You can sell your home earlier and pay off the mortgage but you might face penalties. Each bank has their own rules for the penalties but its usually a few month of your mortgage payment.

If there is a government lien even the wires that are in process will be frozen.

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Can we sell a house if we recently purchase with out penalty? we cannot afford it?

your're screwed its funny if this is true with all that is going on in the housing market, the forclosures all the warnings and people still buying crap they cant afford. I hate to say it but I hope you get reemed. lol

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Ok the best way I know how to answer your inquiry is to send you to big brother. You need to get the actual and specific answer from the source relating to taxes which is what I am assuming you are talking about when you say "penalty". In addition to the so called "penalty" question there are costs and profits that you will need to concern yourself with on real property sale. So having said all that here is where you need to go and do your research: IRS: 3.6 Itemized Deductions/Standard Deductions: 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses): http://www.irs.gov/faqs/faq3-6.html IRS: Gain and losses on real property: http://www.irs.gov/publications/p544/ch01.html IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html and http://www.irs.gov/publications/p523/ar02.html IRS: Home Sale Exclusion rules, publication: http://www.irs.gov/newsroom/article/0,,id=105042,00.html Not included in the above research links are research links pertaining to tax liabilities to your state and that's because I don't know your state. Have fun in the research. Buena Suerte

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My mom purchased a home in n.j. for about $80,000 10 years ago.since then she has refinaced it with a home equity loan and currently owes $69,000 left on that loan.she wants to sell the home to me for whats left on the loan as a cash out refinance loan which would put the house in my name. the question is or questions are is there any type of gift penalty to me since the actual market price of the house is $180,000,and how might the irs view this if at all, as a capital loss(since its being sold for less the it was originaly paid for) or as something else since it could be sold for more. any thoughts or advice is this would be greatly appreciated.

Tax consequences of you buying the house: 1. Your basis in the house is your mother's basis of $80K. If you sold the house for $180K, you would owe taxes on $100K unless you lived in the house as your main home for two years. If you eventually sell the house and it has appreciated more, you could owe tax on the sale even with the exclusion of $250K for unmarried taxpayers ($500K for married). 2. Your mother will have given you a gift of $101K. This reduces her lifetime gift exclusion of $675K. If she has other assets, this may impact her ability to give more of her assets without paying gift tax. 3. Since your mother is selling the house for less than she paid for it, she does not have a gain. Her loss on the sale is not deductible.

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I need to know what tax penalty if any i will pay on a home i sold. i owned it for 5 years and used part of my home as a rental, so i claimed depreciation of approximately $4800/year. i sold it for $25,000 more then what i originally bought it for. if i don't purchase another home this year, what will be my penalty in taxes or will i have penalty? i read something about if you sell a home you don't pay capital gains if your proceeds are under $250,000 for a single or $500,000 if married if it is your first home. is that right? it was a single family home in which i rented rooms.

If you lived in the home for 2 of the 5 years before you sold it, you can exclude the $25,000 gain from income. The issue is going be the depreciation recapture. That is not eligible for exclusion. Using your rough numbers: $4800 x 5 years = $24,000 in depreciation recapture. $24,000 x 25% = $6000 in federal income taxes plus state income taxes if applicable.

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My husband and i have a beautiful house in a suburb of st. louis, mo. just over a year ago we moved from that house to south fl for a job. we had the house on the market for 6 months without a single offer. then we put it up for rent and found a family we had hoped would buy it at the end of their year end lease. unfortunately we are now trying to evict them for not paying rent and are just not sure how to proceed. should we go through with re-renting the property and risk having problematic tentants again or try to put it up for sale again? the problem is that if we try to sell it we would have do go with a short sale, meaning the bank would accept less than what we owe, resulting in penalties to our credit and not being able to purchase a new house for 18 months. what should we do????

A short sell still may not sell in less time. Banks are notorious for not accepting short sell offers. Renting it out can be an excellent tax deduction. If you are underwater with your mortgage you may be able to get a loan modification.

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My husband and i bought a house a year and a half ago (november of 06.) we pretty much maxed ourselves out when we bought it because it had an attached office which we thought would be perfect for our studio/meeting room. well, no one seems to need/be able to afford a photographer this year and our weddings are down by like 15 weddings than average. so basically, our income has decreased about $15,000. my husband has gotten a second job, but we are still just getting by. we basically pay the bills, eat spaghetti and that's it. our predicament is (yes, i know this was stupid, no need to comment) we signed a loan that had a penalty. we have to pay a penalty if we sell our house or re-do our loan within 3 years of the purchase. so we have until november of '09. would it be stupid to pay the penalty and sell (and possibly lose money because of housing prices?) or should we stick it out. also, when we do sell this house (we are def selling as soon as our penalty us up is not before), we are planning on moving to sc. you know, start fresh. would it be wise to rent first....or try and buy? our credit is pretty much crappy now because of our financial situation...would we even be able to get a loan?? 10% penalty on a $190,000 home the penalty, i believe is 10% of the principle balance. we actually have 2 loans on this house (80/20.) the first loan for $152,000 is the one with the penalty. our principle balance on that loan is currently $151,960 because for the first 3 years we are paying interest only (we made a $40 principle payment last year sometime.) so it would be 10$ of that balance. the second loan is $38,000 and the balance is at $37,777.

