For Those who Think They have Come Across Everything in Pre Foreclosure Short Sales!
For Those who think they have come across everything in Pre Foreclosure Short Sales!
The longer you do this real estate short sale preforeclosure business, the more you realize you have NOT seen everything.
We have a buyer for a house we have negotiated a short sale with the bank for. The buyer came from out of state through internet marketing. The buyer has almost 1,000,000 dollars in 1031 Tax Exchange money to spend on real estate.
1031 Tax Free Exchange
1031 Tax Exchange money comes from when you sell a property, identify it as using it in a tax exchange, have a third party handle the closing for you so you never touch the money. The money sits in the tax exchange company's escrow account until the final closing date. that final closing date must be within 180 days or you will lose the ability to NOT pay taxes on the sale.
That's the point here. To sell a property you have owned for along time, have no more depreciation deductions on it so you sell it, no taxes are due, you buy another property and can take depreciation expenses on the new building.
There are lots of hoops to jump through to get here but well worth it when it is done.
Federal Prison
Well our Tax Exchange buyer, as it got closer to the closing date, is in Federal Prison. When you have committed a Federal offense, you lose some rights. Now, I did know you couldn't vote ever again in life when this happened. You also can't own a gun ever again.
However, I didn't realize you can't buy and sell property - at least while you are in Federal prison.
Our buyer does have a POA (Power of Attorney) for somebody else (his sister) to sign for him. Apparently, she or he or they are mad at each other. She says she will not be a part of this closing or anything to do with him. So we don't have a buyer and the 2nd extension has run out to close our deal.
What's Left?
Pay the sister some money to sign? Don't know if that will work, but if we don't ask, I'm sure it won't work. We'll keep trying. This is a $21K profit deal. Hard to say no before we have tried absolutely everything. Stayed turned. It's not over till the POA says no for sure or the bank does. We won't give up!
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All the Short Sale Queen Tips and Tricks
The longer you do this real estate short sale preforeclosure business, the more you realize you have NOT seen everything.
We have a buyer for a house we have negotiated a short sale with the bank for. The buyer came from out of state through internet marketing. The buyer has almost 1,000,000 dollars in 1031 Tax Exchange money to spend on real estate.
1031 Tax Free Exchange
1031 Tax Exchange money comes from when you sell a property, identify it as using it in a tax exchange, have a third party handle the closing for you so you never touch the money. The money sits in the tax exchange company's escrow account until the final closing date. that final closing date must be within 180 days or you will lose the ability to NOT pay taxes on the sale.
That's the point here. To sell a property you have owned for along time, have no more depreciation deductions on it so you sell it, no taxes are due, you buy another property and can take depreciation expenses on the new building.
There are lots of hoops to jump through to get here but well worth it when it is done.
Federal Prison
Well our Tax Exchange buyer, as it got closer to the closing date, is in Federal Prison. When you have committed a Federal offense, you lose some rights. Now, I did know you couldn't vote ever again in life when this happened. You also can't own a gun ever again.
However, I didn't realize you can't buy and sell property - at least while you are in Federal prison.
Our buyer does have a POA (Power of Attorney) for somebody else (his sister) to sign for him. Apparently, she or he or they are mad at each other. She says she will not be a part of this closing or anything to do with him. So we don't have a buyer and the 2nd extension has run out to close our deal.
What's Left?
Pay the sister some money to sign? Don't know if that will work, but if we don't ask, I'm sure it won't work. We'll keep trying. This is a $21K profit deal. Hard to say no before we have tried absolutely everything. Stayed turned. It's not over till the POA says no for sure or the bank does. We won't give up!
If you're not currently receiving The Short Sale Queen's Tips and Tricks, Sign up Here to learn more on how to get around the snafu's that occur in everyday deals!
All the Short Sale Queen Tips and Tricks
posted by Deb at 10:51 AM
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