Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
Posted: 2/9/2006 6:16:28 PM EDT
My buddie just faxed this over from his mortgage.
He is in a panic thinking this means he can't deduct his property taxes and interest on his mortgage.

Is this just some language they use or is it going to hurt him, he says he never even knew wit said that.


No claim of credit for Taxes.
Borrower will not make a deduction from or claim credit on the principal or interest secured by this security agreement by reason of any governmental taxes,assessments or charges.
Borrower will not claim any deduction from the taxable value of the property by reason of this security agreement.


Link Posted: 2/9/2006 6:22:00 PM EDT
[Last Edit: 2/9/2006 6:24:40 PM EDT by glock23carry]
NO.

They (the lender) are saying he can't reduce what he owes them nor reduce what he pays them due to tax obligations arising from the ownership/purchase of the property with the loan.

Also, how can a lender proscribe what one can or can't do on one's federal or state tax return? I don't remember "Banks" being a part of the three branches of government.

G
Link Posted: 2/9/2006 6:22:04 PM EDT
tag.
Link Posted: 2/9/2006 6:30:58 PM EDT
[Last Edit: 2/9/2006 6:32:57 PM EDT by FishKepr]

No claim of credit for Taxes.
Borrower will not make a deduction from or claim credit on the principal or interest secured by this security agreement by reason of any governmental taxes,assessments or charges.
Borrower will not claim any deduction from the taxable value of the property by reason of this security agreement.





Originally Posted By glock23carry:
NO.

They (the lender) are saying he can't reduce what he owes them nor reduce what he pays them due to tax obligations arising from the ownership/purchase of the property with the loan.

Also, how can a lender proscribe what one can or can't do on one's federal or state tax return? I don't remember "Banks" being a part of the three branches of government.

G



G23 is right. Read the clause carefully.

Christ, reading Legalese is like trying to understand 'Jive' sometimes.
Link Posted: 2/9/2006 6:34:30 PM EDT

Originally Posted By glock23carry:
NO.

They (the lender) are saying he can't reduce what he owes them nor reduce what he pays them due to tax obligations arising from the ownership/purchase of the property with the loan.

Also, how can a lender proscribe what one can or can't do on one's federal or state tax return? I don't remember "Banks" being a part of the three branches of government.

G



Ding! Ding! Ding!

I would stake my E&O coverage on this interpretation if your friend lived in Nebraksa.

No unauthorized practice of law for me,
SBG
Link Posted: 2/9/2006 6:42:15 PM EDT
Thanks guys , I directed my buddy to this thread and he will sleep good tonight.
Again, thanks to you guys.
Link Posted: 2/10/2006 2:58:33 AM EDT
Excellent question and posts.

This type of thread is why I come here. Thanks for sharing your knowledge with the rest of us...

Link Posted: 2/10/2006 8:07:48 AM EDT

Originally Posted By DAC_2141:
Excellent question and posts.

This type of thread is why I come here. Thanks for sharing your knowledge with the rest of us...




It is unbelievable sometimes the quick response we get to some tough questions.
Top Top