A pre-foreclosure occurs when the ownership entity has defaulted on their loan payments. The foreclosure process is usually initiated by the Senior Lender in the form of an official “Notice of Default” (NOD) pursuant to your loan documents.
The timeline of the Foreclosure Process which impacts your “Pre-Foreclosure Process Strategy” based on both the jurisdiction in which the property is located; and other applicable legal documents. This is why close communication between ownership entity; legal counsel and Lender’s legal are important parts of the solution; if you wish to defer your Capital Gain Liability due to Relief of Debt and your Recapture of Depreciation as a taxable event.
The timelines can range from 3-4 weeks to 5-6 months. How you spend that valuable time will impact the results, dramatically.
Cooperation, good communications and professional performance by every member of your Foreclosure Team is critical. www.foreclosewithease.com assists by coordinating with your Pre-Foreclosure Team of legal, accounting, tax accommodator or QI to craft a seamless and efficient tax deferral solution.