First... call your current mortgage company and ask to renegotiate the terms of your loan. It sounds like you were victim to predatory lending and if your mortgage company will not release the penalty clause, then you should consult an attorney. Second, paying the penalty or not depends on a lot of things. Like how much is the penalty? I am suspending answers for a moment to briefly consider your last predicament--because it comes into play with the penalty. If you're going to move, you will want to rent. Period. There is really no possible way to REALLY know the area, the market for the area, or how available the amenities you want/need are until you live in an area and decide that you like it--and all the people/culture that come with it--or you don't. If you buy a place there and decide you hate it, and then realize you paid more for the place because you were out-of-towners and didn't REALLY know the areas, you're going to dig your grave all that much deeper. What happens if the area of SC you decide to move to has a true and solid allegiance to photographers who are somehow related or connected to people you know... and you know nobody. You'll be moving again. When relocating, it is good to be flexible. If you have friends or family there who have been there long enough to know the good, the bad and the ugly--great. But THEIR idea of good, bad and ugly may not match yours... kwim? So... knowing you're going to rent, look at how much rent is in the area you're planning to go to. Now look at how much that penalty (and possible loss on your house) is going to cost you. Can you make those payments? If so... then go. Also, if you happen to make a profit on your house, you will be subject to capital gains tax. It's a tax on the PROFIT portion only. If you made any improvements to the house that will stay when you leave (like wall-to-wall carpeting, replacing a toilet, etc.) then you can submit receipts for those things and essentially it reduces your profit amount. So if you were going to see $10,000 of profit but you spent $5,000 on a new roof--your profit is now $5,000 and that's what gets taxed. If you can wait until November (past the date in November that you bought the house--even if you close on the house the day after the date you bought it), you will avoid capital gains altogether--no matter what you do after you leave the house. You don't have to buy another house to avoid capital gains (that's the old law--the laws changed in 1997). And yes, you will get a loan. You'll pay way more interest and have worse terms than you would have otherwise. Get out of your house, go rent in a new place, pay EVERYTHING on time (this is a huge boost to your credit score) and pay down your debt. In 2-3 years, you'll be fine.

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Beginning january 1, 2013, obamacare imposes a 3.8% medicare tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income. in february 2010, 5.02 million homes were sold, according to the national association of realtors. on any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property can push middle-income families over the $250,000 threshold and slam them with a new tax they can’t afford. this new obamacare tax is the first time the government will apply a 3.8 percent tax on unearned income. this new tax on home sales and unearned income and other medicare taxes raise taxes more than $210 billion to pay for obamacare. the national association of realtors called this new medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation. [gop.gov] www.bluegrassbulletin.com/2010/05/� ��obamacare-impose-a... penalties on individuals. individuals will pay a yearly penalty of $695, or up to 2.5% of their annual income, if they cannot show they have purchased a government-approved health policy. penalties on families. families will pay a yearly penalty of $347 per child, up to $2,250 per family, if parents cannot show they have purchased a government-approved policy. penalties on employers. business owners with more than 50 employees must buy government-acceptable health coverage, or pay a yearly penalty of $2,000 per employee if at least one employee receives a tax credit. tax on investment income. obamacare imposes a 3.8% annual tax on investment income of individuals making $200,000 or more and on families making $250,000 or more. the new tax is not indexed to inflation, so more people will fall under it each year. seniors on fixed incomes and people with iras and 401(k) plans will be hit particularly hard. tax on cadillac health plans. starting in 2018, imposes a 40% annual tax on health care plans valued at $10,200 for individuals and $27,500 for families. medicare tax increase. requires single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9% in medicare taxes. tax on home sales. imposes a 3.8% tax on home sales and other real estate transactions. middle-income people must pay the full tax even if they are rich for only one day the day they sell their house and buy a new one, if the profits push their adjusted gross income above the yearly limits. tax on medical aid devices. creates a new 2.9% tax on medical aid devices. certain items intended for personal use are exempt. tax on tanning. imposes a 10% tax on services at tanning salons. business owners will collect the tax from customers and send it to the federal government. this appears to be the first federal sales tax in the united states. www.snohomishtimes.com/​snohomish news.cfm?inc=story&...

They couldn't have gotten away with this in a decent real estate environment. The RE profession has been slammed unbelievably hard with the crash or they probably could have put up more of a fight. Currently, it's difficult for me to even see this as a big deal. Foreclosures are still huge. Many of the home sales are foreclosures and short sales, and accompany zero profit for the home seller. IN fact, most sellers are paying people to buy their homes right now. This just extends the misery, in my opinion. Keeps people more dependent on the government. Liberals are concluding their wrecking of this nation in 4 years.

