You may recall that we have a contract on a house that we’re calling Kerrville Folkways, because that’s the name of the street it’s on. Besides that, some of us have actually attended the Kerrville Folk Festival here in central Texas, and we like it.
We got a signed contract on this property back in November, but we still haven’t closed on it. In February, we shared that we were waiting on the IRS (the tax people, if you are not from the US) to pronounce what it was going to do about a lien on the property. We have been diligently checking in with the listing agent every week or so since. You know, the government takes its own sweet time, and the needs of people to have housing, or to sell their houses, well, those aren’t really important to whoever is working on these liens.
Finally there is some news! It’s not the greatest, but at least there is movement. The selling agent finally sent an email to Carol that explained what the IRS came up with. Hooray for them! It turns out that there is close to $4,000 more owed to the IRS than our current offer. And the owners for some governmental reason, are not allowed to contribute this money. It looked like we would have to do it, or the house would toddle off to foreclosure, where it would languish even longer.
Well, what should we do about this, we wondered? It didn’t take long to come to the conclusion that, even with the difficulties, the house will be a good deal. Of course, even with us doing it, the house is not an easy one. I guess that’s why it’s our project! It’s one sad house.
Carol and Russell originally were going to buy it themselves to be a homestead flip, but since it didn’t qualify for VA financing, and we couldn’t include the renovation in our other option, we decided it will be a Hermit Haus project instead. Hoping we can soon bring the house back to its former glory as one of the nicest houses in a very desirable neighborhood in north Austin.
At least this way the seller will not have a foreclosure on their record, and they will not have to pay the additional money just to get out of the lien. That’s what we want, for all parties involved to feel like they are getting what they want.
Onward to closing and then renovation!