Foreclosure Numbers To Crunch!
I have found someone who is currently 3mths behind on his mortgage. About 3000. His mortgage balance including the arrearages is about 92K. He recently had the house appraised @ 346K. Okay here's the problem. He also has an IRS lien of about 200k also on the property-he didn't pay taxes on excercised stock options and he spent the money. To add further details, he has a 2 acre buildable lot that he has recently subdivided, but is still encumbered by the liens on the current property. This lot if it could be unencumbered, is worth about 120k. This guy is willing to walk from the house for what he owes if he could keep the lot to sell. I was trying to work out how I could do this and make some good $. My first question is, does anyone see a way to buy subject to in spite of the hurdles of the IRS-high interest-and the encumbered lot? I am thinking of keeping until Spring to sell. Second ? If I were to buy the house and get a new mortgage, what are the chances that the IRS would accept say 165K to improve the margins? This would then allow the lot to become unencumbered giving the seller what he wants, his land to sell and no foreclosure on his credit, and me sufficient profit opportunities to retail @ say 315K.
Thanks for thinking through this with me.
I can't answer the IRS question, but why if you are looking to dump a house worth 340K+ for 315K do you need to wait until spring?
Why would you add 4 or 5 months of holding costs to your equation and still sell it that cheaply?
The only thing I can think of is to talk to a tax attorney about the possiblility of working a deal with IRS. "Pennies on the dollar", as tax attorneys often advertise.
The "pennies on the dollar" you are referring to is only in cases where the people have zero net worth. It is called a" an offer in compromise". They'll compromise when they see no worth to gain payment of the debt.
When the IRS sees the equity in the properties they'll laugh you out of their office.
Then you can see the property for sale on their website.
IRS will laugh you out of the office???? I doubt it, they have no sense of humor.
To things to ask the IRS would be an <Offer in Compromise>. The other thing would be to ask for a partial release of the lien. The major problem is that they are very slow. In this case, perhaps too slow. Sounds like it would be a better buy at the Auction.