Investments can reap great rewards, but with these rewards comes risk. Putting hard-earned money into investment property and hoping for a payoff may not work out as planned. Mortgages increase while property value decreases. Suddenly, cash flow is in the negative, and the investor is facing dire consequences for late or delinquent payments.
For more than 20 years, Kurland Law Group has provided personalized service and individualized strategies to clients experiencing serious financial problems. Attorney Sari Kurland, founder of the Maryland law firm, recognizes that money-related struggles are not exclusive to the poor or middle class. Higher income Rockville residents taking a chance with investment property also need help from an experienced lawyer.
A short sale of an investment property may not wipe out all financial obligations, specifically the Internal Revenue Service-related implications of any amount forgiven by the bank. Investors will receive a 1099 at the end of that fiscal year, which will add to their tax burden. However, a deficiency judgment following a foreclosure of the investment property would create a much larger financial obligation, not to mention damage to a credit rating.
Avoiding the inevitable resolution adds unnecessary time and forces investors to pour good money after bad into a property that may never give them a return. Taking action now may not wipe the slate clean, but can minimize the financial obligation.
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