top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Chap 7 - Home and Taxes

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Chap 7 - Home and Taxes

    Okay folks, if anyone would like to take a stab at helping me out on a very convoluted BK and Tax question, would appreciate any insight. First some background.

    We filed a 7 in May, discharged fully in September, 09. We owned a home and basically were told that the bank would foreclose and sell in October by their attorney's via mail. We then moved out and rented a place to avoid being homeless when the house sold, and they went ahead and assigned a realtor, changed the locks, turned off utilities, etc. So far so good.

    During this time preceding the BK, we had attempted to short sell with their permission, and two offers were rejected eventually. So foreclosure after BK appears to be the way they wanted to go. Our realtor, however, found out after we moved out that they "suspended" the foreclosure sale and still 4 months later have not OFFICIALLY foreclosed. They did not contact us with this suspension, so we would not have known if our realtor had not still been trying to short sell the house during our BK. In other words, we could have been living their rent free still.

    So the question is this - Even though we paid no mortgage or anything else during 2009 and our runup to Chap 7, would we still say we owned a home in 2009 or have anything to do with a house in 2009 for any taxes or interest (Again, we officially paid nothing and we were discharged from note)? If they haven't foreclosed and were paying our property taxes, I have no idea but I assume they are since we've never received a bill. We have not received any type of form from the Bank relating to discharge of debt either. In effect, though we are cleared from having to pay for the house, we technically still own it and could live in it until they actually kicked us out (that's how I see it anyway). We have no desire to do that, but still, I don't see how a bank can keep this threat of foreclosure hanging over us forever. I want to be done with it one way or the other.

    My BK attorney is no help since we "let him go" when he charged us an "additional" 2500.00 over the course of the proceedings without telling us until we got the bill (for every call, email, or letter written on our behalf at 350 per hour - what a joke).

    So I have no idea whether we should file as if we "owned" a home in 2009 or not. I would assume I could go spend hundreds at HR Block but I"d rather not if someone with knowledge can grasp this situation. I may have no choice but to bite the bullet, but if anyone wants to take a stab at this, I'd appreciate the information. Like I said, it's a big mess still. Thanks much.

    #2
    It sounds like you did own a home and perhaps still do! How far through the foreclosure process did the case get? Perhaps you could check with your county real estate records or whatever to find out whose name is on the title, and when (or even if) it stopped being yours. Checking the docket for the case might reveal something useful too. (My foreclosure seems to be all online in the civil division of our county's court of common pleas, just as my bankruptcy filing is online through PACER.)

    Comment


      #3
      Originally posted by mtbc View Post
      It sounds like you did own a home and perhaps still do! How far through the foreclosure process did the case get? Perhaps you could check with your county real estate records or whatever to find out whose name is on the title, and when (or even if) it stopped being yours. Checking the docket for the case might reveal something useful too. (My foreclosure seems to be all online in the civil division of our county's court of common pleas, just as my bankruptcy filing is online through PACER.)
      Yeah, that's what I"m worried about. Not just because I want to be done with it, but I have no idea how taxes would work with the BK and so forth, or whether I am somehow still liable even though the bank (apparently) has been paying any taxes. The foreclosure process got to the point where the banks attorney sent out a certified letter stating the date the house would be sold on the county courthouse steps. We never received notice that it was suspended, but as I said, our realtor found out when checking on one of the short sale offers that was still pending.

      The bank, like many others have experienced I'm sure, ran us around for months as we tried to, at first, renegotiate a modified payment after the whole TARP and Hope for Homeowners baloney. But of course, they didn't do a thing. They finally said we could try to short sell, but because housing prices are so low, they rejected both offers at which the house was appraised! So why did they bother saying to try and short sell when they won't accept it. It's crazy.

      Anyway, I'll do some of that checking you spoke about, but I'm still looking for TAX help too. Thanks again

      Comment


        #4
        I don't see what difference it makes for filing income taxes if you spent nothing you can deduct on your real estate. Ain't nuttin' to report there.

        If the deed is still in your name, you didn't rid yourself of the real estate in 2009, so there's no need to report a sale on your income taxes.

        The property taxes attach to the real estate and you need not worry yourself over them post BK if, as appears to be the case, you're not planning to retain the real estate.

        Comment

        bottom Ad Widget

        Collapse
        Working...
        X