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Inherited a House? Here Are Your Options!

August 12, 2021 • Matthew

So, you’ve inherited a house?

Do you find yourself thinking, “I inherited a house, now what?”

First of all, congratulations! We understand inheriting a house might be a stressful situation for some, but you don’t need to worry. We broke down your options and explored pros and cons. We also provided further steps you need to take after you make your decision.

So let’s go!

Inherited a house? Here are your options!

First thing’s first.

HuffingtonPost states these are the questions you need to ask after you inherit a house:

  • What condition is the house in?
  • How much will my expenses be?
  • How much is the house worth?
  • Should I move in, rent it or sell after I’ve inherited a house?

So, what are your options?

Sell when you’ve inherited a house!

Inheriting a house comes with plenty of unwanted headaches, especially if it’s something you didn’t want to happen. The first thought most have is to sell the house.

What to do when you've inherited a house?

RealtyTimes states that the absolute first step you must take if deciding to sell your inherited house is t0 seek legal action. Are you selling an inherited house to a sibling, at a loss or just wanting to sell? There are a few questions that should be addressed during this process, including the following:

  • Who will take care of getting the house ready for sale?
  • Who is responsible for negotiations and real estate agent hirings?
  • How will you divide the expensive?
  • Who is responsible for caring for the house while it is on the market?

You can also sell your house with a realtor without making repairs, or sell to a cash home buyer. We offer you both of these options! The best part is that you can get a cash offer in just 24 hours – your inherited home can be sold faster than you think!

Selling the house fast would be the best option for those who have no intention of moving in or renting it. There are a few pros as well as cons that come with this decision.

What options do I have when I've inherited a house?

Pros of selling an inherited house:

  • It can be sold FAST!
  • Paying in cash and having flexible payment options.
  • Not having to worry about the future of the property.

Cons of selling an inherited house:

  • You will have less control over who gets your house.
  • You might not be able to sell for the true value of the house.

If you’re considering selling, read this article: how to sell an inherited house in San Antonio.

Rent when you’ve inherited a house!

Another option to consider is to rent your inherited San Antonio house. If the house is to be rented, the heirs might ask:

  • Who will collect the rent?
  • Who takes the maintenance calls from tenants?
  • Where will the rental deposits and payments be held?
  • How will the income after costs be split among the heirs – each month, quarterly or annually?

Cons of renting an inherited house:

  • NextAvenue states that:”For tax purposes, the house (not the land) is considered a depreciable asset and a certain percentage of its value can be deducted annually.”
  • It can often be time-consuming.
  • You’ll need to make sure your tenants are a perfect fit for the house.

Pros of renting an inherited house:

  • Steady income on a long-term basis.
  • Creating networking relationships with the tenants.
  • Adding your management skills to your resume.

Move into your inherited house!

house

This option might be an obvious one – you could move when you’ve inherited a house and call it your new home.

The question that comes with moving into your inherited house is what to do with your current house. The same answers as above apply – you could easily sell it or rent it if you wish to do so.

Before you do decide to move into the inherited house,HouseLogic suggests to do the following:

  • Investigate the mortgage.

Especially if you’ve inherited a house from your parents at a loss – be aware of the current mortgage situation and know how to deal with it.

  • Physically check the house.

Is the property furnished or unfurnished? Take note of what needs to be fixed and what you want to fix. How does the season change affect the house? Do you like the surrounding area? See if all conditions meet your criteria before you decide to move in. Gather all necessary paperwork on the house and its appliances.

sell inherited house

If you inherited a house from your parents, you need to address the following questions:

  • Are you moving in alone, with your siblings or other relatives?
  • If the latter two, how will you split the costs?
  • What do you want to do with your current property?

Don’t forget to check out Good Housekeeping’s moving checklist – 9 Smart Things to do Before You Move

So, what’s it going to be? These decisions take time and planning. Make sure you check your budget, consult with professionals and get all your documentation ready.

Decided to sell? Give us a call and we will provide you with the best cash offer in just a couple of days!

 

Get a Cash Offer Within 24 Hours

Lucky for you, we buy houses in San Antonio. We work fast to get you a no-obligation cash offer for you house within 24 hours.

Our customers comment all the time about our soft approach. You won’t get a hard sell with us. If you are not completely satisfied with the offer we make to buy your house, you don’t have to accept it. No charge. No fees.

We’d love to talk to you today about the house and your situation. We’re here to help even if you decide not to sell your house.

Give us a call at 210-596-9669 or fill out the form below to get started. We look forward to talking with you.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

I’m Facing Foreclosure What Are My Options?

August 5, 2021 • Matthew

Homeowners have several options when facing foreclosure.

facing foreclosure options

Loan modifications, secondary loans, borrowing from acquaintances, filing for bankruptcy, and selling are all possibilities with varying success rates.

But all foreclosure options aren’t equal. Some common methods used to avoid facing foreclosure can leave the homeowner incurring a larger debt. Other recommended strategies used to stop foreclosure require third-parties to be sympathetic to the foreclosure plight.

If halting foreclosure is a homeowner’s goal, the best foreclosure option might be the least likely.

Modifying Your Loan When Facing Foreclosure

facing foreclosure loan

One of the most common foreclosure options homeowners consider when facing foreclosure is modifying their pre-existing mortgage. This method consists of contacting your mortgage company and requesting one of the many loan modification programs currently out there. While this method is attractive due to its lack of major lifestyle intervention and the ability to keep your home, many homeowners can’t meet the strict modification regulations to keep the foreclosure process at bay.

Typically, loan modifications change the terms initially instituted by a loan agreement between a borrower and a lender.

The lender can change the mortgage payment multiple ways: by lowering the interest rate or late fees, extending the loan term, or reducing the original amount of the agreement. The goal is the same though. Loan modifications are used strategically to lower the monthly payment plan so the homeowner can keep making payments.

It’s an effective solution as long as a borrower is willing and able to continue payments.

There are several loan modification programs to assist homeowners in making those monthly payments. One of the most popular is the new Home Affordable Modification Program, enacted by President Obama. Also known as the Homeowner Affordability and Stability Plan (HASP), it allows homeowners to refinance to reduce monthly payments. This program implements a special Making Home Affordable loan modification that can be applied by lenders for homeowners at risk of facing foreclosure.

HASP, as well as most other loan modification programs, comes with mountains of paperwork and a hefty application process. To begin, a lender will ask the homeowner for a set of documents which will be assessed for general qualification. This will include a hardship affidavit in which the borrower explains the set of circumstances that led them to the inability to pay the current mortgage amount.

It also must include the reasons way the borrower will be able to pay the proposed modified mortgage. These hardship letters can be tricky and time-consuming to write and are not often accepted when considering a home loan modification.

Borrowing Money

money back when facing foreclosure

Other common foreclosure options include borrowing money. Homeowners threatened with facing foreclosure need money fast to keep the creditors satiated. Even with a successful loan modification, borrowers need to pay their monthly payments. Often times, cash-strapped homeowners will seek help from friends and family.

