Posted on: 28th Jun, 2007 12:14 pm
i have a rental property that i am unable to make payments on, it is currently vacant. the mortgage company will not negotiate a deed in lieu of foreclosure so i am forced to let it go through foreclosure. the house is not worth what is owed. owe 63, 000. it recently appraised for 53, 000. what are the tax ramifications of the foreclosure for me and can the mortgage company file for a deficiency judgement? i live in the state of ohio.
One of my properties is going into foreclosure. Can the lender go after my other property(also in Florida) to satisfy the debt? How can I avoid if this is the case?
Hi Doctor M!
Welcome to forums!
After foreclosure, you would be responsible for the deficient amount resulting from the sale of the property. If you can pay off the deficient amount, then the lender would not come after your other property. If you're unable to make the payments, then the lender may place a lien on your other property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
After foreclosure, you would be responsible for the deficient amount resulting from the sale of the property. If you can pay off the deficient amount, then the lender would not come after your other property. If you're unable to make the payments, then the lender may place a lien on your other property.
Feel free to ask if you've further queries.
Sussane
I had been paying on a piece of land in NC for almost 3 years. I bought it at 80K. Even though I had lost my job I continued to always make my payments on time. The loan was close to baloon so I tried to restructure loan. But the bank would not work with me at all. No bank would on vacant land. I have tried to short sale it and nothing. Now it goes into foreclosure and my perfect 820 beacon is ruined. Will I have to pay this money, the amount owed is 64K?
Hi Tera,
If the property is foreclosed by the lender, then you would be responsible to pay off the delinquent amount resulting from the sale of the property to the lender. If you're unable to do so, the lender would send it to collections.
Thanks
If the property is foreclosed by the lender, then you would be responsible to pay off the delinquent amount resulting from the sale of the property to the lender. If you're unable to do so, the lender would send it to collections.
Thanks
What can happen to house in mass. Used as collateral primary house with existing mortgage. Fla property is a llc
Hi jake,
Are you unable to pay off the loan? If you stop paying the dues, the lender will start foreclosure proceedings. If you want to get rid of the property, then you'll have to go for a deed in lieu of foreclosure and sell it off. However, it will affect your credit report and lower your score by 250 points.
Thanks
Are you unable to pay off the loan? If you stop paying the dues, the lender will start foreclosure proceedings. If you want to get rid of the property, then you'll have to go for a deed in lieu of foreclosure and sell it off. However, it will affect your credit report and lower your score by 250 points.
Thanks
I have a property in foreclosure that is not my primary residence can they touch my other assets when it forecloses? such cd's bank accounts etc?
Hi Holly!
Welcome to forums!
You will be liable for paying the deficient balance resulting from the sale of the property at the foreclosure auction. If the lender does not receive the payments, he can place a lien on your primary property or can garnish your bank account or wages.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will be liable for paying the deficient balance resulting from the sale of the property at the foreclosure auction. If the lender does not receive the payments, he can place a lien on your primary property or can garnish your bank account or wages.
Feel free to ask if you've further queries.
Sussane
In Arizona do you have to pay taxes on the difference the bank gets on a foreclosure property.
Hi S Lee,
The lender can come after you for the deficient balance resulting from the sale of the property in Arizona. If he forgives the dues, then the IRS will consider that as your income and you will be liable for the taxes. However, if the Mortgage Debt Relief Act is active in your state, then you may not have to pay the taxes.
Take care.
The lender can come after you for the deficient balance resulting from the sale of the property in Arizona. If he forgives the dues, then the IRS will consider that as your income and you will be liable for the taxes. However, if the Mortgage Debt Relief Act is active in your state, then you may not have to pay the taxes.
Take care.
i have had to move back to illinois to care for my aging mother. i only work part-time now and cannot make my mortgage payment for my michigan home any longer. this has been my primary residence since 2001. what am i liable for if i stop making payments? am i eligible for the mortgage debt protection law? how do i proceed? thank you so much for your time.
Hi ann,
If you stop making the mortgage payments, the lender will foreclose the property to recover his payments. After the foreclosure, you will be liable for paying off the balance amount. If the lender forgives the balance amount, then you can get protection due to the Mortgage Debt Relief Act and won't have to pay taxes on the forgiven debt.
Thanks
If you stop making the mortgage payments, the lender will foreclose the property to recover his payments. After the foreclosure, you will be liable for paying off the balance amount. If the lender forgives the balance amount, then you can get protection due to the Mortgage Debt Relief Act and won't have to pay taxes on the forgiven debt.
Thanks
I own a condo in Las Vegas and another condo in CA where I presently live. At this time the condo in LV is not rented and I am unable to pay the mortgage on both properties. I am thinking about letting the property go into foreclosure. What are the tax consequences.
Hi christine!
Welcome to forums!
Unless the lender forgives the deficient balance, you won't be liable for paying any taxes. However, as the Mortgage Debt Relief Act is in vogue, you won't be liable for paying taxes though the lender forgives the balance amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Unless the lender forgives the deficient balance, you won't be liable for paying any taxes. However, as the Mortgage Debt Relief Act is in vogue, you won't be liable for paying taxes though the lender forgives the balance amount.
Feel free to ask if you've further queries.
Sussane
Is paying on a 165k mortgage when the house is worth 120k or less reason enough to let the home go into foreclosure. My daughter is considering this even though whe has a good job and is making her payments.