Any Lawyers/mortgage guys in the house?

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[ARCHIVED THREAD] - Any Lawyers/mortgage guys in the house?

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.

Posted: 2/9/2006 6:22:00 PM EDT

[#1]

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

Posted: 2/9/2006 6:22:04 PM EDT

[#2]

tag.

Posted: 2/9/2006 6:30:58 PM EDT

[#3]

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.

Quoted:
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.

Posted: 2/9/2006 6:34:30 PM EDT

[#4]

Quoted:
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