Borrowing a large amount of money from friends and family is a bad idea though, especially when your home can be seized by the bank at any time. Money Crasher’s Casey Slide compiled a list of reasons why a person shouldn’t lend money to family and friends.

However, this list can be used to argue why homeowners should avoid borrowing from their loved ones too. Some of Slide’s complaints included people’s ability to be unreliable, borrowers feeling like a servant to the lender, and ending an important relationship due to a loan agreement gone wrong. At best, receiving a loan from a friend or family member will leave a homeowner indebted; at worst, it can leave them with an eviction notice and a failed relationship. Before borrowing money from loved ones, consider other foreclosure options.

Homeowners also choose to borrow money from other loan-offering entities to offset any arrears accrued by their missed mortgage payments. Attempting to pay off a loan with another loan can be dangerous for a homeowner’s credit and lead to a larger debt. It’s an ill-advised method to avoid facing foreclosure.

Facing Foreclosure & Filing Bankruptcy

facing foreclosure options bankruptcy

Many homeowners in financial distress believe the best foreclosure option is filing for bankruptcy to stop foreclosure.

This is due to the numerous misconceptions associated with bankruptcy relief. These misconceptions allow homeowners to believe several fallacies, including bankruptcy will stop you from facing foreclosure, it’s a simple process to file, and that filers will be able to keep their home without paying what they owe on their mortgage. Unfortunately for homeowners, these blanket statements are simply untrue.

Although declaring bankruptcy will buy time during the foreclosure process, it won’t stop the process completely.

If a homeowner files for bankruptcy during the foreclosure process but before the bank sets an auction date, homeowners will be granted an automatic stay. This motion stops lenders from collecting a homeowner’s assets to repay what they owe on the mortgage.

Although an automatic stay is initiated as soon as the borrower files for foreclosure, lenders have rights to appeal this motion. Mortgage companies may file a relief from stay, especially if the borrower has already stopped making monthly mortgage payments. If the bankruptcy grants the lender’s motion, the mortgage company will be able to continue with the foreclosure process and limit the homeowner’s foreclosure options.

A major hassle when filing for bankruptcy are the laws and restrictions associated with the process. Even though all homeowners are allowed to seek the bankruptcy option, many are unable to file due to recent laws that were passed by Congress.

The new bankruptcy laws require homeowners to receive credit counseling from creditors approved by the United States Trustee’s office before filing a bankruptcy case. If the counselors believe a borrower can meet monthly payments due to any number of factors, they’re required to submit their findings to the bankruptcy court. These preliminary findings can devastate a borrower’s bankruptcy case while forcing homeowners to continually pay for a mortgage they can’t afford.

In addition to mandatory credit counseling, homeowners must pass a stricter means test to qualify for bankruptcy. The newest bankruptcy laws restrict some homeowners with higher incomes from filing for Chapter 7 bankruptcy. Whereas outdated bankruptcy laws allowed homeowners to file for either Chapter 7 or Chapter 13 without restraint, the new regulations require homeowners to pass a means test if a filer’s current monthly income is greater than the median for a household of equal size in their state. This addendum to the already tedious bankruptcy laws are costly to homeowners in need of speedier foreclosure options.

Whether it’s a Chapter 7 liquidation of all debts or a Chapter 13 repayment plan, filing for bankruptcy is not a permanent solution to avoid facing foreclosure. Homeowners are not guaranteed to keep their home while risking seven years of poor credit. For borrowers that need to stop foreclosure immediately, this is not the best foreclosure option.

Selling Your Home Fast

house for sale when facing foreclosure

One of the best options a homeowner has when facing foreclosure is selling their home before an auction. This allows the homeowner to pay off their mortgage and other secondary loans associated with the house, while pocketing any extra profit made from the sale. If the threat of foreclosure is imminent, selling your home as quickly as possible is the best way to avoid facing foreclosure. When a homeowner sells their property, they avoid the credit-destroying experience of foreclosure while able to pay off any lingering debts that caused their initial financial hardship. Consider a cash home buyer to sell immediately, if you’ve already received your Notice of Default. Selling before the lender regains ownership saves the homeowner time and money.

Foreclosure help comes in various shapes and sizes. While asking for help from your mortgage lender or family can be successful, homeowners are often put in precarious financial situations worsening their debt. Filing for foreclosure may also help some borrowers in need, but the heavy restrictions and general misconceptions make it an unreliable option. One of the best options when facing foreclosure is selling your home before auction and paying off your mortgage. Selling a foreclosed home can be simple and lucrative if sold to the right buyer. Weigh your options before attempting to stop foreclosure.

Get a Cash Offer if You’re Facing Foreclosure

We buy houses in Texas and can close very fast. This gives you an option if you are facing foreclosure. We are able to buy the house completely as-is so that you don’t have to make repairs or wait for them to be made.

You won’t have to wait for a qualified buyer to come along because we are the buyer!

We make cash offers within 24 hours and there is no-obligation or fee for us to do so. If you like the offer, we move forward. If you don’t, we won’t. Simple as that.

Give us a call at 210-596-9669 to see what can pay for your house today.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Taxes for Selling Rental Property in Texas

July 29, 2021 • Matthew

Understanding the taxes for selling rental property is an essential step to know when you’re thinking about selling a rental house. Selling a rental property comes with many steps, questions like “should I sell my rental property?”, and complications which may also involve tax implications. The taxes for selling rental property in Texas can be incredibly confusing for plenty of reasons, but don’t worry – I’m here to help you out. In this article, we’re going to look at taxes on selling rental property in Texas, how tax sales work, how to avoid paying capital gains, capital gains tax on sale of rental property, capital gains tax on sale of your second home and more.

Let’s go.

How taxes for selling rental property in Texas work?

If you’re completely new to the real estate business and taxes on selling rental property in Texas, you might be asking yourself how taxes work in the first place.

Calculator, paperwork and pen. Taxes For Selling Rental Property in Texas

Here’s how:

HowStuffWorks states that each property is divided into assessment areas or assessment units.
The value of a property is determined by a tax assessor through property tax assessment.

“For example, the Rose City government has a $6 million budget and receives $3.5 million in sales tax revenue and state aid. Rose City needs to raise $2.5 million in property taxes to cover the budget. $6,000,000 – $3,500,000 = $2,500,000”

Some of the property cost can be recovered with depreciation.

What is depreciation?

10 and 20 euro bank notes and coins. Taxes For Selling Rental Property in Texas

Depreciation is a tax deduction which allows you to recover costs of a particular property.

Residential rental properties can be depreciated over 27 ½ years with MARCS system or 40 years with an alternative system.

You cannot claim depreciation.

What happens if property taxes for selling rental property aren’t paid?

If your property taxes aren’t paid, you could face a fine and have your property seized. Not paying your taxes could also reflect badly on your credit score, making it difficult to purchase further properties. Please consult with the IRS Publication 594.

How to avoid paying capital gains?

Forbes identifies 14 ways to avoid paying capital gains when it comes to taxes for selling rental property in Texas. I’ll cover 5 most important ones.

