Taxes, Disability, and Contract for Deed..... - Posted by David Alexander

Real Estate Investing
#1

Posted by TRandle on January 07, 2001 at 18:22:24:

David,
If the entire payment is escrowed, the mortgage company would at least become aware of the tax situation. Granted, they may not be curious enough to pursue, but with “potential” tax liens taking priority over their interest, they might?

How disabled is he? If he can drive, can you trade some of your mobile notes for a vehicle to give him in exchange for paying the taxes?

How is he going to be able to make payments?

If he declares BK, what impact will that have on your down payment?

Is the down large enough to subsidize his taxes for a while?

Are you in good enough with the original seller to approach the seller and redo this thing in a PacTrust so that everythings’s pretty much out in the open? That way he could get his tax exemption, couldn’t he?

Just some ideas to ponder…

We need to make ski arrangements soon. Later…

#2

Taxes, Disability, and Contract for Deed… - Posted by David Alexander

Posted by David Alexander on January 07, 2001 at 15:14:43:

I have a property that I have taken subject to in a trust. I’m selling the property on a contract for deed. The Dad of the folks buying the property has informed me that because he is permanently diabled he doesn’t have to pay the property tax.

How do I get this exclusion done for him since I’m selling on contract for deed and the property is in a trust?

David Alexander

#3

Re: Taxes, Disability, and Contract for Deed… - Posted by Bud Branstetter

Posted by Bud Branstetter on January 07, 2001 at 22:08:05:

A disabled person get an additional exemption but not all taxes wiped out unless it is really low end. Seniors too get an additional exemption.

Get a form from the appraisal district and an affidavit from the owner(you as power of attroney or trustee) that it is being sold on contract. That way they will give him the exemptions as well as the homestead. I doubt that the lender will check that there are these exemptions.

#4

Re: Taxes, Disability, and Contract for Deed… - Posted by David Alexander

Posted by David Alexander on January 07, 2001 at 16:13:48:

I’m wondering if we can show the sale to the tax office, to get the discounted taxes… that way the mortgage company doesnt know it’s just applied automatically by the tax department.

The folks buying the property (the Dad) was just hit by a drunk driver and was permanently disabled. The girls insurance (18 yr old) only covered up to 100k. His medical bills alone are over a 160k and suing her would be almost frivolous since she has no assets.

Needless to say his credit is wrecked at this point. He lost a car to repo after the accident, and then couldnt pay all the medical since the insurance hadnt settled.

They are going to give me a considerable amount down and so I’m trying to figure out the tax thing. I know there is a way.

David Alexander

#5

Re: Taxes, Disability, and Contract for Deed… - Posted by TRandle

Posted by TRandle on January 07, 2001 at 15:38:10:

David,
That’s an interesting question. My initial response was that if he doesn’t want to pay property taxes, then he goes and gets a loan in his name, and you’re done. I assume you’re already into this so that you can’t adjust his P&I high enough to mask the fact that he really is paying for it? I can’t think of any way around this if there’s an underlying loan with an acceleration clause. If there is, can you offer him some other incentives? Without any of the details, it appears this will be between you and him. I look forward to the responses.