Will my parent owe taxes for receiving foreclosure surplus funds, and will they get a tax form for it? – North Carolina Short Answer In North Carolina, foreclosure surplus funds are usually treated as the leftover sale proceeds that belong to the property owner (or, if the owner has died, the owner’s estate/heirs). Whether a…
What am I supposed to do about a tax form for canceled credit card debt that was issued in the name of someone who is deceased? – North Carolina Short Answer In North Carolina, a tax form for canceled credit card debt (often a Form 1099-C) issued in a deceased person’s name is usually a…
If surplus funds have to be claimed in my parent’s name first, can my parent legally give the money to me afterward? – North Carolina Short Answer Yes—if North Carolina law says the surplus funds belong to the parent (as the legal heir or other entitled claimant), the parent can generally give the money to…
If my parent gifts me the surplus funds, do they have to file a gift tax return? – North Carolina Short Answer North Carolina does not have a separate state gift tax return in the way many people mean “gift tax return.” If a parent receives foreclosure surplus funds and then gives some or all…
How can we challenge a court order that gave the surviving spouse all foreclosure surplus funds when a known child heir exists? – North Carolina Short Answer In North Carolina, the usual way to challenge a clerk’s order that paid all foreclosure surplus funds to a surviving spouse (when a child heir exists) is to…
What happens to the surplus funds if the legal heir refuses to cooperate or can’t be located, and is there a deadline to claim the money? – North Carolina Short Answer In North Carolina, if foreclosure surplus proceeds cannot be safely paid out because an heir will not cooperate, cannot be found, or there is…
Do we have to open a probate estate to collect foreclosure surplus funds, or can the heir petition for the surplus without probate? – North Carolina Short Answer In North Carolina, foreclosure surplus funds are usually paid to the owner of record or, if the owner has died and there is no active estate, paid…
How do two co-owners claim surplus funds when one owner is incapacitated and an adult child has power of attorney for that owner? – North Carolina Short Answer In North Carolina, foreclosure surplus funds are paid to the people legally entitled to them, and when there is any doubt, the surplus is typically paid into…
How do we find out whether there are surplus foreclosure funds available to claim and where they are being held? – North Carolina Short Answer In North Carolina, surplus foreclosure funds (if any) usually come from the sale price after the sale costs, taxes/assessments, and the mortgage payoff are paid. If the trustee or other…
What happens if there are other liens or judgments against either owner—can those reduce or take the surplus funds? – North Carolina Short Answer Yes. In North Carolina, valid liens and certain judgment claims can attach to a co-owner’s share of foreclosure surplus funds and may be paid from the surplus before any remainder is…