Stock exchange
Those with a good credit and appreciated securities can apply for a stock exchange with services who trade their stock with a diversified portfolio (however, equally valued). Who uses this option? Investors who are looking to avoid paying large capital gains on taxes for selling rental property in Texas.

Health Savings Accounts
Contributing to health savings accounts will also mean you are able to receive a tax deduction. Please note that you might have to do more paperwork and no economic value can be gained from this.

Move to a lower tax bracket state
State taxes are different and depending on where you live, you can avoid paying state tax or lower it.

Give stocks to family members
You can give some of your stocks to family members in lower tax brackets. This is one of the most beneficiary ways to avoid paying capital gains.

1031 exchange
What is 1031 exchange? It’s another way to avoid paying capital gains – within 180 days of the sale you can roll your proceeds into a similar investment type. Please note that the rules to this exchange are very complex, however, by doing the 1031 exchange you can without a doubt avoid paying capital gains.

Coins.Taxes For Selling Rental Property in Texas

How to make capital gain or capital loss when you sell?

Capital gains or capital losses are made everytime you sell a rental property, unless the property was bought before 20th September 1985. These gains or losses can also be made from capital improvements since the acquired date .

The amount of your capital gain depends on the capital gain tax rate and as a result, according to Forbes, many gains are, in fact, never taxed.

If you co-own a property, capital gains or losses are made according to your property interest.

Capital gains or losses can be dismissed in the case of a rollover.

What is a rollover?

Rollover (disregarding a capital gain) applies in the case of a destroyed property or property which was transferred to a former spouse.

I need to sell my second house – what are capital gains tax on sale of second home?

The capital gains on sale of second home depend on the state you live in and how long you’ve lived in the house. Qualifications for partial exclusions are favorable, especially in the cases where you have rented your property for a certain amount of time while treated it as a residence prior to that.

The duration of the time you have to live in your second home and then rent it out depends on your state – for more information, contact your lawyer to make sure you receive correct information.

Sell Your House to a Cash House Buying Company

Ready to sell your house FAST?

Matt Buys Houses TX is a cash buying company, ready to take your property off your hands. The property you want to sell needs repairs? Doesn’t matter – we’ll be happy to sell it regardless of its state. Give me a call and you will receive a cash offer in just 24 hours. Your house can be sold in a week!

If you need to sell your rental house now, and would like to get a no-obligation cash offer, call us now at 210-596-9669. Whether you decide to sell your house to us or not, we would like to help answer questions you might have about the process.
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

How to Sell an Inherited House in San Antonio, TX

July 22, 2021 • Matthew

How To Sell an Inherited House Made Simple

Inheriting a property is a bittersweet experience. Although it might mean acquiring a house that could drastically improve your life, it also means that a loved one has passed. There’s a lot to consider if you don’t want it, like knowing if you should sell an inherited house or not.

Grieving is a difficult process, and dealing with your newly acquired property might be the furthest thought from your mind. However, it’s important to manage your inherited property before it becomes not only an emotional stress factor but a financial one too. Knowing how to sell an inherited house doesn’t have to be an added stress.

sell an inherited house

The Center of Wealth and Philanthropy, at Boston College, projects that the baby boomer generation will inherit upwards of $27 trillion over the next four decades. A large portion of that figure includes inherited homes.

But the sudden acquisition of an inheritance can leave you with many questions. As a benefactor, you might ask yourself: what do I do when I inherit a property? What kind of taxes do I pay after claiming the house? How do I sell an inherited home?

How To Sell an Inherited House – Your Options

If you are in a position where you need to sell an inherited house, you’ll need to know your options.

An heir has three options when deciding what to do with their inherited home: they can rent out the property, move into it, or sell. Although it’s a personal choice and all options have their positives, selling an inherited house will provide the seller with the ripest rewards.

Renting out an inherited property may help you keep the home in the family, but it also comes with a hefty cost and high risk.

Rental properties are hard to maintain: a landlord needs to interview prospective tenants, collect rent, pay for upkeep, and be on-call for complaints often 24 hours a day.

That’s why many landlords hire property management companies, especially if they live too far from the rental property. These companies can be unreliable, neglectful, and ask for up to 30% rent while managing.

They’re an unnecessary risk when handling your loved one’s home.

how to sell an inherited house

You might want to move in if the inherited home is a vast improvement to your current residence. However, with an upgraded home comes an upgraded price tag. Living in your inherited property may result in an increase in property taxes. Since the house more than likely has appreciated when considering the stepped-up value (the fair market value of the property at the time of the previous owner’s passing) you’ll have to pay more to live there.

Generally the best option is to sell an inherited house when dealing with a new property. Once the home sells, a benefactor will be able to pay off the home’s mortgage, will save money by avoiding capital gains taxes, and may even see a profit of their own.

Before the Sale

Before selling an inherited house, J.D. Esajian, a Fortunebuilders.com contributor, wants you to be realistic about your new house. “Inheriting a piece of property isn’t anywhere near as straightforward as you would imagine,” he warns. There’s a lot to consider when accepting an inheritance. Becoming acquainted with the property, assessing the housing market, and hiring help when needed are all viable considerations before you sell an inherited house.

red door on an inherited house

First, know where you stand. Familiarize yourself with the inherited home’s status. The property might have been the home where you spent most of your adolescence, but you might not know everything about your newly acquired home. What state are the major home systems (septic, HVAC, etc.) in? Does the property have any major liens? How does it compare to other homes in the neighborhood? Knowing the answers to these questions will help you estimate your inherited property’s worth.

Assessing the current market might also help you decide how to sell an inherited home in San Antonio, TX. If the market is favorable and the house has appreciated, you’ll most certainly receive a sizable profit at closing. Also, you won’t need to worry about the selling an inherited house taxes. Any appreciation gained during your loved one’s life is forgiven and you’re only taxed on appreciation gained after inheriting the property. “Unless the property goes up in value very quickly or you hold the home for a long time, you most likely will have very little tax liability,” adds Demand Media’s Solomon Poretsky.

Hiring a professional organizer to help empty out your inherited home while salvaging sentimental pieces is a necessary step before the sale. After a loved one passes, it’s hard to imagine going through their items and sorting out what’s valuable enough to keep and what needs to be donated or trashed. Yet, the property needs to be sifted through and cleaned before making any kind of sale. Don’t carry the emotional burden alone; hire someone to help clean out belongings and depersonalize rooms to get your inherited home in selling condition.

inherited house in san antonio

Realtors, Estate Sales, or House Buyers

So, you’ve decided to sell, researched your inherited home, and cleaned out your loved one’s property. Now, what? According to Amber Keefer, an eHow blogger, and real estate expert, there are three options in when to sell an inherited house: listing with an agent, sell at an estate sale or auction, or utilize a cash buyer.

