We’ve all been there: The lease on your current place is about to end and you have to decide whether to agree to another lease or try to find a new place to live. Occasionally, a landlord will ask to know your intentions before the lease term is over, and taking too long to decide could cost you money.

However, this may not be enforceable. In general, fines and penalties are the business of government, not private contracts. However, there may have been a clause in the lease that you signed saying that you agreed to pay a set amount if you did not provide enough notice to the landlord as to your intentions.

This is a situation where it is very helpful to have an attorney go over your specific lease and review the language contained therein. Since there is no state law about providing adequate notice of rental intentions, it will come down to the language contained in the contract you signed. And even if you did sign a lease with such a clause, the wording still matters. If it is described as a “fine,” then it may be unenforceable, since that would be an “unconscionable lease provision” according to Florida statute.

Typically a landlord can do nearly anything they want as long as the tenant agreed to it in the lease, but leveeing a fine or penalty for inadequate notice is not allowed. Again, be sure to consult with an experienced attorney to review your specific situation and lease terms.

Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096. The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

Though filing a Chapter 7 bankruptcy can improve an individual’s creditworthiness and even allow them to outright keep ownership of certain exempt property, it is not often a cure for upside down debt on a home. Generally, borrowers must endure a minimum “seasoning” period before lenders are willing to strike a deal on a new loan. For FHA financing, that seasoning period is a minimum of two years after the date of the discharge—in addition to whatever amount of time is required by the new lender, before the borrower can successfully apply for a new home loan. That means that your best bet at qualifying for an FHA loan after a discharge is to resolve the debt on your previous property.

Though a chapter 7 is designed to help insolvent borrowers reestablish creditworthiness and get their financial health back on track, it does not automatically get them off the hook. That’s because, while personal liability for the debt on your mortgage was discharged in the bankruptcy, the mortgage lien on the property remains very much alive. Because your name is on the title to the property, new lenders are unlikely to extend a hand before the lien on the property is resolved.

A chapter 7 filing will not simply erase your debt; if you’ve been discharged a mortgage in bankruptcy proceedings, being proactive and eliminating your role with the property lien is imperative. Additionally, credit reporting mistakes are very common after a bankruptcy, which makes attaining a good credit rating and qualifying for a new loan all the more difficult. The most effective way to rid yourself of the upside down property and save your credit is to pursue a short sale and move on. Be proactive and review your credit report for discrepancies and discuss your options with your bankruptcy attorney.

Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096. The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

Updated: 6/2/23

In the state of Florida, there are no rent control provisions. This means that landlords have the freedom to charge any amount they deem suitable for rent. The only limitation on how much they can charge is the availability of tenants willing to pay that price. This concept is often referred to by economists as charging “whatever the market can bear.”

The Role of Lease Agreements in Rent Increases

If you have a written lease agreement, this document might stipulate specific time frames for notices to be given. For instance, it could state that the landlord must provide a certain amount of notice for any changes to the lease agreement prior to renewal. Similarly, as a tenant, you may be required to give a certain amount of notice if you do not intend to continue leasing the property.

Typical Notice Period for Rent Increases

While Florida law does not mandate a specific notice period for rent increases, it’s common practice for landlords to provide around 30 days’ notice. This gives tenants ample time to adjust their budgets or consider other housing options if the new rent is unaffordable.

However, the notice period can vary depending on the terms of your lease agreement. Some leases may require a longer notice period, such as 60 or 90 days. It’s crucial to read your lease carefully to understand the terms regarding rent increases.

It’s also worth noting that if your lease specifies a certain rent amount for a fixed term, such as one year, your landlord cannot increase the rent until the lease term is up, unless the lease itself provides for an increase.

If you’re on a month-to-month lease, the landlord can generally increase the rent as often as they like, but they must provide you with proper notice (typically 30 days). If you receive a notice of rent increase that you believe is unfair or that doesn’t comply with the terms of your lease, it’s advisable to consult with a legal professional.

Remember, a rent increase notice should be in writing, clearly state the new rent amount, and specify when the increase will take effect. If your landlord has not followed these guidelines, you may have grounds to dispute the increase.

Legal Support for Rental Issues

Given the complexities of rental agreements and the potential for disputes, it’s always recommended to have an experienced attorney review your specific documents and situation to determine your best course of action. If you are experiencing difficulties with your rental situation, don’t hesitate to seek legal help. An attorney can fight for your rights and ensure that your best interests are taken into account.

