July 2022 - 4 Brothers Buy Houses

July 28, 2022

Everything You Need to Know About Washington DC Real Estate Taxes

DISCLAIMER: Our blog posts are intended for educational purposes only. They are not to be used as financial, tax, legal or real estate advice. Please contact a tax professional, real estate attorney or other professional for clarity on your specific situation.

Many people forget about real estate property taxes when selling their home in Washington DC. But this is something that you’ll definitely want to consider since they can impact your monthly mortgage payment or any gains on the sale of your property.

If you’re planning to sell your house in Washington DC, it’s important to familiarize yourself with local real estate taxes, property taxes and capital gains. This way, if you do have to pay any of these taxes at the time of closing, you’ll know what they’re for.

Here’s everything you need to know about real estate taxes in DC.

Different Types of Taxes, Explained

When you’re a homeowner in Washington DC, you’re responsible for paying taxes. Taxes are the primary source of revenue for governments, and they are used to fund things like streets, schools, emergency services and welfare programs.

Here are the different taxes that homeowners might pay:

Property tax. Property tax is a major source of revenue for Washington DC. According to this article, property taxes in DC average 4.6 percent of income, making it one of the places with the highest taxes.
Capital gains tax. A capital gain happens when you sell an asset for a higher price than you bought it for. However, most people do not have to pay capital gains tax. Unless you made gains above $250,000 for a single person or $500,000 for a married couple, you don’t have to worry.
Real estate tax. Real estate tax and property tax are essentially the same thing. Most people refer to real estate taxes as property taxes. However, property taxes can include other assets such as vehicles, boats, RVs, planes and motorcycles.

Do You Have to Pay Taxes When You Sell Your Washington DC House?

Taxes might be on your mind if you’re planning to sell your DC home. But you’ll be glad to know that you’re unlikely to make enough money to incur a tax burden. Capital gains taxes are applied to the amount of gains you made, and unless those gains are $250,000 (single person) or $500,000 (married couple), you don’t owe anything.

There are a few other qualifications you’ll need to meet to avoid paying taxes. You can only take the capital gains exemption if the house has been your primary residence for at least two years. And, you must be the home’s owner. If you were living in your parents’ home, you would not be exempt.

Now, if you are planning to sell a second home, it is not entitled to the capital gains exclusion. This is because it doesn’t meet the IRS definition of a primary residence. If you want to avoid capital gains taxes on a second property, you’ll need to rent it out, perform a 1031 exchange or use it as your primary residence.

Get a FREE Cash Offer on Your DC Property Today!

4 Brothers Buy Houses pays cash for houses in Washington DC. We help homeowners solve their real estate challenges – and we can help you solve yours! We’ll waive your appraisal, inspection and most closing costs. And because we buy houses as-is, you’re not responsible for any repairs or improvements. Contact our cash buyers today to get your free cash offer.

July 18, 2022

What to Expect from the VA Probate Process – and Your Options for Selling

Probate in Virginia is a court-supervised legal process that happens when someone dies. The purpose of probate is to give someone, usually the surviving spouse or another close family member, authority to gather and distribute the deceased person’s assets. And one of those assets is their house.

If you are currently dealing with a Virginia house in probate, it’s helpful to understand the process and your options for selling, if you choose to do so. Many executors decide that it’s best to sell their loved one’s house because they don’t have the time or money to maintain it. Selling the property allows them to liquidate this asset and distribute it to the heirs.

Let’s learn more about the VA probate process and your options for selling.

Is Probate Required in Virginia?

The short answer is yes, probate is required in the state of Virginia. However, there are instances where probate may not be required, such as if the estate is placed in a revocable living trust with named beneficiaries.

Not everything needs to go through probate. Things like retirement accounts, life insurance policies, securities and stocks don’t need to go through probate because there are named beneficiaries. But property like houses and cars often do.

How Long Does the Probate Process Take in VA?

Probate is a long process, so plan to be patient. A small estate may only need four to six months, while larger estates will take more time. If there are delays, probate for a large estate can last for years.

Fortunately, there are ways you can help speed up this process. Having a will, updating beneficiaries and signing a self-proving affidavit are all ways to make things move faster. And while there is no deadline for filing probate after a person dies in Virginia, sooner is typically best.

Can I Sell a House During Probate in VA?

Yes, you can sell a Virginia property while in probate. However, you’ll need to be aware of how the proceeds from the sale will be distributed. For example, after the house is sold and the proceeds are applied to the probate cost and estate debts, any remaining profits will be split among the beneficiaries.

Due to the way the profits are split, some executors find it best to sell the house for cash. They don’t have to pay realtor commissions, make repairs or pay closing costs. And, the process is quick, usually taking about two weeks from start to finish.

The benefits of selling a house for cash in probate are:

No realtor fees or commissions
Most closing costs covered
No repairs or home improvements – house is sold as-is
Quick closing – usually in about two weeks
No appraisal, inspections or showings
Leave the belongings if you wish!

