Because of the foreclosure crisis, the Internal Revenue Services have decided to
give some relief to home owners that are facing foreclosure to make it easier and
possible to refinance or sell their primary residences.
The Internal Revenue Service is now expediting the “subordination” process for
federal tax liens, now what this means is basically allowing the new mortgage
holder to be in first position and the tax lien would move to second position.
Otherwise, especially in refinance transactions the Tax Lien would have to be
paid in full and released before the home owner would actually refinance. This
move by the internal revenue service is much needed in today’s market, as real
estate values plummet and there is little if any equity left for home owners to
refinance or do a traditional real estate sale.
This new approach by the internal revenue service can sometimes mean the
difference between the home owner and their family losing their home to
foreclosure or refinancing to lower their payments, where the home is now
affordable and they can continue to live there.
Now for home owners that are deciding to sell and move on, can also benefit
from this new IRS program. If a home owner has little or no equity, the tax lien
could be a road block in the selling process, but in this case the internal revenue
service will discharge the tax lien so the sale can be completed.
Now it is important to note that the IRS is not forgiving these back taxes that are
owed by the home owner, but instead they are no longer requiring that these
federal tax liens be paid off before the property is refinanced or sold. The IRS
now understands the concept that bad things happen to good people, as this
program was developed to help home owners that have a history of paying their
taxes on time and in full, but have found themselves in a predicament because of
the current economy.
Another great program from the Internal Revenue Service is the Mortgage
Forgiveness Debt Relief Act, which was enacted in 2007. This act only applied
to primary residences, but it makes home owners exempt from paying taxes on
“forgiven debt.” Now this is especially important as most home owners that need
to sell in today’s market will have to do a short sale and if they cant sell, then
they will end up in foreclosure. Either one of these cases will present the home
owner with a significant amount of forgiven debt, in excess of $100,000. Most
home owners that are in this situation are not even use to paying taxes on
anywhere near this amount, but more closer to 30,000 – 40,000. So a short sale
or foreclosure could create significant debt for home owners, but not anymore,
thanks to the Mortgage Forgiveness Debt Relief Act. I do recommend that you
speak to your tax advisor, as everyone situation is different.
Watch the video related to home owner
On December 30th 2009, after 6 months of BS, I finally completed the closing for the purchase of my first house. So the next day I took the camera with me and took a walk though of MY house. She’s gonna need some work, that’s for sure, but hey it was cheap (and cheap was all I could afford!)
Help answer the question about home owner
Do you think this is a good idea for a home owner's club?We help decorate eachother's houses by taking turns to go to a friend's house and paint and decorate a room. The home owner recipient buys all materials of course and has drinks and food and provides a nice lunch for everybody. We play music and socialize as we work. I was thinking more for an all ladies club.
Any suggestions on getting it off the ground. How can I get my friends to go for it? Most of them live in rentals. Should I try to make new friends online or some other way to start my club?
On the section of the bankruptcy petition called "Statement of Financal Affairs" you must list off:
#10. All property sold or transfered within the past 2 years.
#7. All gifts made to individuals > $200 within the past 1 year.
Or as Ricky use to say "Lucy! You've got some esplainin' to do
Go meet with an attorney and find out the practical application of your state's Homeowner's exemption rules.
You'll find that either:
1. The equity your so worried about is exempt (you get to keep).
2. Unexempt, but hardly enough to attempt to liquidate (after realtors, closing costs, etc).
3. You're limited to Ch13 repayment to protect your asset.
I too own 100% and if it helps the age bracket is..well…over the age of 60 if that helps you any.
Added
I totally agree with George G's assessment. People now want 40 year mortgages, nothing down, and even interest only for a few years.
My home has been paid off for many years, I took on a 15 year mortgage with high interest rates and paid it off in 9 years. How? Because I could COMFORTABLY afford the house.
First and foremost: GET RENTAL INSURANCE!!! I can't suggest this enough. So many things will be covered by it and it is super affordable. Don't hesitate or wait to do this….
