Help with short term loan

Guest 0.10 Dollars($)

I have 2 homes that are being rented out. We can afford the minimum monthly payments, but we are having problems financially paying for the Property Taxes. I am trying to get an equity loan to help us pay for the property taxes, but I can't seem to find anybody who is willing to give us a loan since we are 80%-90% loan to value on both houses. I plan to sell the house next year once the lease agreement ends with the tenant. Can anybody lead me to the right direction?

livinginnky · Posted: Fri Oct 19, 2007 10:46 am Post subject:

Have you called the tax people and asked for a payment plan? It may be possible to set up an extended term with them so they don't put a lien on your home. The worst scenario for a homeowner is to be behind on their taxes.

Have you checked into refinancing your primary residence if one exists?

Also who have you checked with? Most lenders do not like to finance investment properties. There are certain lenders who specialize in investment properties. I am a broker and work with lenders wholesale departments so I don't have anyone you could call directly.

sara · Posted: Fri Oct 19, 2007 11:40 am Post subject: RE: how to pay property taxes

Hi Benz,

Welcome to the forums.

Even if you do not have the money to pay taxes, at least file your tax return. This itself will help you avoid paying penalty to some extent. If you do not have the total tax amount at the filing time, just pay what you can afford and the rest can be paid off in the week ahead. This is a partial payment and it helps you to avoid some interest and penalty. In 45 days, the IRS will send you a notice on payment of the remaining amount.

If you cannot pay the entire balance, just pay whatever you can and then again repay the dues within the next few weeks. The IRS will allow for 2-3 such billing cycles and then demand full payment of tax. By that time, if you can make arrangements for the tax payments, then you can possibly avoid tax lien from being out on your home by the IRS.

Take Care

Guest 0.10 Dollars($)

Thank you Eric and Sara for your prompt responses. I have a few scenarios to run by you:

1. Since i have enough credit line in my credit card, I can use that to pay for our property taxes and it maybe even better because I will not be paying for processing fees and other closing cost (related to refinancing). Plus, my credit card has a promotional program of 4.99% for the entire term of the loan if used before 11/30/2007.
The Drawback: I will need to give up one of our cars, which we pay $780/month so I can use that monthly payment for my credit card. To make it worse, we are currently negative on our car, so I don't think anybody is going to buy it for the balance, but it's worth a shot to list it for sale, I guess. My other option is to just have the car repossess and mess up my credit, which I have taken cared of for all these years. At least my wife will still have a good credit because she is not in that loan. I also figured that I can probably hire Debt Consolidation Care to help me with a Debt Negotiation on my credit card, if I do use it.

2. Should I look at Forbearance? At least until we pay our property taxes?

If there's anything else you can advice me, that would be helpful.

livinginnky · Posted: Sun Oct 21, 2007 7:30 pm Post subject:

The best advice is always to get an attorney. That is the default we all have to say, yet I really do recommend it.

I think that anything is better than owing taxes. As I stated earlier the tax man can get pretty nasty when it comes to homes. They (the tax collectors) can get there money before anyone else. They can foreclose on a home even before a 1st mortgage lender can.

IT IS NEVER GOOD TO OWE TAXES AND OWN A HOME. Because before long one or the other is going to be gone. I recommend paying the taxes and keeping your home.

Just my two cents. If I had to decide on my home or a credit card collection hurting my credit I would let the cc hurt away. I am not condoning not paying back debts but the cc company is definately going to be the last on my list of getting paid in this situation.

The cars already gone, you just haven't sold it yet. And if it makes you feel any better about the car, I drive a 1994 GMC Jimmy with 224,000 miles on it. I pay $30/ month for car insurance and obviously don't have a payment for the car. It isn't as cool as my coworkers Jaguar but I never have problems making my payments.

Jessica · Posted: Mon Oct 22, 2007 3:05 am Post subject: RE: taxes unpaid - what to do?

Eric I agree with you - nothing as bad as not paying the taxes and losing home. So, Benzfanatic, I would say that you pay off the property taxes and you might have to do that by allowing your car to be repossessed. I do understand that it will hurt your credit but nothing doing. It's better to pay down the credit card debt instead of keeping the car and piling up debts.

Try to sell the car and repay the car loan instead of allowing it to get repossessed. This will help you to avoid the bad affects of a repossession.

Regards,

Jessica.

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