why is it that when a person that gets their home foreclosed on or the i.r.s. takes a home for taxes that??!!?

Question

they do not just work it out with the people that they foreclosed on or sold the home for taxes??!!

i mean the real estate company will actually lose money when they have to resell the home and after wear and tear and depriciation they will have to also pay for advertising and a sales commission, and the i.r. s. will be lettin the house go for just those taxes that are owed and will miss out on future tax payments!!!

or have i got the wrong info on this??!!!

Answer 1

It is pretty unusual for the IRS to actually take a home but if they do, there's some big $$ involved.

Real estate people are just the folks who show houses. They don't own them. They make commission everytime they sell a house.

Banks and mortgage companies loan people money to buy homes. When the people don't pay, they foreclose. Before it gets to that point, they try very hard to get the people to pay up. Lenders want the money. They don't want the house.

Answer 2

Yeah, you've pretty much got it all twisted.

1. The IRS rarely foreclosed upon a tax lien. The normally just wait quitely by for a change of ownership at which time they'll get their money. With interest. The IRS almost never loses out.

2. When a lender forecloses on a loan, they're protecting their interests since the homeowner has not been paying the mortgage. They'd lose more money by not foreclosing.

3. Real estate companies never lose money on selling foreclosures -- or any other property for that matter. They get their commissions regardless.

4. When a home is sold for back property taxes the new owner still have to pay the property taxes. The city or county loses nothing since any costs related to the tax sale are normally paid by the buyer.