Maintaining a Healthy Landlord-Tenant Relationship

While understanding the legalities of rent increases is important, maintaining a healthy relationship with your landlord is equally crucial. Ideally, the relationship between a landlord and tenant should be open, honest, and communicative. By keeping lines of communication open and addressing issues promptly and respectfully, you can prevent many rental disputes from escalating.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

Due to our current caseload, our office simply does not the have the resources
needed to dedicate to any additional tenant legal matters.
Any tenant-specific legal matters should be referred to the following organization:
Lawyer Referral Service Online (available 24/7) — https://www.floridabar.org/public/lrs/
or Phone (800) 342-8011 Monday through Friday 8:00 a.m. to 5:30 p.m.

Even if you’ve filed bankruptcy and moved out of your home, your name remains on the property title. Moreover, mortgage liens are generally not discharged in a chapter 13 bankruptcy. Unfortunately, you will remain the owner of record until your lender forecloses or you take the necessary steps to remove yourself from the title. A deed in lieu or a short sale is your best bet at eliminating your name from the title and avoiding significant damage to your credit in a bank foreclosure.

A deed in lieu allows you to convey all interest in the property back to your lender, satisfying the loan and allowing you to circumvent the catastrophic effects foreclosure proceedings can have on your credit report. In a short sale, the proceeds from the sale fall short of the balance owed. Like a deed in lieu, a short sale can help you avoid foreclosure and release you from the property lien. Neither option involves an additional expense and will give you an opportunity to regain some control over what happens next.

Though filing for bankruptcy will delay the foreclosure process, the bankruptcy proceedings do not pay off the mortgage nor does it offer protection from foreclosure. But while things may seem grim, the good news is your home hasn’t foreclosed yet. This gives you an opportunity to proactively seek approval from the trustee, pursue a short sale or deed in lieu and rid yourself of the property for good. Lenders are often willing to work with underwater borrowers looking for alternatives; consult with an experienced foreclosure attorney and explore your options.

Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 813-549-0096. The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

A lender files a 1099-C with the IRS when they release the debtor from liability or otherwise waive a borrower’s deficiency judgment. If you received a 1099-C from your mortgage company, then you should not owe a deficiency judgment on the corresponding debt. But when it comes to Florida foreclosures, things can get a bit convoluted as foreclosure actions are typically filed by the truckload, in a factory-like settings; an environment in which unfortunate blunders are easily made.

A 1099-C is most often seen in short sales or a deed in lieu of foreclosure—both are instances in which the lender typically cancels the balance remaining on the debt. In a short sale, for example, your lender agrees to settle the debt on the property for less than what they’re owed. However, debt relief (with few exceptions) is considered taxable income and must be reported to the IRS. Come tax season, your lender is allowed to write off your settlement as a loss, so once the short sale transaction is complete, your lender will send you a 1099-C affirming the amount written-off in the settlement. You would then report that amount as income when filing your tax return for the tax year in which that debt was settled. That should, for all intents and purposes, be the end of it.

In essence the 1099-C you received from your lender is an agreement which states your mortgage company will not pursue the remaining balance on your debt. If you have documentation stating your deficiency was waived, then you have a solid defense against collection efforts. It is very plausible that your lender simply made a mistake. Nevertheless it is important to take action and contact an experienced foreclosure attorney immediately in order to guarantee your interests are being protected.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

Going through the foreclosure process is an extremely stressful situation. Nevertheless, banks have a reputation of dragging the process out. How long is an “unreasonable” amount of time, according to the state of Florida? Unfortunately, a common belief is that many Florida courts are unkind to borrowers; courts are not out to help you in this situation. However, there are laws and procedures specifically designed to protect our civil rights, and knowing those laws will help in these kinds of situations.

Under Florida Rule of Civil Procedure 1.420 (e), if it’s been 10 months or more without any filings in a case, then the defendant can file a Notice of Intent to Dismiss. If there is nothing filed within 60 days of that, the defendant can file a Motion to Dismiss for lack of prosecution. At this point, it won’t be easy for the prosecution to overturn the motions. They must show “good cause” why the case should remain pending, and that isn’t easy to provide. If the case has come this far, it’s reasonable to believe that the plaintiff has either forgotten about the case or simply doesn’t consider it wise to continue spending money on the case.

The defendant should know how to protect themselves in this circumstance. As previously mentioned, there are civil rights for a reason. Nobody has the right to take civil rights away, and, as always, an attorney is certainly the best option in this case. In certain circumstances, attorneys can find out if the judgment can be retracted. Additionally, an attorney will likely be able to represent the needs of the defendant  much more clearly than the defendant themselves.

