Yes, The Bridge will resell the property with its national auction partner and the proceeds of the auction sale will pay off the mortgage balance first, with the remainder going to The Bridge (after normal closing costs such as escrow, title fees, transfer tax, property commissions, etc.). Prior to the auction we will determine if the likely value exceeds the mortgage balance and we may have to reject any asset that does not have sufficient equity to result in cash proceeds to The Bridge.
If your property has a high value, you may elect to donate a portion of the equity to The Bridge (falling under a Bargain Sale-IRS Section 170).
Any type of real property may be donated that has positive equity, clear title, and no environmental issues. Common property types are land, second homes, rental property, commercial property and estates. We do not accept timeshares or mobile homes.
Yes! Our partner has a national property auction platform, and a national title company partner so we can quickly vet assets and convert them to cash without The Bridge ever having to own or operate the asset. Also, using the IRS Bargain Sale, The Bridge can accept property with mortgage debt and high value assets with a portion of the equity going to the The Bridge (and a portion in cash to donor). Donors don't need to pay for anything and only need to fill out a seller disclosure and sign the deed at closing. We take care of everything else!
property donations are based on the full appraised value, not the sale price. Capital gain tax may also be avoided (excluding the mortgaged portion or cash received). The deduction can be carried forward up to five years following the year of sale.
In most cases, you may deduct the difference between the cash received and the fair market value based on an appraisal specifically completed to assess the
value based on IRS gift appraisal guidelines. You many not deduct proceeds
that were applied to pay off mortgages or back property taxes.
Most donated properties will be completed within 90 days, and some as quickly as 14 days. Our goal is to maximize the value of the property.
You do not have to pay any commissions. If your property is currently listed with a broker, The Bridge will pay the commission owed based on the list price, or tax assessor value if there is no list price. There are no closing costs to the donor and all unpaid liens will be paid off at closing. The donor is generally not asked to pay anything out of pocket and prepaid property taxes and assessments will be remitted back to the donor at closing.
In short, it depends on the transaction. If The Bridge can’t achieve a resale sales price that results in a surplus, or if there are title or serious repair issues found, the nonprofit may terminate the donation agreement.
We have the ability to process properties with environmental issues, however, only high value assets would be considered due to the risk and complexity. We have investors specialized in environmental clean up and often issue indemnities to sellers via complex insurance placements.