I also think it is important to consider the average monthly utility bills…sometimes due to how old or well constructed and maintained the cost to keep the house cool and warm, and generally running can be greatly impacted. Unless money is of no concern, I'd see if you can find this out to make sure you won't extend your budget.
Also..have you determined who is in charge of maintaining the yard/snow removal? If it is you, are they supplying the tools? Do they care if you paint? If so, who pays? Do they prefer you contact them for emergency repairs, or you have discretion to contact a professional and be reimbursed?
These are all things that ended up being issues for me when I was a renter. I am most thankful I got rental insurance above all else though.
Thanks.
Absolutely. The foundation will have to be designed for the neccessary loads ( this may mean deeper, wider footings, additional reinforcement, larger beams and/or larger floor trusses) but the crawlspace foundation can be used for multi-story projects no problem. Its important to remember that with any foundation, the weight of the structure should bear directly on or be transferred to the footings-whether crawlspace or slab.
sooo, kind to share, thank you! ill be watching
First, I am going to have to research this about Colorado…to answer your question from my views, no, it is wrong to tell anyone what they can or can't do in their own homes! I bought a half of duplex and we do have homes assoc. but I will never be told what to do in my own house…I am also a taxpayer! The witch hunt on this Smoking Ban has gotten out of hand! Citizens are going to have to stand up and be counted…whether you smoke or not, it is not the real issue..it is the gov't and their under-classmen who have decided to start and approve some of these absolutely wrong laws. What's next? How many kids you are allowed to have? How much you can drive your car? We are allowing all the commercials on TV which endorse all the "call your doctor for a RX" and all of the medical ones that are trying to get people hooked on prescription drugs! I hope everyone wakes up and sees what it is doing to our country. We have gotten away from the greatness that this country was built on…Back to the question…I don't see how they can ban owners from smoking in their own condo…I quess they would be buying mine back for a hefty price…I can't believe that this was ruled admissable in the court system. Isn't Colorado, the same state that is banning smoking but also trying to legalize pot? Go figure…wierd…I'll be anxious to hear all the answers. Great question!
No, what your lender is saying that you need a home
owners policy or binder on the home that you are going to buy. You obviously have already signed a contract, and doing the process of setting up the closing, you have to furnish them at least a binder, that will tell them that you have coverage once the loan is closed and the house is yours. They will collect the amount for one year, plus about two months to establish your escrow account to ensure that when the insurance policy comes up for renewal that there will be enough funds to cover the renewal cost, which generally will go up a little bit. This is why they charge a full year plus a couple of months. Just give your agent the description of the house or a copy of the appraisal and they can do the rest for you. Your broker/lender will then accept a faxed copy, and the original policy can be furnished at the closing. Your mortgage originator or loan officer should have explained all this to you. If you aren't going to have an escrow, then you will just furnish a paid in full for one year home owners policy at the closing, but again the lender/broker will need at least a binder of proof and the cost prior to sending out the closing package to the attorney for final closing of the transaction.
What about suing the inspection company for not catching it?
I don't think you will have a case with this one…no facts, just assumption. Can whomever that found the leak inside the wall prove the a/c was filled to pass the inspection?
Can this type of foundation suppory more than two storey, , ,ground floor,1st floor + another floor , ,ie , ,2nd floor?
State Farm. It was the most expensive when I quoted it out, but gave us the broadest coverage.
That means NOTHING. Because not all companies are competitive in all states, and MOST companies don't write in all states.
Lets say your house sells for 300K(and has a 220K mortgage). Lets say your buyer has 30K for a downpayment.
They get a loan for 240K and get the second loan from you for 30K. The 270K from the buyer is first applied to your mortgage and you would get 50K in cash at closing.
You should have a lawyer draw up and help you with recording the mortgage. The lender for the buyer needs to know the details of your arrangement.
What about a foundation drain? What is the approved drainage system? That is THE MOST IMPORTANT part of the crawlspace!
this is so helpful! my husband and i are in the process of buying a house and i didnt know wat was the difference between a slab and crawlspace!! thank you soo much!!