Hiring a Realtor is common practice when selling an inherited house. Yet, it may not be your best option. Since Realtors cannot guarantee a sale, a home can stay on the market for months. This requires money and time to keep the house in showroom condition. Unless you can afford several months’ worth of insurance, utilities, and tax, not to mention Realtor fees at closing, using an agent to sell an inherited home is out of the plan.

It’s also risky believing a real estate agent’s honest opinion about what your inherited home is worth.  “There is always the concern that real estate agents might just be telling you what you want to hear in order to get another listing inked,” Esajian says. Your loved one’s property will not be handled with care if considered just another sale by an unsympathetic agent.

trying to sell an inherited house

Estate sales offer similar problems when using them to sell an inherited house. There’s no guarantee of sale, and every day not sold means bleeding your wallet dry. Also, auctioneers are likely to mishandle your inherited house if not managed properly. However, unlike hiring a realtor, estate sales mean you earn less money upon purchase. Although the house might sell quicker than if sold by an agent, you’ll lose out on a significant sum.

Sell an inherited house to a house buyer is the quickest, simplest option if available.

House buyers usually offer cash for homes, allowing you to avoid prolonged time on the housing market. Sometimes they cover selling costs to expedite the sale.

Forego spending money on sprucing up your loved one’s home and fixing any major repairs; house buyers buy as-is. They also allow you to skip using a realtor and communicate with you directly. If you have questions about the selling process or want to make sure your parents’ home is getting the attention it deserves, house buyers are more open to assuaging whatever fears are pestering you. Unlike many realtors, house buyers have experience with inherited property and know how to be sympathetic to grieving homeowners.

Selling an inherited house can be emotionally and fiscally daunting, even in San Antonio, TX. Don’t make it harder than it already is. Considering your options, familiarizing yourself with the market, and sorting the estate before a sale will reduce time on the market. Deciding to sell gives you options, but accepting a cash offer is the surest way to have your loved one’s home taken care of and sold with ease.

We Are Cash House Buyers

Matt Buys Houses TX is a cash house buyer in San Antonio, TX. We’ve been buying houses for many years and have helped hundreds of homeowners sell an inherited house fast.

We buy San Antonio houses and want to make an offer to buy your house. Give us a call today at 210-596-9669 to get started. You can have a no-obligation cash offer for the house within 24 hours.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Where Can I Get Foreclosure Help in San Antonio, TX

July 15, 2021 • Matthew

Homeowners can have a tough time trying to avoid foreclosure. Late fees, exorbitant monthly payments, and other bills can make affording your current home a nightmare. Tackle on unexpected financial hardships and you’ll almost certainly experience the foreclosure process. But homeowners aren’t alone when needing foreclosure help in San Antonio, TX. There are many programs and methods to avoid foreclosure when trying to save your home.

Government Foreclosure Help

foreclosure help money back

There are several places to find foreclosure help in San Antonio, TX. Seeking foreclosure help from the government is one of the most common methods. Before contacting your lender about general loan modification, familiarizing yourself with the current initiatives enacted by the federal government can give homeowners the much-needed edge to avoid foreclosure.

One of the most common programs used by homeowners in foreclosure trouble is the Home Affordable Modification Program (HAMP).

Specifically, HAMP is used to lower a borrower’s monthly mortgage payments to make them both affordable and sustainable. The program achieves this by adjusting interest rates, extending payment terms, and reducing – or even forbearing – the loan’s principal for qualified homeowners. HAMP boasts that homeowners save approximately $500 per month on average. Half a grand can be home-saving for homeowners seeking foreclosure help.

Another loan modification plan went into effect 2013 to help homeowners avoid foreclosure. Created by Federal Housing and Finance Administration (FHFA), the Streamlined Modification Initiative (SMI) is similar to HAMP by offering homeowners the opportunity to redefine their mortgage payment plan.

Unlike HAMP, however, SMI allows borrowers to qualify for mortgage relief without gathering mountains of paperwork and applying. The mortgage company must mandatorily offer SMI after a borrower misses payment deadlines before initiating foreclosure, typically between 3 and 24 months.

Before SMI modifies the loan permanently, eligible borrowers will be required to make 3 on-time trial payments. The exact terms for those trial payments will differ among homeowners, but will be based on a fixed interest rate and sent through a letter in the mail. Once the trial is completed successfully, the loan changes are permanent. The SMI may also require principal forbearance and extended payment terms for some underwater borrowers.
court foreclosure help. the problems that can come up with foreclosing

“This new option gives delinquent borrowers another path to avoid foreclosure.” FHFA acting director Edward DeMarco said in a press release when SMI was initially proposed. “We will still encourage such borrowers to provide documentation to support other modification options that would likely result in additional borrower savings.”

SMI was enacted to minimize losses and help financially troubled homeowners avoid foreclosure. The program specifically targets government-sponsored agencies Fannie Mae and Freddie Mac, two of the leading insurers in the nation. Currently, the program works in tangent with a new government initiative enacted this year called the Principal Reduction Modification Program (PRMP).

PRMP is a one-time program for underwater borrowers that need assistance meeting monthly mortgage payments. This new program builds on the pre-existing SMI. If the homeowners can meet the lower payments and accept the lender’s final modification, the principal forbearance amount instituted by SMI will be forgiven. This means that homeowners who qualify for a PRMP will not have to pay back portions of their loans ever. It’s a greatly limited program for borrowers that need foreclosure help in San Antonio, TX.

If homeowners can’t qualify for any of the multitudes of loan modification programs or seek general consultation, the U.S. Department of Housing and Urban Development (HUD) offers free housing counseling services. By contacting an HUD-approved foreclosure avoidance counselor, homeowners can receive information and assistance necessary to avoid foreclosure. This option can be found conveniently on HUD’s website and is no-cost foreclosure help from the government.

Foreclosure Help for Veterans

veterans dealing with foreclosure help

Seeking foreclosure help in San Antonio, TX can be especially easy for veterans. In addition to the government programs offered above, veterans can seek help from the U.S. Department of Veterans Affairs (VA). VA not only offers ample benefits, news, and careers for active and retired servicemen and women, it provides a plethora of resources designed to keep veterans in their homes.

One of VA’s more helpful resources is the Home Loan Guaranty Service (HLGS). This program offers the assistance of more than 150 trained loan technicians situated throughout the country.

Much like HUD’s housing counselors, the service helps veterans understand how to retain their homes and avoid foreclosure with knowledge and assistance. They have some of the lowest rates in the industry while specifically targeting veterans that need government foreclosure help. Impressively, HLGS has helped nearly 300,000 veterans who were delinquent in their mortgage find a solution to avoid foreclosure.

Many veterans struggling to make monthly mortgage payments find relief in a VA streamline refinance loan. They’re similar to SMI but are restricted to homeowners that are also veterans.  Officially known as an Interest Rate Reduction Refinance Loan (IRRRL), an IRRRL is a VA-guaranteed loan that lowers your interest rate. Consequently, it decreases the monthly principal and interest payments and offers veterans a better chance at making payments. Veterans are eligible for these refinance loans if their home loan is one of the special VA-guaranteed loans.

