The New York Times has profiled another [tag-tec]distressed owner[/tag-tec] who was trying to avoid [tag-ice]foreclosure[/tag-ice].
This time we have the Stouts of Allentown, PA.
They mistakenly thought their troubles were over after they willingly gave their distressed property back to the bank and started a new life.
Everything seemed okay until the IRS came knocking. The Bill? $34,603 in forgiven debt- back taxes.
Can the IRS really do this to a couple in foreclosure or pre-foreclosure?
Yes, in some cases.
Why is this significant to investors who are interested in how to buy foreclosure real estate?
It is one more very tumultuous source of stress for the distressed owner.
Would you be more motivated than ever to sell if you thought the IRS was coming after you? If you are one of hundreds of thousands of owners facing [tag-self]foreclosure[/tag-self] you probably would, and for good reason.