All Forum Posts by: Steve Rogers

The Ptax is for calculating the collection of transfer taxes and tells the county who the new taxpayer of record will be going forward. The transferee on the ptax will get the delinquent tax bill.

OK so just to make sure, the person who I quit claimed the property to, the "transferee" is now responsible for all the delinquent taxes?

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Not really anything that tells me what the Ptax does, just the form itself

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Originally posted by @John Warren:

@Steve Rogers did you pay any tax at that time? In most areas of cook county sellers pay transfer taxes to the state, county and in many cases the local municipality. I know the state charges $1 per $1,000 of sales price and cook county charges $.25 per $500. Some local municipality can also be quite expensive, but you would need to look this up. Here is a link:

http://www.nwmetro.ctic.com/UploadedDocuments/Form...

The thing is, you would have paid this when you did the quit claim deed, so you should not have an outstanding liability. Taxes are paid in arrears here in Illinois, and I don't believe you would have any liability. Again, just check in with the attorney who did the quit claim deed. He/She should have explained anything like this to you.

I quit claimed the property for free 100%, didn't get a penny from it, didn't sell it, just gave it. All I paid was a lawyer $500 to file the quit claim and he said that he filed a PTax or whatever to get the deed recorded and that's about it.

My attorney who filed the deed has stated that I don't owe any taxes and that taxes, both current and back taxes that were sold, are tied to the property. Basically I want to be 100% clear and free of this property and not have to deal with it ever again.

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In December 2017 I quit claimed a property to someone else, it was then filed with the Chicago Cook County Recorder of deeds office.

My lawyer who filed the quit claim said that a P-TAX was submitted to get the deed recorded.

Please explain to me what this is.

Also I would like to know, since property taxes stay with the property. Is only the current owner responsible for property taxes? If a property gets foreclosed on because taxes aren't paid, does only the current owner's credit get slammed?

I'm moving out of Illinois soon and want to make sure I have 100% zero liability with this property, I need to wrap this stuff up before I leave. Thanks

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Originally posted by @Account Closed:

Yes then they would be responsible for the taxes. If the taxes aren’t paid, eventually they will be sold and penalties will accrue. If you still don’t pay, the tax buyer will foreclose and own the property.

Got it, I think there was some confusion, let me clarify a bit

-In December 2017 I quit claimed the property to my brother and it was recorded on Jan 10th of this year.

If the tax buyer forecloses and owns the property, only the owners credit will be affected by it? I'm asking if I'm in the clear now because I have no ownership or interest in the property anymore. I really don't care if it gets foreclosed on, I want nothing to do with it and don't want it hurting my credit.

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Originally posted by @Account Closed:

@Steve Rogers your attorney gave you some bad information. You are 100% responsible for the taxes if they are unpaid. Otherwise everyone would just keep quit claiming their property within the family to avoid taxes. When someone quit claims a property to you, they are giving you title, however it is, defective or not. Taxes run with the property. Unless you were issued a title policy when you acquired the property, you are on the hook for the taxes. If you have a clean bill of health aka a title policy that says the taxes were paid, you can file a claim with the title company.

But if I quitclaim to someone else, wouldn't I be giving them the title? Right now I don't own the property as I quit claimed it to someone else in January. I know that taxes run with the property and not the individual. I know that quit claiming doesn't make the taxes go away.

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Chicago IL, Cook County

In mid 2015, a property was quit claimed to me, it was recorded on 2/10/2017 according to the recorder of deeds website

In December of 2017, I paid a lawyer to quit claim the property to my brother, it was recorded on 1/10/2018, recorder of deeds website

1/27/2018 I receive a tax bill in the mail addressed to me OR current owner. I asked my lawyer (the one who filed the quit claim deed) and he said I am not responsible as I am no longer the owner and transferred my interest to my brother. I assume the reason why this was addressed this way is because it was less than 3 weeks after the quitclaim was recorded

Checked again today on 7/23/2018 on the Cook County Treasurer website. The current tax bill is addressed to my brother and his address. However it states that the 2013, 2014 and 2015 taxes have been forfeited which I assume means sold. 2016 says no taxes sold.

My brother is a massive degenerate and loser, his credit is already destroyed and he's filed for bankruptcy and owes over 400K to the IRS. So when this property inevitably gets foreclosed on due to back taxes, he won't care what it does to his credit.

However can this property being foreclosed on, can this have any affect on my credit score at all? My lawyer said I'm not responsible for the current taxes owed because I'm not the owner but I'm more worried about what may happen when Cook county forecloses on this property.

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My brother had put a lot in my name without my consent via quit claim deed. It's a small lot about 3000 square feet in Hyde Park in south Chicago. I had contacted an attorney because I had wanted to get the deed nullified but the attorney had pushed me to sell the property instead, and the real estate agent we worked with waaaay overevaluated the property. He listed the property and now we've dropped the price 2 times already and it's currently sitting at 1/4 what the original evaluation was. Basically a combination of bad advice from this lawyer and the real estate agent over evaluating the hell out of the property has really put me in a bad spot.