Receiving an IRRRL does not require an appraisal, credit information, or underwriting. This allows veterans to apply without restrictions, saving precious time and money during the high-stress situation of a foreclosure. Veterans are allowed to use an IRRRL to refinance an underwater home though. (Remember, being underwater means owing more to your lender than your home is worth.) The basis for an IRRRL is the existing VA loan that cannot be paid, instead of the current market value of your home. Therefore, veterans can receive a greater refinance to pay off any financial hardships keeping them from making those mortgage payments.

Foreclosure Help to Save Your Home

getting foreclosure help

If the loan modification process seems too time-consuming or a homeowner isn’t eligible for the government foreclosure help, there is yet another option. Many homeowners at risk for foreclosure seek foreclosure help by contacting a company that buys houses directly. This option is not only less stressful, it’s also extremely effective when trying to avoid foreclosure.

Many homeowners assume that house buyers are solely interested in buying properties.

However, many house buying investment companies would rather offer free foreclosure help to homeowners in need than make a sale.

House buying companies know the emotional and financial stress caused by foreclosing and all sympathetic to those experiencing financial issues. They’re also unbiased; unlike your lender, house buyers have no financial stake in your loan defaulting. Before making a call to your mortgage lender, contact a house buying company to see what your options are from an unbiased point of view. Unsolicited and sympathetic foreclosure help in San Antonio, TX is always the best option.

Matt Buys Houses TX is one such house buying company in San Antonio. Give us a call at 210-596-9669 so we can help you with options to avoid foreclosure.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Tax Implications When Selling Rental Property in Texas

July 8, 2021 • Matthew

Considering a Sale of Investment Property?

There can be plenty of reasons for wanting to. If you do, you need to be aware of the tax implications when selling rental property. There’s a lot to know…so let’s get started.

The sale of investment property requires considering the tax implications when selling rental property.  Make sure before making the final decision to sell your rental property that this is what you want to do. Dealing with the tax matters can be complicated and expensive.

tax implications when selling rental property

Tax Rules When Selling Rental Property

The first thing you are going to want to become familiar with is the tax implications when selling rental property. This is going to involve capital gains or capital losses. The tax implications involve this area of the tax laws.

Taxes on selling rental property are going to include taxes at both the Federal and State level.

The difference between the sale price and the adjusted tax basis determines capital gains.

A rental property tax calculator can help determine this.

Capital gains can pertain to either short term or long term gains. This helps to determine what your selling rental property tax obligations will be.

Sometimes individuals purchase rental property and discover it’s not for them. Then they want to sell it within the year. This is considered short term so if sold at a profit then it would be taxed as short-term capital gains. Usually, this is taxed at the standard income tax rate.

Property held for longer than one year is subjected to a different tax rate. This is a long-term capital gain. The rate can range between 0% to 20% but most often falls within the 15% range. Again you can use a selling rental property tax calculator, to help you estimate the tax implications when selling rental property.

Selling rental property tax expenses determines the basis of the rental property. This usually is the amount that you paid for the property.

Plus, additional expenses that you incurred to make the sale. If events occurred that decreased  value then you can likewise decrease the basis amount. At the same time if you improved the property then you can add the value of these improvements to the basis.

There are some advantages to an increased basis as it can help to reduce the amount of taxes you will need to pay. At the same time, you can enjoy an increased tax deduction with a capital loss.

Possible Tax Deductions When Selling Rental Property

Pay close attention to rental property tax deductions when you are going to sell. You will still have your regular tax deductions for this property up until the time that you sell it.

It may be that when you are selling the property you are not going to realize a profit. This is going to put you into a capital loss situation.

You will be limited as to the amount you can deduct for this loss. You will be able to carry the loss forward for a specific number of years. Just as there are short term and long term capital gains the same applies for capital losses.

comfortable living room with sofas

Owning the property for less than one year constitutes a short term loss. Whereas longer than one year is a long term loss. You will need to look at the current year’s allowable deduction limit for the capital loss.

You may also be able to qualify for passive losses. These could be included with your selling rental property tax deductions.

These losses occur when your property losses in a given year exceed the rental income. There is a cap on as to how much you can claim each year, but these losses may be able to be carried forward. When you sell the property you can apply any of these unused losses that occurred during the sale year.

One advantage you may want to take advantage of is selling your investment property and buying another.

It would have to be in the same category as an investment property. This applies to the 1031 tax rule. It can be complicated so you would want to rely on professional advice regarding this.

Some individuals sell their investment property so they can pay down their primary residence mortgage. This can create some substantial tax liabilities.

Tax Implications When Selling Rental Property

Researching your tax obligations when selling your rental property involves becoming aware of the law. This includes knowing the tax consequences that effect tax implications when selling rental property.

wood house with a green bike

Property depreciates and the IRS realizes this so they have rules in place. This pertains to how the calculations are handled for your depreciation deduction. Basically, the rules are that depreciation applies over a 27.5 year period. So each year a portion of this can be used as a deduction against the profit you are making. It works out to  3.636% per year. Improvements have to be calculated into the depreciation formula.  Looking at rental property tax legalities when selling may mean other things to consider.

If you have been claiming depreciation you may be subjected to depreciation recapture tax.

Another area that includes potential tax consequences of selling a rental property is incurring the new Net Investment Income Tax. If this applies to you then you may have to pay an additional 3.8% on your net investment income. This is applicable to specific thresholds and deals with capital gains.

Being as this is not your principal residence you are not eligible for the capital gain exclusion. Which usually amounts to  $250,000/$500,000.

Selling Rental Property Taxes Implications Summary

rental apartments

You must be familiar with the various tax laws during the sale of investment property. This is so you don’t make any mistakes when determining what your profit will be after taxes.

You will most probably want to use the services of an accountant to assist you with this. Although you can use the selling rental property tax calculator. This will give you a good idea as to what your selling rental property tax figures will be. If you are really familiar with the tax laws and tax implications when selling rental property, you can use tax accounting software to help you file your taxes pertaining to your rental property sale.

 

Ready to Sell?

If you’re interested in selling your rental property give us a call at 210-596-9669. We buy houses in San Antonio and pay cash so that you can sell your house fast. Give us a call!
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

I Inherited a House in San Antonio, TX. Now What?

July 1, 2021 • Matthew

I’ve inherited a house….now what?

It’s a question many face when they suddenly inherit a house without any prior knowledge on the situation. In this article, I will inform you of everything you need to consider if you’ve inherited a house.

Inheriting a house can be a fortune for some and a headache for others. There are several things you can do when you’ve inherited a house – move in, sell it, or rent it.

But there are also many other implications you might have to consider, such as inheriting a house with a mortgage, paying taxes on an inherited house and tax implications.

inherited a house

 

But don’t worry. Everything you need to know about inheriting a house is explained below, including what happens if you inherit a property with a mortgage, and any tax implications you might face.

First off, you need to decide whether you want to sell, rent it, or move in when you’ve inherited a house. If you don’t wish to do anything with the property, you can also disclaim it – scroll to the bottom to find out how to disclaim your inherited property.

