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Asked by Ilona, Los Angeles County, CA Thu Aug 21, 2008

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Keith Sorem, Agent, Glendale, CA
Thu Aug 21, 2008
Just as a note, and this is not legal advice, foreclosure is a legal process. So if asked directly you might run the risk of legal entanglement by not answering truthfully. The first response may indeed correct. However, if the owner is listed as the occupant (the title shows that they owner lives on the property), then it is possible that if a legal notice is served, those serving it (usually LA County Deputy Sheriffs or process servers) expect to have the person that answers the door sign the acceptance. If you are not the legal owner then that would be apparent at that time.

It is frequent that those in foreclosure have other financial difficulties (otherwise why would they be in foreclosure?) so make sure to keep yourself out of their problems.
1 vote
CJ Brasiel, Agent, San Jose, CA
Thu Aug 21, 2008
Llona -

I would assume that the owner is claiming the home as a primary resident for the purpose of refinancing/loan modification or for tax purposes. If you own a home and have lived in it 2 out of the last 5 years you can claim up to $250,000 tax exemption on any proceeds of the sale.

In the cases of the foreclosure, any debt forgiveness would be listed as capital gains and there could be tax liability for the owner/seller.

Web Reference:
1 vote
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