Archive for January, 2009
by William Blake
A tax lien can be applied to a home by the federal or state government when a person has not been paying their taxes. The lien can later be used to take possession of the home or property if it seems that the owner is planning on evading taxes.
The owner of the home has to pay all the taxes within a set period of time or else the property in question can be auctioned off publicly by the government.
If you are thinking about purchasing a home that has been made available for sale by means of a government tax foreclosure it is important that you know that you are accepting any and all risks that are associated with the property; the government offers no warranties on properties sold in this way. This can create serious problems. At some times, individuals have purchased properties at auctions without ever actually seeing them and have wound up wanting to get out of the sale. Even though the government could choose to allow the buyer to bail out of the transaction, they will lose their 10% deposit from the auction no matter what.
Additionally, if the property is resold and the final bid is less than that of the original bid, the person backing out can be held responsible for the difference. Buying home through government tax foreclosures can provide a chance to buy houses considerably below their market value, but buyers must be aware of the dangers involved before bidding.
Tax Sales: Not Always Final Immediately
When a home is auctioned due to government tax foreclosures, many states give the original homeowner 10 days from the date of the sale to pay all taxed due and reclaim ownership of the home. When this happen, the bidder is refunded any deposit they made.
Follow-up bids are also permissible at government tax foreclosure auctions in some states. These bids are made after the auction has ended and must be for a price that is at least 10% higher than the original winning bid was.
For those with a federal income tax lien they should be able to avoid government tax foreclosures by making arrangements to pay off the debt. The Internal Revenue Service as well as many state governments offer programs where a compromise offer can be made in order to avoid drastic measures such as government tax foreclosures. However, ignoring the situation usually results in foreclosures without further notice.
About the Author:
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by William Blake
You may not realize it but banks aren't the only ones conducting foreclosures nowadays. The Federal Government, too, conducts foreclosures. Government foreclosures occur for several reasons. Most of the time it is because someone is receiving government help and fails to live up to their end of the bargain. For instance, if someone is living in government subsidized housing, and can no longer make the small payments required to stay in that home, the government will foreclose and will force that person to leave.
This is the perfect opportunity for a potential buyer to make a purchase. Even though you will not be able to get anything for free from the government, you could purchase a property for a very low price, especially if you make a good offer. The government is interested in making money, and they can do that better if the property in question is occupied.
Using Local Newspapers
The classified section of any local newspaper should contain information regarding government foreclosures that are scheduled to occur in the area. Properties such as apartments, homes, and farm land are all available. To make an offer, simply contact the government office that is handling the foreclosure process. In most cases the government will be willing to accept any reasonable offer. Again, their goal is to make money off an occupied property.
Government Run Websites
Certain government run websites also list information regarding local government foreclosures. For example, the official website of Housing and Urban Development, commonly referred to as HUD, contains useful information regarding foreclosure properties. Checking these websites frequently will help you be ready to take advantage of an opportunity whenever it presents itself.
Get Great Bargain Prices on Homes and Other Properties
When you purchase a home or other property that is a government foreclosure, you will be able to get a great low price that you would not be able to find anywhere else. You need to stay on top of emerging opportunities so that you can jump at any chance that appears. The property of your dreams could be on the market as a government foreclosure tomorrow, so you need to check the Internet, local papers, and any other sources you know of to find out when and where there are government foreclosures.
About the Author:
Would you like to find some extra cash to help wipe out credit card debt this month? Visit the Debt Reduction Academy website, where you can claim your free 5 day mini course "Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month". Grab your copy now at http://www.debtreductionacademy.com/minicourse.php
The mortgages rates are at historic lows, there has never been a better time in history to buy a home or invest in one. There most likely will never be another time in history with opportunities like investors have today.
It’s a Fantastic Time to Get a Mortgage
We hear all the doom and gloom over housing; you would be surprised to know that this is a fantastic time to get a mortgage. If you have poor credit, or credit problems it will be a tough road to be sure. You will never be able to get a better deal on a 30-year, fixed-rate loan than today. You must have a solid FICO score, a manageable debt, and proof positive of a reliable income. With these you can just about write your own deal and terms.
The Last Time Rates Were This Low Was in the 60s
Some of you may remember back around 1961 to find a time when 30-year mortgages had rates this low. This is one to that, thank the U.S. government for, and that is trying to jump-start the stalled housing market by buying up mortgage-backed securities. On Dec. 31, Freddie Mac reported that average rates on 30-year fixed mortgages dropped to 5.1 percent for the week, down about 1.3 percentage points since late October and the lowest since 1971.
Shop Around for Your Mortgages and Here is Why
Ordinarily, one loan is about as good as another because most lenders are close in their offers on 30-year loans. Not now. With the economy in such a melt-down, lenders are lost in space on how much risk they're willing to take in making loans. So you can really win by shopping around. And keep a close eye on the rates because they are constantly changing. Back in late December 2008, Wells Fargo was offering 30-year loans at 5.0 percent plus one point, while Bank of America was offering the same kind of loan at 6.625 percent plus one point. So it pays to keep your eyes open.
What Ever You Do Get a Fixed Rate
Don’t believe what you were told about the pros and cons of fixed- vs. adjustable-rate mortgage loans. Today, the best deals are on fixed-rate loans because that's the segment of the market that the government has been targeting with support.
It Just Maybe a Good Idea to Keep Your ARM
And here is why! If you have an ARM and its coming due on an interest rate reset, don't rush to unload it. Short-term interest rates have gotten so low that you're very likely to see your monthly payment fall. Thank your lucky stars if your ARM happens to be indexed to the one-year Treasury bill, whose yield has fallen below half a percent. Even with the spread added on, you're still paying only around 3.25 percent a year.
Check Your Credit Ratings
The hoops to jump through to get one of those low fixed-rate loans are high. The reason for this is Fannie Mae and Freddie Mac has tightened standards for the loans. You'll need a FICO score that is in the clouds for the best interest rates, although for a big enough fee, Fannie and Freddie will guarantee loans with FICO scores down to the mid-600s. You will need the traditional down payment of 20 percent.
Here are the hoops you must jump through. Buyers must satisfy the lenders’ debt-to-income standards. Here is what they are looking for as of late December. Monthly mortgage payments cannot exceed 28 percent of gross income, while all debt payments (including student loans, etc.) cannot exceed 36 percent of gross income.
The Federal Housing Administration-guaranteed loan, figures are 29 percent for mortgage debt and 41 percent for all debt.
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