I am checking all my options to try to come up with solution to my 3 months past due mortgage.
Best Deal Ads :
6 Responses to 'Can i do a deed in lieu of foreclosure if I have a tax lien against my home?'
Leave a Reply
Categories
Archives
Recent Posts
Recent Comments
Tag Cloud
Resources
The bank will more then likely require that you satify all other liens on the property.
If you haven’t contacted an attorney and it sounds like you haven’t, then you should. You might be able to have the past due amounts put into a mortgage reconfiguration by the mortgage company. The later you wait, the more of a mess you may be in.
no–you can’t. You owe money to some branch of the gov. They will want their money before you hand over the deed. Your lien is a secured property lien.
I would see if you could talk to the tax people–y’know, more tax problems can be solved by “talking” to the state or IRS, they aren’t cannibals. And see if you can work out a tax payment plan in exchange for them taking the lien off. Then again, it might not work since you must have ignored them to the point where a lien was the only option.
If you’re that far in the hole, maybe you could look at bankruptcy or reorganization. A tax debt can not be erased, but I seem to remember (and you have to check this out yourself) it can be seperated from your house on bankruptcy and paid as a seperate debt.
How much time is left on the tax lien in which you can pay it off (equity of redemption period) and keep your home? Find out. Google tax lien redemption period and find out for your state.
Here is a site that lists the time frames by state:
Doing a deed in lieu of foreclosure still goes on your credit as a sort of voluntary repossession. Also once your house is auctioned you will be liable again for the difference between what you owed and what they sold it for (deficiency judgment).
I would talk to the lender about a temporary hardship agreement to get your payments back on track.
Google foreclosure bailout loans and see who is offering this kind of assistance.
Here are some foreclosure assistance links:
Sounds like this kind of term from a lender is to be avoided:
Rent every room in the house and live in the basement for now. That is what I would do. Considering what it takes to get in a home I would never give it up without one heck of a fight.
You have to pay the tax lien…there is no way around it.
no you cant. the only time the lender will do a deed in lieu is if there are no liens on the property. the thing they dont tell you is that a deed in lieu is looked at as the same thing as a short sale, foreclosure, bk to the eyes of any future lender. your current lender probably tells you that a short sale will be better for your credit but thats not true and a short sale will be a huge tax consequence for you cuz the lender will send a 1099 to satisfy the difference if you owe more than its worth. if your property is worth more than you owe then maybe you can ask your lender to do the deed in lieu with the lien and see if they will take it cuz right now so many lenders are having to take properties back which the borrower owes way more than its worth. you should also talk to a lawyer regarding a bk cuz that would probably be your best bet depending on if you owe more than the house is worth cuz you dont want that 1099 to be sent out. also ask your lender if you do a deed in lieu if they will send the 1099. let me know if you need anything else