Complete a HFS 8, Real Property Form, for each piece of real property in which a client has a legal or equitable interest. Also complete a HFS 8 for a mobile home taxed as real property.
NOTE: When completing a HFS 8 on a mobile home, enter the make, year, model number, cost, name and address of lien holder, if any, amount owed, taxes, and insurance.
Also complete a HFS 1786, Title Search Sheet, entering all unreleased recorded mortgages, trust deeds, liens, unredeemed tax sales, and court actions affecting the property. Send a copy of HFS 8 and HFS 1786 to the Technical Recovery Unit. File the
original HFS 8 and HFS 1786 in the case record.
Suggested sources for completing a HFS 8 and HFS 1786 include:
- Sales agreements
- Court House Records (County Treasurer and County Recorder of Deeds)
- Contracts for Deeds
- Real Estate Tax Statements
Determine the equity value of property as follows:
- Subtract all outstanding debts against the property from the fair market value of the property.
- Obtain the amount owed on the property from the closing statement or transfer that was prepared by the realtor or attorney, or from the person or institution holding the mortgage or debt.
- Obtain the fair market value of the property from a reputable realtor or other community member recognized as knowledgeable of property value (banker, tax assessor, auctioneer, etc.).