Posted by Bill H on March 30, 2008 at 18:11:34:
I understand Penny. My question was and still is “Cover what foreclosure?”
Unless the property has matured to him their is no foreclosure and if it has he does not have to immediately rush out and start the foreclosure and if he does it should be just a matter of filing the court papers…so…I am wondering what is the big problem?
Good Luck,
Bill H
Tax Lien Help Needed - Posted by Carlos
Posted by Carlos on March 28, 2008 at 10:46:27:
I bought some TLC’s in Florida for my son’s CESA account through Equity Trust. They are coming due next month. Just one problem. I don’t have enough cash in the account to cover the foreclosure. I’ve fully funded it for all prior years.
So, I sent Equity Trust a check for $4000 to cover a contribution for 2009 and 2010. They sent it back, saying they can’t accept it.
Now what???
Re: Tax Lien Help Needed - Posted by Bill H
Posted by Bill H on March 28, 2008 at 20:26:18:
I bought some TLC’s in Florida for my son’s CESA account through Equity Trust.
Who/What/Where is Equity Trust?
They are coming due next month.
What is coming due next month.?
Just one problem. I don’t have enough cash in the account to cover the foreclosure.
Should not cost anything much to file the foreclosure.
I’ve fully funded it for all prior years.
Funded what?
I ask all the questions because FL is a bid down state and you would bet minimal interest on your $$$. FL has, as I remember, a two year redemption period. Durng that period you can step up and pay the taxes to keep them current or let someone else do it for you.
At the end of the two year period you have to file foreclosure to get the property. The only costs involved should be the prior years taxes and the cost to file foreclosure.
Please clarify a bit and I will try and assist you.
Good Luck,
Bill H
Maybe different from one county to the next - Posted by Carolfl
Posted by Carolfl on March 28, 2008 at 18:38:35:
In our county (POLK) the certificate holder may call for a sale as early as the 3rd year, or as late as the 7th year. Don’t know what you might need to win the bid, but the worst that would happen is that the acct would reap the interest and you would move on to another investment.
Carol
Re: Tax Lien Help Needed - a few answers - Posted by Penny
Posted by Penny on March 30, 2008 at 14:47:46:
Bill,
Equity Trust is one of the more popular companies being used these days for self directed IRAs to invest retirement funds in non-stock market investments. Entrust and Pensco also have good reputations.
If I read the post correctly, it looks like tax liens were purchased with an IRA, but the IRA lacks sufficient funds to cover a foreclosure. Since you can’t add after tax funds to cover without running into prohibited transactions in the IRA investment rules, I think he is looking for ideas on how to fund the IRA or wants to know what happens if he can’t cover the foreclosure.
For the funding, I think he is speaking to the IRS allowable annual contributions to an IRA. It sounds like the annual contributions allowed aren’t enough.
It sounds like you are more familiar with the tax lien purchase process, so hopefully this will help provide more insights for you to help him.
Penny
Tax law is made by the state, not the county - Posted by Bill H
Posted by Bill H on March 29, 2008 at 19:09:03:
Not possible. Tax laws are state promulgated…not county by county.
FL is a bid down state so I doubt you would make anything significant on the interest.
Read the statutes.
You obviously have just enough education to be dangerous.
“It is better to remain silent and be thought a fool than to open one’s mouth and remove all doubt.”
Re: Tax Lien Help Needed - I didn’t read correctly - Posted by Penny
Posted by Penny on March 30, 2008 at 15:01:11:
Ooops. I just noticed he wrote CESA, not IRA - I think this is a college education savings account, possibly a Coverdell? If so, I believe the annual contributions allowed are only a couple of thousand per year. I have 529s for my kids, so I’m not up on the other types of accounts.
As I mentioned before, Equity Trust provides trustee services for non-traditional investments.
I think where he is getting stuck is that the limitations on contributions that can be added to the CESA account don’t seem to be enough to cover the foreclosure.