Tim Stuart

Joanne,
Good luck with the courthouse steps auction. You will need cash for that sale and you are only buying the loan on the property not the property. Please do your due diligence if you are trying to buy at the courthouse steps. There could be another loan on the property. - Mon Nov 3 2008, 18:30

Chris,
We could market the properties to get buyers to your property through the Auction method of marketing to get the fair market value on the properties. - Mon Nov 3 2008, 18:20

Crystal,
Yes, we have years of experience buying and selling through the Auction process. We conduct Real Estate auctions and would be willing to share any information that you would like to know! The auction process provides a win-win situation if done by a professional and ethical Real Estate Auctioneer.
Feel free to check out either of our websites. TimStuart(dot)com and the site listed below.
There have been some negative reactions to the auction method as conducted in the PDX area lately. Not all Auction companies conduct themselves in the same manner. We are a professional group of Auctioneers who list and sell real estate at auction on a monthly basis. We conduct auctions on the Oregon Coast as well as the Portland Metro area. Give us a call and we can discuss how we can work with other brokers to get properties sold. - Mon Nov 3 2008, 18:15

Toby,
Are you looking for already foreclosed properties? If you are then,
there is no backdoor or short cuts to a list of foreclosrues. The Banks or Lien holders who bought the property back on the courthouse steps will list those properties once they go through their decision making processes like whether to improve them or list "as-is" and they determine that after getting thier own BPO (Brokers Price Opinion) and estimates of repairs if any needed. There are allot of properties out there that are REO (Real Estate Owned/Bank owned) and they are listed with traditional listing agents. Any agent that has access to the Multiple listing servicecan help you with those!
We sometimes get pre-foreclosre properties that we auction to the highest bidder once we get the banks to agree to a number.

If you are looking for properties that have not yet been foreclosed those are typically done on the courthouse steps and you have to have cash for those properties (no financing allowed) - Mon Nov 3 2008, 17:52

Diane,
Bill brought up a good point.......The debt foregiveness for tax purposes has to meet the same guidelines as the one for Capital Gains (tax free sales), I appologize if that was not clear. You have to have that property as a main residence for 2 of the last 5 years. Then the new law applies... below HR bill 3648 from http://www.realtor.org/subprime_lending.nsf/Pages/mort_cance…

Supbrime Lending
Mortgage Debt Cancellation Relief - H.R. 3648 - Public Law 110-142 General Information and Provisions

Individuals who are relieved of their obligation to pay some portion of a mortgage debt on a principal residence between January 1, 2007 and December 31, 2009 will not be required to pay income tax on any amount that is forgiven.

General Provisions of Public Law 110-142:
No income limitation: All borrowers receive the relief, no matter what their income.
Dollar limitation: No more than $2 million of mortgage debt is eligible for the exclusion ($1 million of debt for a married filing separately return).
Relief applies only to an individual's principal residence.
The forgiven mortgage debt must have been secured by that residence.
No relief is available for cash-outs, whether the cash-out takes the form of a refinanced first mortgage, a second mortgage, home equity line of credit or similar arrangement.
Eligible debt is what is called "acquisition indebtedness." This is debt used to acquire, construct or rehabilitate a residence.
Refinanced debt qualifies, so long as the debt does not exceed the original amount of the debt. (Same rule as Mortgage Interest Deduction)
Home equity debt (or second mortgages) qualifies if the funds were used to improve the home. (Borrower must have adequate records, as under current law.)
See cash-outs, above. No amount of a cash out may be treated as acquisition debt.

Additional Provisions of Public Law 110-142:
Refinanced Mortgages: The relief does apply to refinanced debt in some circumstances. The rules seek to assure that any debt eligible for the relief is directly related to the acquisition or improvement (such as rehabilitation, expansion, renovation, reconstruction) of the principal residence. Debt used for furnishings (i.e., any movable property) in the home is not eligible for the relief. When the proceeds of any refinanced debt is used for any purpose other than acquisition or improvement, those proceeds are not eligible for the relief.

Principal Residence: A principal residence is defined in the same manner as the rules that apply to the capital gains exclusion on the sale of a principal residence. An individual may not have more than one principal residence at any given time.

Second Homes: As a general matter, the relief does not apply to any debt forgiveness on any mortgage for any second home of the taxpayer. However, if a taxpayer uses a residence (other than his principal residence) solely as an income-producing rental property, already-existing relief provisions might apply, depending on the taxpayer's situation. If the second home property was acquired as a speculative investment (such as for resale rather than rental), relief provisions are unlikely to be available.

In all events an individual who is in a short sale, foreclosure, workout or similar situation on a residence (including condos) other than his principal residence should consult a tax adviser to determine what, if any, relief provisions might be available.

Mortgage Insurance Premiums: The deduction for mortgage insurance premiums is extended through tax year 2010. Income limitations on the deduction will continue to apply.

Surviving Spouses/$500,000 Exclusion: In some circumstances, a surviving spouse is denied eligibility for the full $500,000 exclusion on the sale of his/her principal residence. This most frequently occurs when the residence is not held in joint ownership at the time the spouse who is not on the title dies. In that case, the deceased spouse had no ownership interest, so there is no basis step-up on that half of the property. The surviving spouse is thus eligible only for an exclusion of $250,000. (Had the home been sold during the deceased spouse's lifetime, the full $500,000 exclusion would have applied, so long as they filed a joint return.)

Challenges for the surviving spouse are compounded when this circumstance occurs late in the year. The surviving spouse is often unable to sell the property within the same year that the spouse died. This legislation provides that a surviving spouse may claim the full $500,000 exclusion not only in the year of the deceased spouse's death, but also during the two years after the spouse's death.

Second Homes Converted to Principal Residence: The new law signed by the President does not include a provision limiting the application of the $250,000/$500,000 exclusion when a second home is converted to a principal residence and late - Thu Sep 25 2008, 10:51

You are better off selling in a short sale scenario. If the bank allows a short sale on your property they have to relieve you from the debt and you will not have to pay taxes on the difference. There was a bill passed late 2007 that will allow you to escape any short fall that the bank allows or accepts in the short sale. The same does not apply if you let them foreclose. - Wed Sep 24 2008, 14:45