The biggest issue is that the property has 4500 in back taxes and 2300 in city fines. Now the City of Chicago has retained a law firm to collect this 2300 debt from me. It was 1800 but now interest is accruing in it monthly. I need to do something about it ASAP

I don't want any money but I just want to get rid of this property and I'm in dire straits to do so. My brother has agreed to take it back via quit claim deed. I know that the property taxes are against the property itself so I know those go with the property.

But with the city fines now with a law firm trying to collect a debt from me. What happens if the property goes to my brother via quit claim deed? Am I still liable for the city fines?

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Chicago, Illinois

I currently own (fully paid off) a 2 bedroom townhouse that, according to sources I've looked up, would be worth around 110K as I recently put 10K into the house to fix it up and get it in pristine condition. I live in IL btw

I have a few questions

First, What is the difference between a Home Equity Loan and a Home Equity Line of Credit? What are the requirements for them? I currently make around 55K annually and have a credit score of just under 700 (688 last I checked) but it should be at above 700 come summer 2017 when I plan on moving out.

I want to borrow 50K so that I can pay off my student loans.

I'd also like to move out and get a bigger house as I'll be getting married next year. With a Home Equity Loan or a HELOC, is it possible to rent out the property that I borrowed against and use the rental income to pay off the 50K I borrowed? I spoke to a real estate agent and I should be able to rent out my house for around 1200$ minus 400$ for tax/insurance/association fees leaving 700-800 left to go toward paying off the 50K loan monthly

Finally, if you have a Home Equity Loan or a HELOC, can you still get a mortgage for another home? I'd have around 50K of my own money (not the loan) saved up to put down on a new house.

Simple version

Have a house worth 100-110K, near 700 credit score, 55K Annual salary. Want to borrow 50K to pay off student debt.

Can I rent out home after taking out equity loan or HELOC and use rental income to pay it off?

Can I get a mortgage for a separate house that I plan to live in myself, if I have an already existing equity loan or HELOC? I'd have around 45-50K for a down payment.

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Originally posted by @Maria Stewart:

Congrats on your decision to buy a property!

I have used Hard Money to purchase and renovate a number of my rental properties (and some flips) and I work with investors who use this medium to reach their goals. I'll give you my professional and personal opinion so you can make an educated decision.

The one mistake I have seen people make repeatedly is obtaining a hard money loan without the "get out" plan. Hard money interest (as you just mentioned) is much higher than traditional. The best case scenario is to have a refinancing bank standing at the ready BEFORE you get that hard money loan. A lot of things can happen between now and 8-10 months from now. You really don't want to lose the property (especially if you renovated it) to the bank because of lack of payment). Most hard money lenders I have worked with have a 6 month loan with the option to extend 1-2 times for 1-2 months. Each extension required a sizable "fee" of $500+ (I would look into the terms carefully with hard money lender before proceeding).

My advice: Shop around with refinancing banks and tell them your situation. Find one that will refinance you with credit as is. If they can't, find out the score needed (which may be 620 for example). Only obtain that hard money loan once you have a bank that will work with you on the back end. You may also want to discuss with the refinancing bank your renovation plans and expected home value BEFORE you start to ensure you don't 1) over develop, 2) values are in line with their value numbers. Have your agent run comps in the area with features you expect to include once your renovations are complete. Some banks would even allow you to use their appraiser to value the property and the "after" renovation estimate and tentatively sign off on approving your refinance (contingent on your finances, credit score and renovation plans). Using their appraiser is important because for THAT bank, it is the only appraiser's opinion that matters.

Now once you have that in place if you want to wait to refinance for 8-10 months, fine. Me? I have done my hard money loan and refinanced the very next month after renovations are done to avoid several months of high interest payments.

Good luck!

Maria

Hey Maria, thanks for your post, I just wanted to clarify something. I own the house already and was going to take out a hard money loan so I can repair it. I bought the house in 2010 for 55K, right now according to Chase Bank and other sites it's worth 100-110k but I assume that's in fixed and great condition.

My get out plan was that after I fix up the house, I was going to sell it and pocket the difference

But that's my last resort, I'd rather a bank refinance and pay off that loan and I pay them instead for the lower interest rate

That was my plan at least, I just wanted to make sure I had the info and I'm def going to look into different banks before hand. Thanks again for the info

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All Forum Posts by: Steve Rogers

Steve Rogers has started 5 posts and replied 11 times.

Post: What is a P-Tax 203 for Illinois?

Post: What is a P-Tax 203 for Illinois?

Post: What is a P-Tax 203 for Illinois?

Post: What is a P-Tax 203 for Illinois?

Post: Question about back property taxes after quitclaim deed transfer

Post: Question about back property taxes after quitclaim deed transfer

Post: Question about back property taxes after quitclaim deed transfer

Post: Question about a quit claim in Chicago property taxes and fines

Post: Questions about Home Equity Loans/HELOC and rental properties

Post: Refinancing a hard money loan