Second step: Read the will!

Does the deceased have a valid will? Are you fully aware of everything the deceased is offering? If you’re not sure how to proceed, it’s always best to consult with a professional.

What you should know: If the estate is worth more than $100,000, the court will start a probate to make sure all debts are paid and everything is distributed as it should be. Having a will does not avoid the probate process.

If the will is not valid, the court will follow the state laws of intestacy.

I inherited a house and decided to sell it. What do I have to do?

When deciding to sell your inherited house, here are the first steps you need to take:

  • Verify your ownership.
  • Get advice from a professional.
  • See a tax advisor.
  • Check out the state of the house.

inherited a house that's too old

Does the house need an upgrade to up the value? Are there some improvements you need to make? Does the exterminator need to be called? Make an inventory of all items and note down all problems that need fixing. Then, get in touch with all necessary professionals that will help you sell your house and give you the best quote. Please note that in most cases, especially when dealing with real estate agents, this could take months, depending on the state of your house.

Do you wish to sell your house FAST to a cash buyer? Give me a call and I’ll give you a quote in just 24 hours – we are happy to accept houses that need repairs.

I inherited a house with a mortgage. Help!

Inheriting a house with a mortgage instantly brings up a lot of questions that sometimes remain unanswered and resolve in long-term complications. Here’s what you should know:

A house with a mortgage can be inherited just like any other property.

What you need to do is make arrangements to pay off the mortgage and look into property taxes.If you’re inheriting your parent’s home you MUST live in the home and make required payments, however, if you intend to assume the mortgage, you can also keep it in the deceased relative’s name.

Make sure you consult your lawyers and financial planners – find any other implications that come with inheriting a house with a mortgage in your country.

Do I pay taxes when I inherited a house?

Selling you’ve inherited a house can mean that you will most likely have to pay income taxes if you made a profit while a loss during the sale could mean a tax deduction. There are plenty of tax implications that can come with an inherited house, so make sure to read the fine print carefully and always consult with your financial and tax adviser.

“The higher the basis, the lower your taxable gain from the sale.” states LegalZoom.

To put it in simpler words:
[property value] – [your purchase] = taxable gain
Different rules might apply due to the inheritance tax.

So yes, you do have to pay taxes when you inherit or sell your home. In the case of a sale, you need to use the same calculated method as above to discover your tax gain or loss and then report the sale on IRS Schedule D as well as your 1040 tax return – please note that this form needs to be used in the year you sell your home.

How do I disclaim an inherited property?

There are several reasons why someone might not want to do anything with their inherited house – not even bother with the process of selling it.

Reasons to disclaim an inherited property:

  • High real estate taxes.
  • Avoiding responsibility of the deceased’s legal past.
  • Give it to another family member.
  • Other personal reasons.

Inherited property disclaimer requirements:

  • It needs to be done in writing.
  • It needs to be disclaimed within nine months of the deceased’s passing.
  • No benefits should be made when disclaiming the property.
  • The assets cannot be passed indirectly to the person disclaiming the property.

inherited a house with flowers

Thinking of renting after you’ve inherited a house?

Becoming a landlord comes with plenty of responsibilities. Make sure you read my articles on renting a property to get all necessary information on renting an inherited home.

Ready to sell your house? Sell it to a house-buying company. This gives you the best of both worlds! You won’t have to worry about any repairs, you save on commission costs and you can receive a quote in just 24 hours.
Matt Buys Houses TX gives you a cash offer within one day and you can close it whenever you want. Your house can be sold in a week!

We buy houses in San Antonio and we pay cash!

If you need to sell your San Antonio area house fast and would like to get a no-obligation cash offer, call us now at 210-596-9669. Whether you decide to sell your house to us or not, we would like to help answer questions you might have about the process.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

How to Stop Foreclosure in Texas

June 24, 2021 • Matthew

Foreclosure is a scary process for most homeowners. When you acquire a mortgage, there’s a constant threat of foreclosure looming over your head. Knowing how to stop foreclosure from happening before it becomes a problem is an important thing for homeowners to understand.

Whether the continual payments are too high or a homeowner finds himself experiencing financial hardship, having your home seized by the courts is a real possibility. But even after missing a few months of payments and receiving a Notice of Default, losing your home doesn’t have to be inevitable.

With a general knowledge of the foreclosure process and determination to keep your home, you can learn how to stop foreclosure in Texas. We’ll show you how so that you can be prepared should you ever need to avoid a foreclosure.

how to stop foreclosure from happening

Communicate with Your Lender

Although homeowners have several strategies to choose from when deciding how to stop foreclosure process, some everyday advice can be implemented to slow the foreclosure’s acceleration. Before making major life-altering decisions, consider some of these general tips when contacting your lender.

One of the easiest ways how to stop foreclosure in Texas is by communicating with the mortgage company. If a homeowner cannot meet the required monthly payments, changing the amount owed each month will ease a borrower’s financial burden.

Asking for a loan modification is one possible permanent solution. Loan modifications typically allow homeowners to make lower payments at higher interest rates or over an extended loan period.

If a borrower is on the cusp of foreclosure due to several missed payments, they can ask their lender about reinstatement. Also known as a temporary indulgence, a reinstatement allows homeowners to bring their loan current and proceed with their mortgage as before. However, a borrower must be able to afford to make the missed payments in addition to late fees and interest rates. Reinstatement might not be a viable option for homeowners with lasting financial issues.

Mortgage companies can also offer other plans to assist homeowners when asked. Repayment plans, for instance, allow borrowers to repay missed payments by making slightly increased monthly payments. These plans allow you to catch up while stopping foreclosure. All a homeowner needs to do is communicate with their lender and ask about current options to relieve loan debt. More times than not, a quick call to a sympathetic lender can be home-saving.

Seek Help

getting help on how to stop foreclosure

Seeking the help of third-parties is another way how to stop foreclosure in Texas. Although homeowners have several options when stopping foreclosure, sometimes the process is too much for a single person. Enlisting the expertise of professionals will lessen your stress while providing a multitude of options for keeping your home.

One option available to borrowers is contacting a foreclosure avoidance counselor. The U.S. Department of Housing and Urban Development (HUD) offers free housing counseling services to give homeowners the information and assistance necessary to avoid foreclosure. They’re offered in every state and can be found conveniently on HUD’s website.

Homeowners can also seek out help from the new Home Affordable Modification Program. Enacted by President Obama, the Homeowner Affordability and Stability Plan (HASP) allows homeowners to refinance to reduce monthly payments while implementing a special Making Home Affordable loan modification that can be applied by lenders. “If your mortgage payment is more than 31 percent of your monthly income, for instance, the new program offers financial incentives to lenders to lower the monthly payments,” adds Fraser Sherman, prominent finance journalist.

