WHY ARE THE BANK HOLDING ON TO ALL TH EXCESS INVENTOR? IS IT TO KEEP THE HOME PRICES HIGH? I CAN NOT SEE ANY OTHER REASON. SOMEONE PLEASE HELP???
my friend’s primary home mortgage is paid off. she want to take a mortgage on the primary home in order to buy a second/vacation home. Can he deduct the taxes?
I would like to buy a foreclosed property from auction. I would need a mortgage to pay for the property. If I go through the bank how do I do this? I also do not have the 10% down that the county requires on auction day.
your best answer would be to contact either the IRS directly or a tax preparer in your area. Tax issues are not something you want to get an unauthorized opinion on.
yes…..He can deduct the closing costs and the interest on both properties..
I assume you mean the interest, not the taxes.
In any case, the taxes are definitely deductible. The mortgage is deductible up the the amount she originally paid for her primary residence, plus any long term capital improvements she has made.
For example if her first home was purchased in 1992 for $ 200,000, and she made an addition of a 4th bedroom for $ 40,000, she can deduct a martgaeg interest payment of $ 240,000 on a second mortgage, used to pay for a vacation home.
What I suggest is to look to the tax code regarding a second home. But I believe the answer is yes.
He can deduct the mortgage because it will be on his primary residence with the vacation home being paid for in cash from the mortgage.
Ifyou go to your banker or to a mortage broker and see about getting preapproved and let them know your intentions and see if there is a program that will back you in your purchase …
Good Luck!
You need the downpayment,and a pre approved loan,with a 30 day escrow or you pay huge interest till you close.Also,the inspection might not pass,holding up loan,foreclosures are as-is
You will absolutely need the 10% down on auction day. No bank or mortgage company will lend you this on the subject property because you will lose it if you back out of the transaction for any reason. If you have equity in your home, you can borrow the 10% on that. If not, you may be able to get an unsecured loan from a bank if you have stellar credit. The only other options are hard money loans and credit card cash advances. Both of these options will cost you a bundle but may be worth it if you will make enough in the long run.
Buying a foreclosure is not the simple road to riches that infomercials present it to be. If the property is worth a lot more than the loan amount, there will be a bidding war at the sale. There can be problems with title, liens, etc. The repair costs can be much higher than anticipated because you cannot do an adequate inspection. If you do not have the money to lose, it is not always a great idea to jump into this arena.
Good luck.
First, be VERY CAREFUL about buying at an auction. You will be bidding against a small group of people (sharks, really) who do this for a living and who enjoy making people like you over-bid on property. They DON’T want you coming back and weasling in on their livelihood.
Second, make sure you understand the rules of buying in your county. In many California counties, you must pay a non-refundable deposit just to bid, and you must pay 100% of the winning price ON THE SPOT.
Third, you will have no warranty whatsoever. You get the house as is, including TAX LIENS that may be associated with the property, and any liens that are senior to the one you’re buying from.