All Forum Posts by: Account Closed

Let me make it clear.  The reason I believe a judge might push you out of the house is basically the following.  While you have been paying the payment on the property, you have been living there.  That means you have received an offsetting benefit for your payment.  Check the forums on bigger pockets, rents are often twice mortgage payments.  So unless you spent a large amount of money in repairs you have gotten as much as you put into it.

It would really depend on the judge.  He would probably go with what he thought was fair.

Here is how a recent case I know of went for two brothers in a probate case I know of.

1)  They could not work it out.

2)  They each talked to lawyers.

3)  Both lawyers said work it out or pay me $20,000.

4)  They paid the lawyers.  The lawyers filed some papers.

5)  The lawyers paid experts to determine the values of everything.

6)  Court ordered mediation.  Which costs more by the way.  All lawyers and the mediator suggest 50/50 split.

7)  Neither brother would take 50/50.  So paperwork was filed for full legal battle.

8)  The experts were paid more to prepare for the hearing. 

9)  Lawyers demand more money before the hearing.  Both lawyers get another $10,000.

10)  Judge starts the hearing by asking if they want to settle before the hearing starts.

11)  Two days later the judge orders the independent person he has appointed to liquidate all the assets, pay all debts, pay courts costs, pay the independent person's fees and their experts fees distribute any thing that was left 50/50 the heirs.

Of course, that is not your case.  It was in Texas.

But before you decide that you want to fight it out in court ask your lawyer which of those things would or would not happen in your case.  Just FYI your brother will probably fund his portion of legal fees from the estate so do not assume he will not have a great legal team.

I forgot one basic part.  Isn't the debt of the mortgage on the house you live in required to be paid before any money goes to heirs?

This is the perfect example of why people should have detailed and up to date wills.

I would certainly suggest trying to work it out with your brother.  The other option would be going to court.  If you force a sale of one home, the other will most likely be sold as well.

At least he has not decided to move in with you.  Are you listed on the deed for the house you are in?  Are you listed on the mortgage?

Another issue... did you father have any other debts when he died?  Did he die in a hospital?

If you decide to fight it out, you might be surprised how little will be left after the lawyers get done.

Normally the bank and the IRS work out the issue.  Perhaps saying the first mortgage lien is normally superior to the IRS lien is an over simplification, but they normally are.  Yes big banks are protected from the IRS.  Who would have thought it?

You mentioned that the notice of lien was filed PRIOR to the mortgage being signed.  That is a huge issue.  I am sure the bank is looking into the title work that was done to close the mortgage.  I do not know of a bank that would have meant to have second lien position to an IRS lien.

Another thing to remember... if you buy a foreclosure and there was an IRS Notice of Lien on file they MUST have received notice of the sale.  The IRS also has a 120 day right of redemption.  That means your title will be clouded for 120 after the auction.  The IRS might advertise the property during the 120 because they do not normally redeem on the property without a buyer being secured.

So in short...

Your case is not normal.  The IRS lien in your case will most likely be superior to the mortgage.  If that is the case the property will probably be pulled from the auction until the Title Insurance pays off.  Even if the IRS lien was not superior, notice to the IRS is always required.  If an IRS notice of lien has been filed the IRS will have a 120 right of redemption that DOES NOT HAVE TO BE NOTED ON THE DEED.

This is not meant to be legal advice.  This is from personal experience.  I have bought properties the showed notices of IRS liens at auction.  I have bought properties that sold at auctions and then I contacted the IRS with an offer after the buyer had spent many thousands of dollars on rehab.

I hope this helps.  Pay a good lawyer before you jump into this kind of investing.

In a few days this will be legal in Texas.  But I doubt any agents in Texas will wear guns openly.  If someone wants to do it, I would suggest they do it on every showing.  Otherwise it would look like they are making a negative statement about certain properties.  It could appear to be a form of red lining or part of a block busting practice.

Not exactly sure what types of protection you are wanting but I would suggest talking to a Texas lawyer and/or CPA.

There are lots of options.  They might also talk to you about how many entities you need.  They will certainly want to talk to you about trusts compared to LLCs.

A lot of this would also depend on if the properties are financed or not.

I love working these kinds of things out.  Did he mention a price for his 80% share?

In short... he may or may not own the property.  A good title company should be able to find that out.  A lawyer could also find it out if they look on www.pacer.gov.

Do you know what chapter he filed under?

Can borrow from your IRA? You also did not mention a home equity loan. That might be another option.

You might want to research "Down Payment Assistance Programs."  Some would say they help destroyed the housing market in the past but who am I to judge.

In the past, this is how it worked.  The property would be listed for $100,000 and could not find a buyer.  The price would be raised to $130,000.  At close the seller would "donate" $30,000 to a "non profit."  The non profit would "give" $26,000 as down payment assistance to the buyer to close the deal with.

Then the loan would be securitized as a loan with a 20% down payment.

I think this is still legal in at least some states.