How WIll a Foreclosure Affect My Income Taxes?


Video Summary

 

How does a mortgage foreclosure affect your income taxes?  Well, it should not affect your income taxes because the lender has not forgiven any of the debt on your loan after they conclude a mortgage foreclosure, so you should not receive a 1099-C, which is a report to the Internal Revenue of how much debt has been forgiven.  So therefore, you should not have any tax consequences as a result of a foreclosure action.

I have seen lenders send out what they call a 1099-A and that is a report to the Internal Revenue Service that the property has been abandoned.  That doesn’t mean that the debt has been forgiven and therefore, I am uncertain as to how the accountants are dealing with 1099-A’s whenever your property has merely been foreclosed.

So if you have any other questions about a 1099-C or a 1099-A, please give me a call at (727) 847-2288 and we can discuss it.  Thank you.

 

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How Often Should I Update My Will?

 

Video Summary

Hi.  I’m Chip Waller.  How often should you update your will?  Well, the question is answered by saying when there’s been a change in circumstances: in the event that you have a death in your family, in the event that you relocate, in the event that there’s a birth in the family, grandchildren, or when you have sold property that you had left to someone in particular.  So anytime there is a change in your circumstances, that’s the time to update your will.

I suggest that you review your will at least once a year in order to look at it to see if that’s what you wanted to say, and whether or not there have been any changes in circumstances since you’ve made out your will.  If so, then give us a call and we’ll be glad to update your will.

In addition to your will, you might want to check in on whether or not you have a living will ,which says that you don’t want your life prolonged artificially; a healthcare surrogate, which is a healthcare power of attorney; a HIPAA waiver, which authorizes someone to make medical decisions for you if you’re unable to do so; and also a Durable Power of Attorney, which could be executed to help you in the event that you would lose your mental or physical capacity, and authorize someone else to transact business for you.

So if you have any questions about your will or any of your estate planning documents, give me a call at (727) 847-2288.  Thank you.

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What is a Land Contract?

 

Video Summary

Land contracts are not used in the State of Florida. A Land Contract is written in such a way that if the buyer of a property fails to pay, the contract is terminated and the sale is ended. This eliminates the need for the foreclosure process. Florida, however, is a Judicial Foreclosure state so land contracts cannot be used.

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What is a Lease with Option to Purchase?

 

Video Summary

A lease is a landlord-tenant relationship wherein the tenant takes occupancy of the property and agrees to pay a designated monthly amount for a set period of time. In the case of a lease with option purchase, the seller agrees to sell the property to the buyer for a fixed purchase price during the term of the lease. Generally, a certain amount of the monthly rental payments can be applied toward the purchase price. The “option” refers to the buyer’s right to choose whether to purchase the property.

The advantage of a lease with option to purchase is that if the tenant fails to make payments, the buyer may pursue the eviction process rather than the foreclosure process, which takes much less time. In the case of owner financing, a lease with option to purchase is advisable if the buyer does not have a substantial amount of money for a down payment.

If you’re interested in arranging for owner financing as the buyer or seller of a property, please give us a call at (727) 847-2288.

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What is an Agreement for Deed?

 

Video Summary

An agreement for deed is a form of owner financing wherein the seller retains the title to the property and allows the buyer to take possession of the property. The seller provides equitable title, which means that the buyer has all the legal rights to the property except for legal title, which is held by the seller for the purposes of securing payment. However, Florida law treats an agreement for deed the same as a Note in Mortgage. Our law office generally does not use agreements for deed because there is no particular advantage over a Note in Mortgage.

If you have any questions about buying or selling a house, agreements for deed, notes in mortgage, or other related matters, please give us a call at (727) 847-2288.

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