This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.

“Do I still owe HOA fees after my foreclosure sale?” It seems like owing fees after ownership has been transferred would be grossly unethical, if not illegal, but is this the case? The short answer is “yes”. However, this answer deserves a more detailed explanation.

HOA Fees and Foreclosure

Even after a foreclosure sale, the original homeowner may still be liable for unpaid HOA fees. This is because the obligation to pay these fees is tied to the property itself, not the individual homeowner. Therefore, any unpaid fees can become a lien on the property, which must be satisfied before the property can be sold.

Responsibility of the Lender and Third-Party Buyers

When a property is bought in a foreclosure sale, the responsibility for HOA fees can shift. If the property is bought by the lender, their responsibility is limited to 12 months of assessments or 1% of the original loan amount, whichever is less. However, if the property is purchased by a third party, that party becomes responsible for the full amount of the unpaid HOA fees. Furthermore, the third-party purchaser can seek reimbursement from the original homeowner for these fees.

Long-Term Implications of Unpaid HOA Fees

Unpaid HOA fees can have long-term implications for homeowners. In Florida, banks have up to 20 years to process a foreclosure finding. During this time, the original homeowner may still be responsible for HOA fees. This can add a significant financial burden to homeowners who are already dealing with the fallout from a foreclosure. Therefore, it’s crucial for homeowners to understand their obligations and to seek legal advice if they’re facing potential foreclosure.

Seeking Legal Advice

Dealing with HOA fees and foreclosure can be complex, and it’s crucial to seek professional advice. If you’re facing a situation involving potential foreclosure or unpaid HOA fees, consult with a real estate attorney or a bankruptcy attorney. They can help you understand your obligations and guide you through the process. Remember, every situation is unique, and what applies to one homeowner may not apply to another. Therefore, personalized advice is essential when navigating these complex issues.

The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.

 

Stephen K. Hachey P.A. Stephen K. Hachey P.A.
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Speak With a Real Estate Attorney Now
Call Now! (813) 549-0096

Updated: 6/3/23

Understanding Phantom Income

Phantom income, in the context of real estate, refers to income that is deemed to have been received but has not resulted in any actual cash inflow. This often arises in situations involving debt forgiveness. For instance, if a homeowner owes $200,000 on a mortgage, but the lender forgives $50,000 of the debt, that $50,000 could be considered phantom income. While the homeowner hasn’t physically received this money, they’ve benefited from the debt reduction, and this can be seen as a form of income.

The Homestead Exemption

The Homestead exemption is a legal provision that allows homeowners to protect their principal residence from creditors or property taxes. In Florida, the Homestead exemption can protect an unlimited amount of value in a home, as long as the property is not larger than half an acre in a municipality or 160 acres elsewhere. This exemption plays a crucial role in safeguarding homeowners from the financial implications of debt and can provide a significant buffer against the potential impact of phantom income.

Phantom Income and the Homestead Exemption

When it comes to phantom income and the Homestead exemption, the relationship is complex. On one hand, the Homestead exemption can protect homeowners from creditors, potentially reducing the likelihood of debt forgiveness and the resulting phantom income. On the other hand, if debt forgiveness does occur, the phantom income could potentially be taxable, depending on the specifics of the situation. It’s important to note that the Homestead exemption does not automatically exempt homeowners from taxes on phantom income.

The Mortgage Forgiveness and Debt Relief Act

The Mortgage Forgiveness and Debt Relief Act plays a significant role in the taxation of phantom income. According to this Act, forgiven mortgage debt is not considered taxable income under certain circumstances. Specifically, the Act provides tax relief for homeowners who have mortgage debt forgiven as a result of foreclosure, loan modification, or short sale. However, this relief is not unlimited, and there are specific criteria that must be met to qualify.

Navigating Phantom Income Taxation

Dealing with phantom income taxation can be complex, and it’s crucial to seek professional advice. If you’re facing a situation involving potential phantom income, consult with a tax professional or a real estate attorney. They can help you understand the potential tax implications and guide you through the process. Remember, every situation is unique, and what applies to one homeowner may not apply to another. Therefore, personalized advice is essential when navigating phantom income taxation.

 

Stephen K. Hachey P.A. Stephen K. Hachey P.A.
Have Questions?
Speak With a Real Estate Attorney Now
Call Now! (813) 549-0096