Posted on October 10, 2010.
Recently my parents lost to foreclosure and Their Home They Are now planning to file for bankcrupcy. Theys Recently Went To File Their Taxes And They found out IRS IS billing for Them 52.000 Abandonment Even though THEY Have Tried for months Asking for help from The Banker. Need some Advise you how i can help guide my parents to The Right People to Settle The foreclosures.
Bernardo Saemenes says...
What people do not understand is that if/when a property is foreclosed on the borrower does not simply walk away with a FC on their credit.At the beginning of the following year they get a 1099 and have to claim the banks loss as an income and then pay taxes on it. The IRS billing them is understandable, especially if they had unpaid taxes and the IRS placed a 2nd lien against the property.
The other thing that people forget is that the borrower may ask banks for help, but they have to qualify for it.Investors are not 'handing' the bank to people because they need help - they have to qualify by showing they can afford a lower payment/interest rate. If they do not qualify this way, or if there are 2nd liens on the property - often the banks hands are tied because the collateral can be FC on by the other lien holder(s) and the risk of loss all the way around is to great.
You have a couple of choices here;
1) If your parents haven't been evicted yet and if you're in a "Redemption State" you might be able to redeem the property by making a years worth of interest payments.You'll want to contact the FC attorney assigned by the investor to get answers to those questions - or look it up on the internet.
2) Again, if your parents are still on the property they still might be able to sell it, possibly even a Short Sale which would mean getting an offer for close to Fair Market Value.You can contact the REO of your parents loan servicer to inquire about this possible option.
3) Move forward.The FC is done.I would inquire (if you haven't already) with that BK attorney to see if they do anything to reduce the debt owed to the IRS.
Good Luck.
Posted on October 11, 2010