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The single family house is primary residence bought at $260k with $50k down. current market price is approximately $390k or more. is it better to transfer now as a gift or place it in my will as inheritance with deed/trust for my niece to avoid taxes on me. i know i am entitled up to $250k income for sale of primary residence, but my niece just came from a foreign country and working as a nurse for two years. she recently got married and now has a family of her own. she has no enough savings to purchase the house at market value and i would like to sell or transfer the house to her at cost or loan balance of $190k. what are the repercussions on me regarding the equity gift? can i sell it at cost of $260k to her, below the market value with no penalty? please advise. thank you.

Is she a citizen? that changes some rules. If she is not a citizen make sure you tell the attorney involved in the process this as it can be very very important. if your goal is to avoid taxes and you dont need to spend down for medicare it is probably best for you to pass it in a will as she will get the step us basis in the property and won't have to pay gain. Unless you are near the estate/gift tax limits then you should definitly consult wiht your attorney on this matter as well as without 100% info it is impossable to tell

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My husband and i bought a house a year and a half ago (november of 06.) we pretty much maxed ourselves out when we bought it because it had an attached office which we thought would be perfect for our studio/meeting room. well, no one seems to need/be able to afford a photographer this year and our weddings are down by like 15 weddings than average. so basically, our income has decreased about $15,000. my husband has gotten a second job, but we are still just getting by. we basically pay the bills, eat spaghetti and that's it. our predicament is (yes, i know this was stupid, no need to comment) we signed a loan that had a penalty. we have to pay a penalty if we sell our house or re-do our loan within 3 years of the purchase. so we have until november of '09. would it be stupid to pay the penalty and sell (and possibly lose money because of housing prices?) or should we stick it out. also, when we do sell this house (we are def selling as soon as our penalty us up is not before), we are planning on moving to sc. you know, start fresh. would it be wise to rent first....or try and buy? our credit is pretty much crappy now because of our financial situation...would we even be able to get a loan?? typo - advice, not advise 10% penalty on a $190,000 home

Your certainly in the same boat with a lot of people so don't be too hard on yourself, focus on what needs to be done. My question is what is the appraised value of the home, not the assessed value that the town uses or what some site on the internet says, but the appraised value. This way you know if you are upside down on your mortgage, meaning you owe more than it's worth. The appraised value will also assist you in setting a possible selling price, for which you would need to speak with a local realtor to see if you could get what the appraised value is. The problem is if you are upside down, you'll owe even more due to the pre-payment penalty. The other issue here is if you do sell, do you have enough to move or get an apartment? SC and NC are nice, and they are cheaper in terms of some living expenses, but the job market is not that hot, so you better have a job in place (at least in NC, everyone that I spoke with when looking for an apt asked if I had a job, said no, they wanted 3-6 months rent in advance on top of the application fee, down payment, etc). Call a realtor, call your mortgage company, see what can be done, best of luck

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I am about to put my home on the market. i love it but it is not baby-friendly and i have a 10-month old son. built in 1928 beautiful hardwood floors etc.... when i bought it the home inspector gave me a catalog of issues, but none of them overwhelming. the house appreciated rapidly and i put on new and upgrade roof, upgraded windows. basically gradually modernizing the house. so now i want to sell before finished upgrading/repairing. the house has plaster walls and knob type electrical systems. seem to work fine though. gravity furnace looks like its 100 years old, but works like a dream. but at time of purchase inspector told me one wall of the foundation (interior wall) -- could use some shoring up -- but not urgent. i had estimates of approx. $10k for just this wall, or $22k for the whole house. so i planned to just do the whole thing even though not necessary just yet, i have not done this repair yet. now that i want to sell, i wonder if i should get this done now? or wait for potential buyer and just knock the price down $25k. now that my equity is slim, i do not have $25k in cash or credit available. i would probably need to get installment payments (probably do not exist) or take the money from my ira and eat the 10% penalty. houses similar to mine are selling anywhere from $525k-$650k. i need $530k to get out breakeven. house was worth $540k when i bought it in 2003 it shot up to $650k before market crash. i planned to try to sell at $569k - allowing to me to drop it $40k if necessary. is this a bad strategy, should i just bite the bullet, repair foundation and know that house with new foundation will attract more buyers? i am so confused! foundation last looked at 2005, and no new issues at that time, but someday it will need to be replaced (concrete had large stones in it in 1928, and eventually will need work).

Try and narrow down your estimate . $525 - $650k is $125k . You should be able to do a market analysis within $20k. If your market analysis comes close to your $569k (uptodate - no work) get a written cost of the work to be done (22k) and list your home for $547k showing your buyer you have discounted for the work to be done. Include the estimate and market analysis in your listing material.. You can say you discounted the work since you can not afford to get it done.