Topics
7 Contract Terms You Must Know When Buying a Home
Beware of Boilerplate in Business Contracts
Buying or Selling a Business
Commercial Lease Issues
Foreclosure or Short Sale: Reduced Tax Assessment not Guaranteed
Foreclosures
Joint Ownership of Real Estate
Mortgage Forgiveness Debt Relief Act of 2007
Mortgage Modification Agreements
Short Sales
Smart Business Strategies for Tough Economic Times
The Housing and Economic Recovery Act of 2008
Recent Updates
January 31, 2010
Commercial Tenants Beware of Signage Restrictions
January 24, 2010
There is nothing short about a short sale ? but help may be on the way
January 24, 2010
Florida Supreme Court Adopts Mediation Program for Residential Foreclosures
January 07, 2009
Documentary Stamps Tax: The Hidden Cost of a Deed in Lieu of Foreclosure
January 07, 2009
Battling the Recession - Strategy for the Small to Mid Size Business
Documentary Stamps Tax: The Hidden Cost of a Deed in Lieu of Foreclosure
Posted by: Marlyn Wiener
January 07, 2009
Topic: Foreclosures
Most Florida property owners are not aware that documentary stamps tax is due and payable in connection with the recording of a deed in lieu of foreclosure. This means that the owner will be required to pay documentary stamps tax at the rate of $.70 per $100.00 on the amount of the outstanding balance of the mortgage that the property is subject to. For example, if the mortgage debt is $350,000, doc stamps tax of $2,450 plus recording charges and the lender's transaction and attorney's fees and costs will be due and payable at the transfer of the deed in lieu of foreclosure. It is easy to see how this can become a very expensive transaction (and perhaps unrealistic strategy) for a property owner who is probably contemplating a deed in lieu of foreclosure because he or she does not have the income or financial resources to pay the mortgage.
