Q: I bought a foreclosed home in
A: You might have to pay these back taxes. If you bought the house subject to all liens (known or unknown), you might well owe these real estate taxes.
Unknown liens are a huge danger for those home buyers purchasing foreclosures and short sales. With foreclosures, the bank supposedly takes back the property, satisfies all the liens, and then resells the property with "clean" title.
With a short sale, the buyer may purchase a property subject to all liens and matters that may affect the title to the home. In some cases, a buyer in a short sale could be responsible for the payment of unpaid real estate taxes, contractor's liens and homeowner association fees and dues.
Frequently, buyers of foreclosed homes buy them on their own without the assistance of an attorney. In some cases, they buy these homes without purchasing an owners title insurance policy. A buyer of a foreclosed home must make sure that they obtain good title to the home they are buying. They must make sure that all prior unpaid real estate taxes have been paid or satisfied. They must also make sure that all other claims against the property have been wiped clean in the foreclosure.
People often don't understand the difference between a short sale, a foreclosure and an REO (real estate owned) property.
In a short sale, the seller is a person that is selling the property for less than what he or she needs to satisfy all of the costs of the sale, including paying off the lender. If you buy a short sale and are not careful, you may find yourself buying the home and having to pay expenses that were unpaid by your short sale lender.
If you buy a foreclosure, you should be buying the home at the courthouse steps and may have to clean up title issues that were unresolved in the foreclosure. A foreclosure generally wipes the slate clean of most liens and other matters that affect the title to a property. A foreclosure will generally not get rid of easements and other agreements that affect a home, but will get rid of mortgages and other claims of lien that affect the home, including money owed to homeowner's associations.
However, in some cases, real estate taxes are not wiped out when a property goes through foreclosure. If you are buying a foreclosure, you must know what can and will affect the title to the home you are buying.
Finally, an REO property is a property that generally has gone through foreclosure and is now owned by the bank. You should treat an REO property in the same manner as a property owned by a seller, but you should make sure that all fees and expenses have been paid by the bank from the time they took title to the property through the date of your purchase. In addition, you'll want to make sure that all real estate taxes are current on the home.
Did you hire your own real estate attorney (not the one hired by your lender) to go over the details of your purchase and help negotiate? If you did, go back to him or her and have a discussion about this issue and find out what you need to do to resolve it.
If you didn't hire an attorney previously, you may need one now. Just know that if the taxes did not get paid and the lender in the foreclosure did not have an obligation to pay them, you are going to have to pay them. Get moving, because it's possible that the county will sell your home for back taxes owed very soon.
Q: My husband bought a house two years ago. We signed some papers. I recently checked those papers and I noticed that a quitclaim was included in those documents. My husband says I needed to sign it because he was not going to be able to get the loan otherwise. Is this true? Is he being honest?
A: There are several possible reasons that you would have had to sign a quitclaim deed.
One reason might have been was that your credit was so poor that the lender would not allow you to be on the loan to the home nor on title in order for your husband to refinance the home.
Another reason would be that your husband refinanced the home but simply wanted to take you off the title to the home.
A third reason might have been that your husband wanted to avoid having you on the title to the home and on the mortgage as well.
Usually a husband and wife will both own a home and will both obtain financing for the home together. If you obtain financing together, you are both responsible for the loan payments no matter what. That means if one of the spouses dies, the surviving spouse is entirely responsible for the loan.
My biggest concern is that you're on the mortgage but don't own the home. If you're on the mortgage but he owns the home on his own, you've got some pretty big issues you'll have to work through.
Before jumping to any conclusions, review the documents from the refinancing. You should see if the loan application was in your name and your husband's name. You should determine whether the loan is in your name and your husband's name. If you have the closing statement, see if your name is on the closing statement along with your husband's. Then, if you have a copy of the promissory note from the closing, see if you signed it along with your husband.
Once you have all this information in hand, you can assess where you stand and whether there's a problem or not. If your name was taken off the title to the home because your husband could not refinance the home with your name on title, you can always add your name back onto the title to the home.
Please speak to a real estate attorney to find out what, if any, options you have at this point if you suspect there is a problem at hand.
