Posted on: 25th Apr, 2011 02:56 pm
i declared bankruptcy last year (2010). i received my discharge letter about a month ago so i am free and clear. it was a chapter 7 which i declared because i had some bad real estate in florida. now that my bankruptcy is discharged, the banks are willing to give me cash to do a deed in lieu of foreclosure.
i tried to ask my bankruptcy attorney about it, but frankly she is about as helpful as a bag of bricks, and just as friendly to boot. that's what i get for hiring a former judge. anyway, i couldn't even get her to tell me what kind of attorney i need to speak to about whether or not i should do this.
should i do the deed in lieu? will i get a tax liability if i do this?
can someone please tell me what kind of attorney i need to call?
...or suggest an attorney they personally used?
thanks,
- j
i tried to ask my bankruptcy attorney about it, but frankly she is about as helpful as a bag of bricks, and just as friendly to boot. that's what i get for hiring a former judge. anyway, i couldn't even get her to tell me what kind of attorney i need to speak to about whether or not i should do this.
should i do the deed in lieu? will i get a tax liability if i do this?
can someone please tell me what kind of attorney i need to call?
...or suggest an attorney they personally used?
thanks,
- j
Hi la_jmd!
Welcome to forums!
As you want to get rid of the property, you can go for a deed in lieu of foreclosure. You should contact the lender in order to get a deed in lieu of foreclosure. As the debts will be forgiven, you might be liable for paying taxes. But I will suggest you to have a word with a CPA in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you want to get rid of the property, you can go for a deed in lieu of foreclosure. You should contact the lender in order to get a deed in lieu of foreclosure. As the debts will be forgiven, you might be liable for paying taxes. But I will suggest you to have a word with a CPA in this regard.
Feel free to ask if you've further queries.
Sussane
Susanne,
Thank you for your response.
So, I am trying to avoid paying taxes on the property. What I am afraid of, if I understand you and from some research online, is that if I do a Deed in Lieu, there cannot be any liens on the property including tax liens. If I do the Deed in Lieu, I will have to pay off any outstanding taxes. Currently, there could be as much as 2K in tax liens on the property..
...However, if I let the property go into foreclosure I don't have to worry about any of that because the tax liability goes with the property and I can walk away clean.
Is this a correct assessment?
Thank you,
- J
Thank you for your response.
So, I am trying to avoid paying taxes on the property. What I am afraid of, if I understand you and from some research online, is that if I do a Deed in Lieu, there cannot be any liens on the property including tax liens. If I do the Deed in Lieu, I will have to pay off any outstanding taxes. Currently, there could be as much as 2K in tax liens on the property..
...However, if I let the property go into foreclosure I don't have to worry about any of that because the tax liability goes with the property and I can walk away clean.
Is this a correct assessment?
Thank you,
- J
As far as I know, the lender may ask you to pay off the taxes if you go for a normal foreclosure. You may have a word with your lender in this matter and then take the decision.
La_jmd, I am a foreclosure specialist. If you need help with this and want some help, let me know. I can help you. Here is a website to visit. It isnt quite the right website for you, but will enable me to get your information so we can talk and figure out solutions.
Hope to talk to you soon.
Doug
[URL Deleted as per forum rules. Thanks.]
Hope to talk to you soon.
Doug
[URL Deleted as per forum rules. Thanks.]