If you are thinking about selling a VA house for cash in probate, contact 4 Brothers Buy Houses. We frequently work with people in probate, and we can help determine the best options for you and your family!

July 10, 2022

My Hyattsville MD House Has an Auction Date. Can I Stop Foreclosure?

Foreclosure isn’t a quick process. In Maryland, the process typically takes about 90 days. But this timeline can take much longer depending on how backed up the courts are. However, when you receive an auction date for your MD house, you’re racing against the clock. The good news is that you still have time to prevent foreclosure, even if the auction date is just weeks away.

Stopping Foreclosure in Hyattsville MD

Foreclosure in Maryland is not unusual. Maryland is the seventh most expensive state in the United States, with housing prices 66 percent higher than the national average. A typical single-family home in the Hyattsville area is around $350,000. And even though the average household income in Hyattsville is $93,527, the area still has a poverty rate of 10.33 percent.

If you are struggling to pay your mortgage in MD, you are not alone. But keep in mind that you do have options. You do not have to let your house go into foreclosure.

Chapter 13 Bankruptcy

One option you have is to file bankruptcy in Maryland. Unlike Chapter 7 bankruptcy, you do not have to sell your house in Chapter 13 bankruptcy. This form of bankruptcy allows you to keep your home and avoid foreclosure while stopping creditors from pursuing debts against you.

However, filing bankruptcy is always a last resort. It’s a long process that can negatively impact your credit score by 200 points or more. A Chapter 13 bankruptcy also stays on your credit report for seven years and can make it difficult to get new financing.

Negotiate with Your Lender

You should always be in communication with your lender. The more open and honest you are with them, the more they can help you. That being said, your lender’s goal is to get their money.

Try to negotiate with your lender and see what options you have, such as loan modification, refinancing or forbearance. Your lender may even agree to accept a deed-in-lieu arrangement. Although you won’t get to keep your house, it does prevent foreclosure.

Pay the Balance

This is probably an unlikely situation, since you would have paid your delinquent mortgage by now if you had the money. But it’s still something to consider, as a loan from a family member or an unexpected inheritance could bring the financial windfall you’re in need of.

You can also sell your Hyattsville house for cash, which would give you money to pay off your delinquent mortgage. As long as the lender accepts the payment, the foreclosure process stops and you can continue making your regular mortgage payments.

Sell Hyattsville MD House for Cash Before Auction Date

Since a traditional sale can take months, selling isn’t a feasible option to stop foreclosure if there’s already an auction date. But you can complete a cash sale. With this arrangement, a cash buyer purchases your house using their own money. No bank financing is needed.

4 Brothers Buy Houses can usually complete a cash home sale in two weeks. We also waive the inspection, appraisal and most closing costs. Each situation is unique, so it’s important to find out if a cash sale is in your benefit. Contact us today to learn more about selling your Hyattsville MD house for cash!

July 1, 2022

Can I Sell My Washington DC House While in Forbearance?

Forbearance is when your mortgage lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. You are not off the hook for these payments. You will have to pay the reduction or paused payments later on.

The purpose of forbearance is to help homeowners deal with financial hardship. Unfortunately, not all hardships are temporary. Some go on much longer than expected. If you have found yourself in this situation, you may be wondering if you can sell your Washington DC house while in forbearance.

Yes, You Can Sell Your Washington DC House in Forbearance

4 Brothers Buy Houses works with people who are in forbearance. Not only can we help you sell your house, but also we can sell it fast. This is important, as you might not be able to find a buyer in a short amount of time.

Also, we do recommend looking at all of your options, as one might work out better than another. For instance, if you want to stay in your house, you can work with your lender to refinance your mortgage or modify your loan. But if you want to sell your house and start fresh, selling to our cash buyers in Washington DC may be worth it.

What are the Benefits of a Cash Sale in Forbearance?

Many people don’t consider a cash sale in forbearance, but it can be a great alternative to a traditional sale. It’s cheaper, faster and easier, which are all great perks for you! Below are some of the benefits of selling your Washington DC property to 4 Brothers Buy Houses:

Work with local buyers. Our house buying company is not a national company that will pressure you into selling your house. We are local buyers who live and work in the area. We care about our customers and help them work through their real estate challenges.
Avoid selling costs. Selling a house is not cheap. A traditional sale involves many costs, including realtor commissions, marketing fees, repairs, showings, closing costs and more. You can avoid all of this with a cash sale. We even waive most appraisals and inspections!
Sell quickly. Most cash sales take about two weeks or so. This means that you could be closing on your DC house within the month! If your hardship is extended and you need to relieve yourself of your mortgage payments, a cash sale will help you out.

Get a Free Cash Offer on Your DC House

It is possible to sell your Washington DC house for cash while the mortgage is in forbearance. You may have to work out an agreement with the lender and use your profits to pay off your debts, but this will help you get the fresh start you’re looking for. To find out how much 4 Brothers Buy Houses will buy your house for, contact our cash buyers today.

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