In WA. state this can get really expensive. You did not address the back taxes on your hud-1 in your course.

I also would like to know how would you handle the transfer tax if it was 1.78% of the sale?  Median home prices in my area is a little over 200k. So that is 3500.

What happens if the deal falls through? If I cannot get a buyer fast enough to do a double close what escrow and closing fee I will be responsible for up to that point If I am not able to buy?

Lonnie Turner

Great Foreclosure and Short Sale Course

by 6 Comments

I found your foreclosure and short sale course to be great on the how to of the mechanics of putting a short sale together. A good piece of work for the price.

I do have several questions that I need answer in order to fill comfortable doing the deals from beginning to end. Can you please answer them for me?

1. What would be a good exit strategy if I have horrible credit and no money?

2. If the owner does not want to give me the deed but is willing to sign a “power of Attorney” should i continue with the deal?

3. I only have one company. In your book you are using two companies. what do you recommend if you only have one company and do not want to use a straw Man?

Thank you ver much for any answers to these questions.

Lonnie Turner
Reliablehb@earthlink.net

Negotiating Short Sale with Lender Covered in Your Course?

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Hi,

I am brand new to this and am getting ready to purchase your ‘package’. I was wondering if there is ample information in the course on how to properly negotiate with the lender in a foreclosure?  In other words, do you go into great detail about this in the course material?  Negotiating at this level with ‘skill’ would seem to me to be very key in a person’s success.

Also, in a situation where the loan has already been foreclosed with the lender paying all those expenses, would you have as strong of a bargaining position?

Please let me know as soon as possible since I am wanting to buy the material you are offering.

Thanks!
Tom

Non-Judicial Timeline

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In an non-judicial foreclosure, can the homeowner redeem themselves up to the time of the court sale?  If not, how can you find these properties while the homeowner is still in a “redemption period”?

 

Answer:  

 

Typically in a non-judicial – trust deed state, you can reinstate the loan up to the time of auction. However this doesn’t happen very often because there are so many late fees, attorney fees, and so on attached to the property now that it doesn’t make sense to reinstate the loan unless there is so much equity in the property to justify this.

Foreclosure with Tenants

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I’ve recently lost my job (2nd time in 3 years) and its making it hard to keep my house. I had to move from Indiana (where house is located) for a job, but couldn’t sell it (too much owed for what worth). I have tenants in the house, but I still lose money every month. Its come to the point that I can’t afford it and I simply want to let it go.

I’ve attempted several times to reach my mortgage company’s hardship department via fax (their only method of communicating with them) and they have not called me back.

What happens if they foreclose on the house while I have tenants in there? I don’t want that house at all, but its much better than going through BK. Your input is appreciated.

Short Sale Tax Liability to Seller

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Several years ago i had property go back to the lender..my debt was 150K…
the back accepted an offer from an investor for 125K …the following
January i rec’d a form 1099 from the bank showing a “charge off” of 25K ..which is treated as ordinary income…i was’nt expecting this….

Now fast forward to now.. i have a deal working to get a short sale accepted to save this seller from foreclosure and give him a little moving cash…  Seller thinks all is well and i’m a great guy till next Jan. when he gets a 1099-c for income he’s never seen..

QUESTION?…do i tell him in writing up front that there could be tax liabilities and risk the chance of losing the deal?

Suggestions? comments?

Answer:

Absolutely without question you tell them they will be receiving a 1099 for the amount that was forgiven.  The tax liability would be worse if it wasn’t for you, right?  They are either going to 1099 them or file a judgment ANYWAY… Regardless of what you do!  You are actually bettering their situation.

This is a common concern for most investors, however there is a solution. There is a form the IRS puts out that counter acts a 1099. You can find it on www.irs.gov. It is form 982. Yes, you should always disclose to the seller the risks involved, but your main concern is a deficiency judgment now.

You need to read the Short Sale Secrets ebook that I have, it would help you tons…