Borrowers can also seek help from the courts. The expertise applied when hiring an attorney can be helpful when wanting to know how to stop foreclosure immediately. Not every foreclosure process warrants legal intervention; nonjudicial foreclosures skip the courts altogether. If a homeowner feels like their foreclosure is unjust due to lender errors, unfair terms, or failure to follow legal procedures, they may have a viable lawsuit. These substantive defenses are considered the best legal way to stop the foreclosure process.

The Bankruptcy Option

using bankruptcy to stop foreclosure

Many homeowners find themselves at risk for foreclosure after accruing a large amount of debt. They might think filing for bankruptcy is the simplest solution to escape their financial troubles. In some instances and with enormous debts, that can be true. However, if a homeowner isn’t keen on a lengthy litigation process and wants to halt the foreclosure process immediately, filing for bankruptcy might not be the best strategy for how to stop foreclosure in Texas.

Once an individual files the petition for bankruptcy, federal law prohibits debt collectors from seizing assets to pay off what’s owed. Since foreclosure is considered a collection activity, mortgage lenders must halt the foreclosure process. Once in court though, the bankruptcy trustee’s role is to play mediator between the filer and creditors, not absolve debt. Going through the courts will buy borrowers time to make past mortgage payments, but it won’t stop the foreclosure process completely.

Filing for bankruptcy also has longer lasting consequences. Depending upon which chapter of bankruptcy you file under, the filing will remain on an individual’s credit report for up to ten years. During that period, it can prevent a homeowner from obtaining future lines of credit or borrowing from another lender. If a homeowner forecloses after filing, they’ll be unable to take out another loan and may be forced to live in an undesirable location until they can. Unless the consequences of bankruptcy are manageable to a homeowner, it’s not the best option when deciding how to stop home foreclosure proceedings.

Just be careful that you don’t end up paying attorneys the money you could have used to pay arrears and get out of foreclosure. Yikes!

How to Stop Foreclosure and Save Your Home

houses without foreclosure

Although homeowners have several methods available to saving their property from repossession, some options are better than others. Selling your property to a cash home buyer before the lender takes it to auction might be the best way how to stop foreclosure in Texas.

Homeowners have the option to sell to a cash home buyer, even after a lender begins the foreclosure process. After defaulting but before the Notice of Sale, mortgage companies must consider selling if a borrower gets an offer from a buyer. Many lenders prefer this to other options because it saves them time, effort, and trouble when looking for home buyers at auction.

Selling to a cash house buyer is the best method to saving your home because it allows homeowners to keep whatever profit they make after paying back the lender. When homeowners sell, they gain standing in an otherwise powerless situation. Foreclosure is a scary threat on your credit that could possibly leave you homeless. By selling to a cash house buyer, homeowners gain the advantage of making their own decisions, acquiring money to use on their next property, and forego the foreclosure process completely. It’s the best option when needing to know how to stop foreclosure in Texas.

Get a No-Obligation Cash Offer Within 24 Hours

See, learning how to stop foreclosure isn’t as bad as you thought. If you’d like to see how much you could get for your house from a buyer that can close it fast, give us a call at 210-596-9669. We buy houses in San Antonio and can close within 2 days if absolutely necessary. We pay fair prices, but if our offer is not acceptable, you have absolutely no obligation to take it. It has to work for both parties and we only move forward if everyone is happy.

Give us a call and find out what we can pay you for your house!

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Selling Rental Property in San Antonio, TX

June 17, 2021 • Matthew

Selling rental property in today’s market can be complicated. Knowing when to sell your rental property is just one of many questions you might have. Even though asking prices are breaking record highs, selling your home is a daunting task for most homeowners.

Listing, updating, and advertising your home costs both time and money, and hiring realtors can slow your move-out time exponentially. But what about the added pains to selling an income property? Believe it or not, selling rental property in San Antonio, TX doesn’t have to be a months-long nightmare.

selling rental property

Selling Rental Property: The Right Time

Like most ventures, selling rental property in San Antonio, TX is all about timing.

Determining the right time to sell your rental property means considering a multitude of factors. Selling a San Antonio house is not only more complicated than purchasing, it also requires more risk. According to some experienced in home-selling, “choosing the right time to sell a rental property may be more crucial to your success… then your initial decision to purchase it.” With that in mind, consider these factors when selling rental property in San Antonio, TX.

Before selling, evaluate the current state of your rental. Rental properties are notorious for being hard to manage, even with an attentive and well-meaning landlord. Whether it’s a lack of cooperative tenants or the inability to foresee the emergence of major repairs, a rental property can fall into a state of disrepair fast. Needing major repairs without having access to the home or funds set aside for them can create a massive financial loss that’s unappealing to most rental property owners. It may be time to sell.

office table with white chair and wooden floors. Selling Rental Property in San Antonio,TX

Does your property generate a negative cash flow? Does it cost more to own and maintain than the income it produces? Even rental properties with the highest rent in the best neighborhood can be too costly to keep.

Owning the ideal rental property in San Antonio, TX means paying for property upkeep, taxes, utilities, insurance, among other monthly expenses. Your renters are paying for residence in the best area, but you’re paying more for maintenance and management. After expenses, is the bottom number adequate, or can you yield more revenue in other investment opportunities?

Like most markets, the renter’s market is fickle. A good year for rental property owners can mean increased appreciation and profit. But a market downturn can hemorrhage your savings. A once profitable piece of property can become an anxiety-inducing nightmare. Consider your long and short-term goals. If you envision your investment as more of a financial liability than a guarantee, it’s time to consider selling a rental property in San Antonio, TX.

Selling with a Tenant

So you’ve decided to cut your losses and sell your rental property. Now, what? If you have current tenants, you might be wondering about the complications concerning selling your rental property with tenants.

Rooftops selling rental property

Even if your tenant is one of those rare, dream tenants – they’re tidy, never call after hours, and care for your property like it’s their own – selling your rental with a pre-existing tenant is more of a hassle than selling an empty home. “If you want to sell your house with a tenant for the highest and best price, even the best tenant can be a detriment,” warns realtor Bill Petrey. This is partly due to a tenant’s lack of incentive to keep the property in showroom condition to impress and woo home buyers.

Having a tenant is also a deterrent for many potential buyers. Like it or not, when you’re selling rental property with tenants you’re selling rental property with tenants lease. You reduce the pool of potential buyers. Some home buyers can wait until a tenant’s lease is expired to move, and will buy your property without worry. But most want homes that are move-in ready the day of closing. Unless you’re trying to attract landlord buyers and other investors, selling a home with a pre-existing tenant can be limiting.

But there’s an upside to selling rental property with tenants. You can combat the negatives by enlisting your tenant’s help with showing your property to potential buyers!

By communicating with your tenant, you gain the possibility of making them more amenable to showing your home, an inconvenience no one likes during the selling process.

Some rental property owners even offer tenants a reward for keeping the home in peak condition. These rewards can include lowering their monthly rent or giving them gift cards to spend the day of a showing. “The success of dealing with a tenant during a sale is less about the message itself, but in how the message is delivered,” explains Zillow’s Brendon Desimone.

