Liens On Properties Timeline
I am working a short sale currently. Sale is set for October 25, 2006. Just performed a preliminary title search and foune tax liens of 3.4K.
My question is after I have performed the title search and continue negotiating the short sale up tot he 25th, how do I stop additional liens from attaching to the property.
I am in North Carolina.
the liens will attach to the property, unless an agreement is reached with the taxing authority who holds those liens.
Please refer to original post.
I am not concerned about the tax liens. I am concerned about additional liens attaching prior to completion of short sale.
a short sale does not eliminate any of the junior liens, only a foreclosure can do that
The property is vunerable to liens until the title has changed after close of escrow.[ Edited by sanjosee on Date 10/03/2006 ]
Thanks for your reply. So what do you do to prevent liens from attaching after you have a title search completed in the early stages of the ss negotiations?
If I make an offer to abc bank based on my initial title search then when I go to close there are more liens attached. My offer would be toast for me at that point.
Daryl
Title Insurance prior to negotiating the short sale?
Just include a clause in the offer stating that if additional liens are attached your offer is subject to change.
Plus do not forget you will most likely be able to negotiate the junior liens placed on it right before closing for a small amount most likely, especially if mechanical liens, etc. Tax liens would be another story, though.
The chances of someone attaching more liens to a property that is in foreclosure is very slim. If more liens attach to the property within a 30 day period, just move on.
Ruman,
How do you market to get that many deals? And how long have you doing this?
It seems like you hit a niche there.
Just postcards, and they work great. Been doing it a year or so, I actually am a real estate agent and retail them and make just the commission, but $3-$6k only having to do the short sale i figure is a lot better than $20k having to buy it, fix it, and flip it, plus the risk. Especially if I can churn the volume.
Chase
Quote:
On 2006-10-05 12:23, ttime wrote:
Ruman,
How do you market to get that many deals? And how long have you doing this?
It seems like you hit a niche there.
The SSPRO is being modest. Check out the products the SHORTSALEPRO is offering on this site.
They have made me a lot of money!
[addsig]
You can only have ONE primary residence.
You can have 2 if you are married and living separately and filing tax separately
The term "primary residence" is more relevent in the context of your federal income tax return when you are trying to take a capital gains exclusion.
The lending industry, does not focus on "primary residence". but instead prefers to differentiate between property that is to be owner-occupied or non-owner occupied.
While it is true that the IRS will only recognize one primary residence at a time for a taxpayer, the lending industry does permit a borrower to obtain funding for more than one owner-occupied property. They just call this additional property a second home when originating a loan under the terms for an owner-occupied home loan.
Additional thought:
Do you and your husband live in another home that you own or In a rental?
Look carefully at NewKids clarification because later as you complete your transactions this begins to matter more and more. You do not want to set yourself up for appearing dishonest or just bad record keeping; not worth it. Use as a 2nd home if you are going to fix it up, but the rules matter there too. and then you cannot do the 1031. Consider the 1031 into the next property as one choice. Remember, the insurance that you set up needs to be real and the tax choices/laws.
The history of late and missed payments will likely culminate in a reporting of the foreclosure (triggered by 2, 3 or 4 missed payments) action. Typically the homeowner in foreclosure will either refinance, sell, file bankruptcy, or abandon the property . Whatever course of action employed will be reflected in one way or another on the credit history.
"Paid as agreed" following a history of late or missed payments might suggest that special considerations were afforded the payoff.
Every lender will report the Short Sale differently. On one of my recent successful short sales - the lender actually put the following verbage in their release letter:
Following receipt of the amount specified, the loan will be reported to the credit bureaus as "Foreclosure redeemed/short sale/settled" (account legally paid in full for less than the full balance).
Hope that helps
Those responses are both very helpful.
Thank you very much.
[addsig]
Something else you need to know is the IRS may also send the seller a 1099 for the amount of the deficiency that the seller now may owe taxes on as if it was income.