Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 month ago

Can I buy my dad's house if he owes back taxes? In Nebraska?

My dad owes back taxes on the house. Due to medical reasons leaving him unable to work he can't pay the taxes. The house itself is paid off w/ no mortgage.  He is debating filing bankruptcy but I live here too (I just moved in a few months ago and had no idea the problem until just recently.)   I should be able to bring in enough money to pay the back taxes in a couple months, as it's only approx $5000.  I want to help him but I don't want to sink 5K into a house without owning it. I want to offer him a deal that if he signs over the house to me I'll pay the back taxes. He's getting up there in age anyway (I'm basically doing home health for him while living here and made it clear he won't live by himself again as he doesn't take care of himself) and with his mobility problems I fear he may end up needing to go to long term care anyway within the next decade or two. 

-Side note: This isn't a cushy well taken care of property. It needs serious septic work, bathroom redone, laundry room redone, flooring redone, ect, to where I have spent a few hundred in buying rugs to save feet from the unfinished wood floor (he tore up the carpet) and already done some work on it to get it up to standard.    

Update:

I have no intention of kicking him out in anyway. Stay in the house or leave the house I will be taking care of him until I am no longer able to do so, so when actual lifting equipment is needed to help him out of bed. I want to make the house into more of a home for us.  He will lose the house if the taxes aren't paid, as he is several years behind and isn't attached to it except that he doesn't want to be homeless. I am paying for all utilities and groceries at the moment.

14 Answers

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  • 1 month ago

    He can't move the deed prior to paying the expense lien.

    He can't blessing you a house (or sell it at a silly cost) and afterward go into chapter 11.

    You can make a genuine proposal to purchase the house at a reasonable cost. Some portion of your installment will be utilized to cover the duties.

  • garry
    Lv 6
    1 month ago

    he is allowed to sell the property to you , but any money he gains from the sale must pay the taxes . you'll still own the house but your dad has to pay the taxman .

  • 1 month ago

    If he will agree to it then you can buy the house for any agreed to price.  You better make sure those taxes are paid or any money you give him is gone.  Also, assuming the house is worth far more than the taxes, it might be a more fair idea to offer to pay the taxes for 20% of the house, or something (heck, make it half if he'll agree - just add yourself to the deed and you will be co-owners)

  • 1 month ago

    When your mortgage company does a title search, it will find out the back taxes are owed. You may be able to negotiate a mortgage by telling them you will put amount of back taxes owed as down payment.

    Just re-read it. If your father agrees to sign papers signing the house over to you I think the taxes have to be paid before that happens. Back taxes would be considered a lien on the property meaning someone has a claim to part of the value of the property. You may want to talk to a lawyer for some advice.

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  • 1 month ago

    Of course you can buy it if he agrees. You and your dad will have to see an attorney to file the proper paperwork, but there's no reason he can't sign the house over to you for paying the tax on it. And here's a tip:  most of the time when you declare bankruptcy, you can't charge off taxes. Bankruptcy will not let you get out of owing taxes, alimony, child support or other mandated bills like that. The attorney could tell you that too.  Declaring a bankruptcy won't help your dad. He should also investigate disability if he's  medically unable to work--again, the attorney can assist with filing those papers.

    It might be a very good idea to put the house in your name, because if your dad ends up in long-term care where Medicaid gets involved, he might lose the house anyway.  

  • 1 month ago

    Years ago, I purchased my parents' home.  There were no back tax issues but they needed long term care.

    The sale was fine as long as I paid at least 2/3rds of the tax value for the home.

    Funny (long) story.....The mortgage guy I used did not know how to calculate 2/3rds.  He kept multiplying by 66.66% and coming up with a number that was $40 short of 2/3rds which would have violated the law.

  • Judy
    Lv 7
    1 month ago

    Besides the things others have mentioned, if he goes into long term care and needs Medicaid within 5 years, any sale would be voided.

  • ?
    Lv 7
    1 month ago

    He cannot transfer the deed before paying the tax lien.

    He cannot gift you a house (or sell it at a ridiculous price) and then declare bankruptcy.

    You can make a serious offer to buy the house at a fair price. Part of your payment will be used to pay the taxes.

  • Anonymous
    1 month ago

    Maybe, maybe not.  In all likelihood, there is a lien on the property for the taxes owed so he can't sell the house until that lien is paid off.  Further, he would be a fool to sell you the house for a lousy $5k.  Your so-called "deal" paints you as a greedy daughter.  You can claim anything you want to him but you should be thinking about making him feel secure.  If he cannot afford the house anymore, what he should do is sell it and buy a cheaper house - one he can afford.

  • 1 month ago

    Ordinarily, yes, but not when he is about to file bankruptcy.  If he signs it over to you and then files for bankruptcy, the creditors could try to get the house, or criminal charges for "fraudulent conveyance" (basically, putting something in someone else's name to keep creditors from getting it) could be filed.  You both need to talk to lawyers before doing anything.

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