Don’t worry… this is not going to become a site on foreclosure sales. But as I frequently explain to buyer clients, there’s plenty to worry about when purchasing a foreclosure.
One area of concern that can be “laid to rest” is the Maine Real Estate Withholding tax required of non-resident sellers. (Compliance is considered the buyer’s responsibility.) Most banks and asset companies selling foreclosures are, in fact, “out of state” and there has been some confusion regarding how to handle this, even among closing agents. Here’s what the Maine Department of Revenue says,
If a property is subject to a foreclosure sale and the consideration received for the property does not exceed the debt secured by that property, no Maine income tax withholding is required and Maine Revenue Services does not require a withholding exemption certificate (see 36 MRSA § 5250-A(3-A)).