Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, July 24, 1995 TAG: 9507240124
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
The couple made very few payments to us, and we sent notices and so forth to no avail. The couple also was behind in the payments to the bank that financed their mortgage. The bank sent us notification of foreclosures on more than one occasion. However, the couple would make the payments, and we were notified that the foreclosure was canceled.
We moved to a neighboring town. We just learned that the house was sold several years ago. My husband and I were never contacted about the sale and the second deed of trust. I was told the house was sold and the bank did not foreclose, but I am not sure if this is so. We are aware that banks require lawyers to check titles for such oversights.
I do not understand why we were never contacted in regard to our interest in the property. What procedures do we need to address to collect our money? Where do we start our research without having to get involved with lawyers.
A: Michael S. Ferguson, a real estate lawyer with the Roanoke law firm of Osterhoudt, Ferguson, Natt, Aheron & Agee, said you do not have enough information for him to answer your questions fully. But here is his advice on how you should start.
You should go to the circuit court clerk's office in the locality where the house is located. All documents there are open to the public. Have the clerk help you to find the deed taking the property out of the names of the defaulting couple.
If there was no foreclosure by the first lien holder, Ferguson said, then the house still secures the first lien as well as the second lien. In that case, the new owner should be contacted about payment.
But if there was a foreclosure, Ferguson said, then the second lien was wiped out. That means while the debt to you is still owed by the defaulting couple, the house no longer secures the payment. The defaulting couple could be sued for the balance due if they can be found, Ferguson said.
Normally a second lien holder, in order to protect the second lien by bidding at the sale, is notified that a foreclosure will take place, Ferguson said. In this case, since you moved, that notification may have been impossible if no forwarding address was available to the holder of the first lien.
Tax freeze
Q: I can qualify for a freeze in the taxes on my house. When this house is sold, in case I have to go into a nursing home in later years, do my heirs have to pay extra real estate tax from the time of the freeze until the time it is sold? If property values go down, what will become of the frozen tax rate then?
A: The answer to your first question is no. Margaret Lindsey, who handles tax freeze questions for the office of Roanoke's revenue commissioner, said the taxes pick up again from the time the house is sold. The commissioner does not go back and pick up taxes that already have been waived.
In answer to your second question, Lindsey said the city enters new assessed values into the computer. The computer is programmed to select the lesser of the two amounts (the taxes on the assessed value versus the tax freeze) for determining your tax bill. You will not suffer if your property value goes down.
IRA distributions
Q: At the age of 701/2, I chose the option of receiving distributions from my IRA based on my life expectancy. My age now is 741/2. Can I now change my option to a plan based on my life expectancy and the life expectancy of a designated beneficiary, my son? Combining the two will result in a longer payout period, which is my objective.
A: No, it's too late to make such a change.
Sandy Mikulecky, who works for the retirement services section of Crestar Bank, said you established the payout of your IRA when you chose your option at the age of 701/2. You are free to change your beneficiary for the account, she said, but the rules do not allow you to switch from a single to a joint life expectancy. As with most types of annuities, she said, once you choose the matter is settled.
If you had elected a joint life expectancy, on the other hand, you could later increase the rate of payout by changing to a single life. She said the rules favor a quicker payout of accounts during retirement.
by CNB