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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 36927
Experience:  Texas Attorney for 30 years dealing in real estate
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If I give up my rental property in Texas, as it is my best

Customer Question

If I give up my rental property in Texas, as it is my best tax saving solution, will I still be responsible for an existing private company, Propel Tax Loans, for a tax loan from about seven years ago? This property was already part of a bankruptcy we had, so they cannot go after me for the mortgage loans. I believe at the time of the bankruptcy, the lawyer said this tax loan could not be dissolved. I have given up other properties in Texas, & not been responsible for the actual state property taxes due at the end of the year. This house is not impounded for taxes on the mortgage. I am currently up to date with the state. Will the mortgage bank be responsible for the taxes due this January if I stop paying & foreclose this house? If I sell it, I will owe more personal income tax than I will make on the sale.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
Here if the tax loan was not discharged in bankruptcy as a creditor then you are still liable for the loan and debt.It appears that this is what your bankruptcy lawyer has told you and that's accurate.But it also appears this is beyond the 6 year statute of limitations for them to file suit to collect it.
Once the property has been foreclosed or a deed in lieu you are no longer responsible for the taxes from the date of the deed forward.You may want to contact the lender to see if they will accept a deed in lieu here to get it out of your name sooner.They may well do that.
If you can do a deed in lieu here it gets you out of it sooner and no more property taxes.
As far as the tax loan this creditor may have written off the loan if they have not come after you by now.
Texas has a six year statute of limitations on suit on a note so it may be past time for them to sue here.
§ 3.118. Statute of Limitations
(a) Except as provided in Subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years after the accelerated due date.
(b) Except as provided in Subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within six years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of 10 years.
(c) Except as provided in Subsection (d), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three years after dishonor of the draft or 10 years after the date of the draft, whichever period expires first.
(d) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within three years after demand for payment is made to the acceptor or issuer, as the case may be.
(e) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within six years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the six-year period begins when a demand for payment is in effect and the due date has passed.
(f) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced:
(1) within six years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time; or
(2) within six years after the date of the acceptance if the obligation of the acceptor is payable on demand.
(g) Unless governed by other law regarding claims for indemnity or contribution, the following actions must be commenced within three years after the cause of action accrues:
(1) an action for conversion of an instrument, an action for money had and received, or like action based on conversion;
(2) an action for breach of warranty; or
(3) an action to enforce an obligation, duty, or right arising under this chapter and not governed by this section.
(h) This section does not apply to an action involving a real property lien covered by Section 16.035 or 16.036, Civil Practice and Remedies Code.
(i) A right of action of a public institution of higher education or the Texas Higher Education Coordinating Board is not barred by this section.
CREDIT(S)
Amended by Acts 1995, 74th Leg., ch. 921, § 1, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 219, § 4, eff. May 23, 1997; Acts 2001, 77th Leg., ch. 279, § 1, eff. May 22, 2001.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.
Expert:  Ray replied 1 year ago.
Please let me know if you have more follow up it is never a problem, thanks again.
If you can leave a positive rating it is always much appreciated.
Customer: replied 1 year ago.
The tax loan is current on payments, as are the house payments. The mortgage payment will increase beginning March, 2017, so I am trying to figure my best option before then, to keep as a rental, let go back to bank or to sell. My tax woman said I would suffer a $25K tax addition if I sell, but I would only get around $18K in profit, so I'd lose money. I am a recent widow with two college age kids, one in school, both working part time, both dependents. I could use some profit for use on my older car repairs, so I need advice please. Will someone call me back? (###) ###-####
Expert:  Ray replied 1 year ago.
I cannot do phone calls.Be happy to respond here.I would contact lender to see if they would do a deed in lieu. That gets it out of your name with no deficiency suit, they take it and go away.Your tax advisor here is giving you good numbers from a sale.This is less damaging to your credit but you may end up owing some here.You may loose money but save your credit. You could keep it for awhile and pay the increased payment, you may have to go up on the rent when lease is up for renewal.There is going to be some pain here, you decide if you want a credit hit or a tax hit.No way around some pain in a sale or a deed in lieu here.
Expert:  Ray replied 1 year ago.
Thanks for the chance to help you.

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