Posted on: 15th Oct, 2007 10:06 am
if taxes have not been payed on home and income tax has not be filed for four years do you still get areverse morgage?
If taxes haven't been paid on a home then NO mortgage can be obtained.
The government whether it is local, state, or federal is the only people who can foreclose on a home before even the mortgage company does. They get their money before anyone. No mortgage company will loan money on a home unless the taxes are up to date, this includes income taxes for the borrower or property taxes on the house. The overdue taxes will have to be paid no later than right before the loan closes. There are no exceptions to this rule as far as I know.
I repeat the government can force you to sell said house and they will get paid before even the mortgage company gets paid. This is the only time this happens.
The government whether it is local, state, or federal is the only people who can foreclose on a home before even the mortgage company does. They get their money before anyone. No mortgage company will loan money on a home unless the taxes are up to date, this includes income taxes for the borrower or property taxes on the house. The overdue taxes will have to be paid no later than right before the loan closes. There are no exceptions to this rule as far as I know.
I repeat the government can force you to sell said house and they will get paid before even the mortgage company gets paid. This is the only time this happens.
Hi,
It is better to clear off the taxes first in order to remain on the safe side.
It is better to clear off the taxes first in order to remain on the safe side.
Hi Crose,
I totally agree with Eric. If you haven't paid taxes, you will not qualify for any mortgage loan. It is better for you to clear all the due taxes as soon as possible and then you can think about mortgage. If you are not paying taxes to the Government, how will a lender be assured that you will pay them on time.
Thanks,
Larry
I totally agree with Eric. If you haven't paid taxes, you will not qualify for any mortgage loan. It is better for you to clear all the due taxes as soon as possible and then you can think about mortgage. If you are not paying taxes to the Government, how will a lender be assured that you will pay them on time.
Thanks,
Larry
Hello Crose2121,
And hello to everyone that has responded.
I would like to correct a few statements and make sure I am clear with the question.
When it comes to Reverse Mortgages we need to keep in mind that they tick to a differant set of rules compared to conventional forward mortgages. Reverses are more of a financial tool then a mortgage and they are designed to assist in just such a situation as this.
Based on the limited information you have given me, you would be eligible for a reverse mortgage. The 2 concerns mentioned do not exclude you.
As for the back property taxes, they would be brought up to date and current from the proceeds of the reverse mortgage. Many people use the reverse to help pay property tax as many times they are house rich and income poor. If you are struggling to make ends meet each month and each year you can't cover your property tax.....but you have equity in your home, you can use the reverse to gain access to the dormant equity in your home to help pay your taxes and use the proceeds for anything you wish without worrying about another monthly payment from a conventional equity loan.
As for not filing taxes for the past 4 years, again not a concern in regards to qualification for a reverse mortgage. Tax returns are not required in the process because income or credit is not required to qualify. You make no monthly payments so income or credit is not a factor. The loan is purely secured buy the equity in the home and the home itself. Even if your concern was a tax lien for back taxes to the IRS, you would still qualify for a reverse mortgage but would need to have enough proceeds from the loan to payoff any debt you owe that is attached to the home.
There are other factors to consider when doing a reverse mortgage but your posted concerns do not hinder you from obtaining a reverse mortgage.
I hope this helps and I would be glad to clarify any other concerns you may have. A Reverse Mortgage can be complicated and your overall situation needs to be reviewed be for obtaining one. Lending limits are based on the state you live.
Where is your home located?
Regards
Tony Golden
Financial Advisor
Reverse Mortgage Specialist
And hello to everyone that has responded.
I would like to correct a few statements and make sure I am clear with the question.
When it comes to Reverse Mortgages we need to keep in mind that they tick to a differant set of rules compared to conventional forward mortgages. Reverses are more of a financial tool then a mortgage and they are designed to assist in just such a situation as this.
Based on the limited information you have given me, you would be eligible for a reverse mortgage. The 2 concerns mentioned do not exclude you.
As for the back property taxes, they would be brought up to date and current from the proceeds of the reverse mortgage. Many people use the reverse to help pay property tax as many times they are house rich and income poor. If you are struggling to make ends meet each month and each year you can't cover your property tax.....but you have equity in your home, you can use the reverse to gain access to the dormant equity in your home to help pay your taxes and use the proceeds for anything you wish without worrying about another monthly payment from a conventional equity loan.
As for not filing taxes for the past 4 years, again not a concern in regards to qualification for a reverse mortgage. Tax returns are not required in the process because income or credit is not required to qualify. You make no monthly payments so income or credit is not a factor. The loan is purely secured buy the equity in the home and the home itself. Even if your concern was a tax lien for back taxes to the IRS, you would still qualify for a reverse mortgage but would need to have enough proceeds from the loan to payoff any debt you owe that is attached to the home.
There are other factors to consider when doing a reverse mortgage but your posted concerns do not hinder you from obtaining a reverse mortgage.
I hope this helps and I would be glad to clarify any other concerns you may have. A Reverse Mortgage can be complicated and your overall situation needs to be reviewed be for obtaining one. Lending limits are based on the state you live.
Where is your home located?
Regards
Tony Golden
Financial Advisor
Reverse Mortgage Specialist
Sorry for the lack of my profile,
I was logged out when submitted. here are my details for the above post
Regards
Tony Golden
I was logged out when submitted. here are my details for the above post
Regards
Tony Golden
Is that so Tony? i was under the impression that one could pay taxes with reverse mortage proceeds but when Crose mentioned he didn't even file for the taxes, i thought he was not the ideal applicant for a reverse mortgage. But thanks for clarifying this.
Hello Adonis,
Yes, when you do reverse there is no income documents required or is the qualification based on it. Was there exceptable reason to not file taxes is a seperate question but as it applies to a RM, it will only be a factor of the loan if they owe any taxation or fees to the IRS. Although one can quailify to not file taxes if thier income is low enough each year which is a very low number. It all depends the source of funds one lives on each year.
Thanks
TG
Yes, when you do reverse there is no income documents required or is the qualification based on it. Was there exceptable reason to not file taxes is a seperate question but as it applies to a RM, it will only be a factor of the loan if they owe any taxation or fees to the IRS. Although one can quailify to not file taxes if thier income is low enough each year which is a very low number. It all depends the source of funds one lives on each year.
Thanks
TG
I got it Tony, it's well-explained.