A lien is a notice attached to your property which puts everyone on constructive notice that a creditor has a claim. A lien is typically a filed and recorded in the county public records (if involving real property) or with the secretary of state (if involving personal property). Why does a lien help a creditor? Well... in order to sell or refinance the property, the borrower's lender is going to require clear title on the property as a prerequisite to the loan. Thus, a lien existing on your house has the negative effect of clouding the title and thus prevents you from selling your property. In order to clear title on the property, you must pay off the lien and have a release filed in the county public records putting everyone on notice of the discharge of indebtedness. If the lien is not paid off, certain lien holders can choose to foreclose on the property and recover what they owe. …show more content…
IRS Lien: An IRS lien is filed by the federal government for the failure to pay your taxes. If you happen to have equity in your property, the tax lien can be paid out of the sales proceeds at the time of closing. If the home is being sold for less than the lien amount, the taxpayer can request the IRS discharge the lien to allow for the completion of the sale. The taxpayer can also can ask that a federal tax lien be made secondary to the lending institution's lien to allow for the refinancing or restructuring of a
We started our research by reading through the discussions posted within the Topic of Research. From there we read the recommended pages of the text, 20-2, 20-3, and 20-4 regarding the liquidation process. Using the CCH Tax Research Network, we used a selected content search, Federal Tax--Federal Tax Editorial Content--Standard Federal Tax Reporter (2014), to research the following laws: Section 331(a), 336(a), and 6901(a). We also used the Citator in CCH to review the facts and decisions shown in the liquidation cases of Kennemer and Al Zuni of Arizona.
Predatory lending usually occurs when financial institutions take unfair advantage of consumer’s financial needs by extending credit with terms that compensate them over and beyond the credit risk. Predatory lending comes in different forms, but always involve the consumer paying high interest rates and exorbitant fees. Some predatory lending practices include:
Collateral for the defaulted loan. Distressed real estate involves making a distressed purchase. According to Financial Crisis (2011), “[A] distressed purchase is whereby the property owners are usually in a foreclosure/short sale situation.” Foreclosure applies to a residential real estate loan in which a bank or creditor repossesses a home because of nonpayment. The institution will legally possess the right to resell the property as collateral for the defaulted loan. The selling price can be sold at a price equal to or greater than the original loan. The reason distressed properties can be bought at a lower price is the institution has already received a series of payments toward the original home loan. In many situations the lender can sell the house for a lower cost than the normal market value, leaving the buyer the opportunity to make a purchase at a lower selling price than market value and reselling the property at a profit (Demand Media, 2011).
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility bills and rental expenses.
) A mechanics lien are commonly used by subcontractors and suppliers, in this case Rupert would be the subcontractor for Clyde. Clyde could be force to sell his home to pay for the mechanics lien, or pay twice as much than he was originally obligated to pay because of legal fees accrued. Rupert cannot enforce the $200 tune up through a mechanic’s lien, but he can place a lien on Clyde’s property for the $20,000 promised to build the detached garage. This lien places a legal claim against the property that has been built, improved or remodeled. In order to collect the $200 promised for the tune up on Clyde’s car, Rupert will have to file a separate case through small claims court to try and recover the $200. The fees to file this case could
A large argument for why the illegal immigrants should be deported is the fact that they don’t have to pay taxes, and that they get benefits from the government. This in turn is taking away from our government’s resources. However, the US Internal Revenue Services (IRS)
Things have been really looking up for Teresa Giudice late, but now another tax lien will have her scrambling for money once again. This star of The Real Housewives of New Jersey may never be able to pay off her debts the way that things are going lately. Radar Online shared the details about the new tax lien put on Teresa that has her working to pay something else off again.
In the United States we face many issues such as poverty, death, health, and many others. But the issue that is currently effecting society the most is foreclosure. What is foreclosure? How has it effected society?. The definition of foreclosure is a legal or professional proceeding held by a lien holder which is a court order termination of equitable right of redemption amongst housing properties. Foreclosure has not just effected us financially, but has effected society physically.
Internal Revenue Service. Report of Income Unreported on Individual Income Tax Returns. Report No. 1104. Washington, D.C.: Government Printing Office, 1979.
The tax system is an important part of our country's method of ensuring that government leaders are paid, roads are maintained, and we have a well-armed military to defend all of our citizens. But that doesn't stop the millions of people who live in the United States from dreading the complicated procedures set up by the Internal Revenue System (IRS) that they have to go through to pay their fair share of the expenses each year. Part of the reason for this is that there are so many myths surrounding the process. Unfortunately, those who believe in them end up with costly fines and legal problems though. So to help clear things up, the following is a list of five of the top tax myths and the real truth behind them all.
A mortgage is a form of debt, secured by the warranty of a specific real estate property. The borrower is required to pay back the debt in predetermined payments. The most common reason for acquiring a mortgage is to purchase real estate when it cannot be paid for up front. The homebuyer, in a residential mortgage, pledges their home to the bank. Over a period of years, the borrower pays back the loan with interest. Once the mortgage is paid in entirety, the owner retains the property free of any charges. However, in case of foreclosure, the bank has an entitlement on the house, as a form of insurance should the buyer default on repaying the mortgage. The bank can then sell the house, and use the capital to pay back the remaining mortgage.
The study defines “default” is a risk to the repayment history of borrowers where the borrowers are missed at least three installments in 24 months. This showed a symbol and indication of borrower behavior will actually default to cease all repayments. This definition does not mean that the borrower had entirely stopped paying the loan and therefore been referred to collection or legal processes; or from an accounting perspective that the loan had been classified as bad or doubtful, or actually written-off (Pearson & Greeff, 2006).
Taking all the necessary and precautionary steps to prevent yourself from being a victim of identity theft does not guarantee that you will indeed be safe from this crime. Why so? The answer is simple: identity theft operates in various ways that can take advantage of your financial and personal information.
The most common purpose of a home loan is to provide the funds a buyer needs to purchase a home. Home equity loans allow a homeowner to borrow against the difference between the home’s value and the current loan balance, or equity. Investor loans permit buyers to purchase homes as rental properties or to fix up and sell at a profit.