The rules for second home ownership are a lot different as compared to your primary residence. The tax treatment is not the same, and if you get into a tight spot, the rules for foreclosures and liens are different as compared to a primary home or other property you may own.
Listed below are all such legal aspects that may be of use for second homeowners:
You may have decided to buy a second home for personal use, extra income from the rental and/or as a real estate investment. Ordinary second homeowners often make mistakes with this on their returns. A real estate expert or property lawyer can quickly sort out IRS questions about tax deductions for property tax and mortgage interest, rental income and how many days in a year the home was lived in by the owner.
The real need for legal representation arises if you fall behind on your mortgage payments or have some other debt that results in a lien being placed on the second home. Not many people realize that liens, home equity loans and other second mortgages on a home can be discharged through Chapter 13 bankruptcy. The first mortgage cannot be discharged.
Do you or does someone you know need legal information regarding second home ownership? Our real estate lawyers are here to help. Contact a real estate attorney in your area today for more information.
Did you know?
HAMP (Home Affordable Modification Program) is available for second homes.
Second home ownership does not bar you from eligibility for the federal HAMP program, which helps owners with underwater mortgages to get a loan modification with better terms and a smaller monthly payment so that they can afford to keep the home. It is also open to investors who have rented out properties.