Q: I was in the process of short selling my rental home. The loan was originally a Countrywide loan that is now owned by
My loan was deemed fraudulent by Countrywide's legal dept. They advised me that at closing of the short sale they would return to me the
I went to the home one weekend to check on it and clean for an upcoming open house. My locks were changed and
I am not in foreclosure. The lender has refused to give me a key and return my possessions. I have been locked out of my rental property for nearly 10 months. I asked them to foreclose on me and they refused.
The OCC and state refused to get involved due to "jurisdictional issues."
I want to know why the OCC won't get involved and how can a bank seize a home without due process?
I'm not sure you'll qualify for any money from these cases, and it sounds from your letter as though your loan has already been deemed fraudulent. But it's worth seeing if you qualify.
On to your question: It's unclear to me why your home would be locked (and looted) if there had been no notification and no foreclosure. But nothing really surprises me anymore when it comes to lenders and loans. Stranger things have happened.
I wish I had some answers for you, but I think you need to discuss the situation with an attorney and consider all of your options. This may include a lawsuit against the lender. If you don't know an attorney, please contact your local bar association and ask for the head of the real estate committee and the head of the litigation committee. Contact these attorneys and describe what has happened to you and ask for their help in locating the appropriate attorney.
Sometimes you have to send up a flare to get noticed.
- An Expert Looks at the Future Of Real Estate
- How Financial Reform Affects Home Buyers
- 10 Best Places to Reinvent Your Life in Retirement
- Housing Market Takes Another Step Backwards
- When Buying Distressed Property Know All Liabilities That Come With It
- 3 Ways to Invest in the Real Estate Rally
- Will the REITs Rally Continue?
- Distressed Home Sales to Sandbag Housing Revival
- Home Sales Poised to Drop in Coming Months
- Did You Miss Out on 2010 Home Buyer Tax Credits? It May Not Matter
- New Home Sales Plummet to Record Low
- The Housing Market's Unexpected Drop
- Builders Break Ground on Fewer Homes
- Home Builders Grow Gloomy As Tax Credit Ends
- Housing Market Predictions Change with Lousy Housing Sales Numbers
- Homebuyer Tax Credit Deadline May Be Extended
- Home Repossessions Hit New Record High
- Applications Point to Slow Summer Housing Season
- Bank of America Program to Forgive Loan Principal for Some Borrowers
- Home Prices Have Further to Fall: Here's Why
- 10 Cities for Retirement Property Steals
- What Home Sales Jump Means for Economic Recovery
- Why Housing is Headed for Second-Half Headaches
- Mortgage Rates Are at Historic Low, but LIBOR Is Rising
- Unloading a Timeshare No Simple Task
- Loan Modification Nightmare Continues As More Americans Pay Their Mortgage Late
- How to Identify Ideal Vacation Rental Property
- 7 Ways to Avoid a Crummy Real Estate Agent
- Rules To Improve Credit History and Raise Credit Score
- Confused About New World of Mortgage Finance? You're Not Alone
- Underwater on Mortgage But Too Much Skin in Game to Walk Away
- 7 Reasons to Downsize in Retirement
- Investment Property Costs: Add These Real Estate Expenses to Your Budget
- Don't Make These Real Estate Investing Mistakes
- Don't Make These Real Estate Investing Mistakes (Part 2)
- 12 Hidden Costs of Homeownership
- Don't Sign Over Title Until Your Name's Off the Mortgage
- Quitclaim Deed Not a Way to Get Mortgage Modification
- Nine Ways to Make Your Home More Appealing to Buyers
- Loan Modification Angst
- Obama Housing Rescue Tackles Unemployment & Underwater Loans
- How Much House Can I Afford? Calculating Home Affordability
- Home Sales Flat Before Spring Buying Season
- More Homeowners Pursue Remodeling Projects
- America's Most Underwater Housing Markets
- Energy-Efficient Updates Help Homeowners Save Cash
- Home Buying Checklist: What Savvy Home Buyers Need to Know
- Social Networking for Realtors Mortgage Lenders Buyers and Sellers
- Home Affordable Program Failing Homeowners
- Rate of Home Price Declines Slows, But More Drops May Be Ahead
- The Future of Home-Price Appreciation
- What Tanking Home Sales Mean for Economic Recovery
- Home Foreclosures Approach Peak Range
Real Estate - When Buying Distressed Property Know All Liabilities That Come With It
(c) 2010 Ilyce Glink, Real Estate Matters