Selling tenant-occupied property can be tricky, but it’s certainly not impossible. While some buyers avoid tenants, others flock to the chance at owning a rental property that produces consistent  income day of sale. If you can offer your tenant an incentive for the inconvenience of showing your property and helping with the upkeep, you’ll generate more potential buyers. More buyers mean more bidding, and more bidding means procuring top dollar when selling a rental property in San Antonio, TX.

selling rental property old house

Selling at a Loss

When selling a rental property, it’s smart to consider the taxes imposed on your capital investment. It might be the least of your worries, but you must pay tax on any profit you earn while investing. It’s your selling rental property taxes.

If you’re selling while the market is favorable, your overall equity has increased, or you’ve lacked any major vacancies since renting your property, expect to pay a capital gains tax. The tax signifies your rental property’s ability to earn a positive cash flow and is considered a positive consequence of selling.

But what about selling rental property at a loss? Although very few investors buy property to lose money, it happens quite often. It’s one of the major risks of real estate. It can happen for any number of reasons, including a property-specific problem or the market losing equity.

Selling at a loss means the property drops in value causing you to lose money when selling. No one wants to sell at a loss, but sometimes it’s inevitable. It doesn’t have to be a negative consequence of selling, though.

According to Turbo Tax, “losses from selling rental properties generally receive favorable tax treatment.” If you owned your property more than a year, you can file for a Section 1231 loss. This specific loss can be used to reduce any type of positive income you’ve accrued. If your Section 1231 loss is large enough and it reduces all other income below zero, you obtain a Net Operating Loss (NOL). While taking a huge financial loss is generally considered bad, it can be a blessing for tax purposes. An NOL can be carried back for at least two years, offsetting taxable income and allowing you to regain the taxes you paid those previous years. An NOL can also be applied to future tax years and counter net gains for up to twenty years!

apartment building selling rental property

Selling rental property at a loss is a short-term loss, but it offers long term gain. If you purchased your rental property with a mortgage, you’re able to pay off your mortgage with a short-sale, even with an overall loss. If you own the property outright, you can take the loss but garner great tax benefits that last well after your close. Selling rental property at a loss isn’t only a viable solution to selling your investment, but can be a strong business plan to invest in future properties.

Selling rental property in San Antonio, TX doesn’t have to be stressful when considering all the factors before closing. Is it the right time to sell? Do you need to sell with tenants? What are the tax benefits to selling? If you can answer these questions with assurance, selling your rental can be an easy decision with multiple benefits.

Get a Cash Offer For Your Rental Property

Interested in a faster option? Matt Buys Houses TX can make you a no-obligation cash offer within 24 hours to buy your rental property in San Antonio, TX.

If you want to find out more, do not hesitate to call us directly at 210-596-9669. We looking forward to talking with you.
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Should I Sell My Rental Property in San Antonio, TX?

June 10, 2021 • Matthew

At some point in time you may end up asking yourself should I sell my rental property in San Antonio, TX?

There can be several reasons why this question is being raised. When it does arise you are going to find that it leads to many other questions. This now means giving some serious thought to the answers so that you can move forward confident that you’ve made an educated decision.

sell my rental property

Should I Keep Or Sell My Rental Property?

Let’s look at the pros and cons to selling your rental property.

 

The Benefits of Keeping the Rental Property:

You are probably aware of the benefits of having rental property.

Otherwise, you would not have entered into this type of real estate adventure. The question is are you still reaping those benefits? Or are the benefits just not worth the time and work involved?

The benefits can consist of…

  •  Extra income from the rent collected that can be put to good use.
  •  You have a property that will build in equity.
  •  It can be alternative to selling if you have a personal interest in the property.
  •  It provides additional security by way of additional income.

red door with bushes and wreath. sell my rental property?

Then at the same time you are asking should whether you should keep or sell your rental property that has tenants you have to look at the downside of being a landlord.

  • Having to deal with tenants.
  • Dealing with legal issues.
  • Having to maintain and upkeep the property.
  • The time and effort.
  • Potential tax consequences of selling a rental property.

If you’re thinking of selling, you’ll probably want to consider selling your San Antonio house fast.

Should I sell My Rental Property Now?

If after coming to the decision that yes you are ready to sell your property  you will need to ask yourself, when should I sell my rental property? It may be because you are contemplating this that selling it now may be an option.

This is going to depend on a lot of factors which includes your reasons for deciding to sell.

garage door to sell rental property in San Antonio

Should I sell My Property to Pay off Debt?

Should you sell your rental property in San Antonio to deal with a heavy debt load? Great question!

Now you are faced with a more specific question like should I sell my rental property to pay off debt?

To find the right answer to this question you are really going to have to do some financial figuring.

You need to look at all the costs of the rental property and what is the profit from the rental unit.

Then you need to look at the cost of your interest rates on your debt and see what you would be saving if these were cleared. There are other factors that you need to take into account as well… like the long term value of the rental property over time.

Should I Sell My Rental Property at a Loss?

You might have a solid reason to sell your rental property even at a loss.

Then you may have to ask yourself, “should I sell my rental property at a loss?”

This can be really disturbing as nobody likes to lose money. The one advantage may be for tax purposes where a loss can be realized.

Depending on the real estate market at the time you may not have a choice if you need to sell the property quickly.

a house with a window and three flower pots. should i sell my rental property?

Can I Sell My Rental Property with Tenants in it?

Can you sell a rental property with tenants in it?

There are pros and cons to selling your rental property when the tenants still live there.

With tenants in place you are showing the property is generating an income. It saves a potential new buyer from having to find tenants. The downside is dealing with the tenants during the sale process.

Some tenants will cooperate where others won’t. When the property is on the market it means that the realtor is going to have to show it. Tenants may find this an inconvenient and will try and make it difficult for showings. Or, they may not tend to the property properly and it won’t show at its best. To answer this question you are going to have to really know how your tenants are going to react to the sale. You can also discuss the pros and cons with your Realtor who is experienced in this.

To find out more about selling a rental property with tenants please read this article.

It really just boils down to what makes the most sense for your circumstances

You can do this by looking at your personal circumstances. Make sure that when making your decisions to think about the long term of your actions.

You may be in a temporary financial circumstance that needs addressing. Selling the property could maybe help with this. However, would doing this put you at a bigger disadvantage later on down the road?

Be sure to rely on the right professionals when you decide to sell your rental property. These are experts like a Realtor or a cash San Antonio home buyer.

They can help answer the questions you are faced with. Their advice can help you take the right steps in regards to a sale. Also, if you are feeling frustrated over your rental property this may be temporary and you don’t want to make a hasty decision because you may be having a bad day.

Then there are times when the housing market is really booming and you may decide this is the best time to sell. Consider the reasons why you entered into rental property and see if this has changed.

 

Get a No-Obligation Cash Offer

If you want to see what this option can do for you, feel free to call Matt Buys Houses TX at 210-596-9669 right now. There is no-obligation so it won’t cost you anything and you can consider the offer to buy your rental property as something to consider.

Thanks for reading and I hope this article helped you to understand your options better.
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.
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