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William Bronchick

William Bronchick’s Answers

44 total


  • What consequences may there be if I let my ex buy me out of our house by getting a loan from his mother?

    My ex does not want to refinance, and I am willing to let him buy me out by getting a loan from his mother. My concern is what will that do for my credit if I want to buy a house for myself.

    William’s Answer

    I would try and see if your ex can refi or complete assume your responsibility for the loan with the lender, thus removing you from personal liability.

    Having the loan still in your name will affect your ability to get another loan because the existing loan shows up as a liability on your credit report. However, many lenders may not count this against you if you can show a divorce or settlement agreement by which the ex agrees to be responsible for the payment. I would visit with a mortgage broker and see what the rules are for FNMA/Freddie Mac or FHA loans in this regard before proceeding.

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  • Purchasing a Lodge and Cabin resort. We are putting in LLC. How should we classify entity?

    My husband and I are closing on a property and business with a Lodge and Cabins. We are putting in LLC. How should we classify entity? Partnership, Corporation or entity disregarded as separated from owner?

    William’s Answer

    The general rule is that ORDINARY or EARNED income should be in a corporation, and PASSIVE income should be in a partnership or disregarded format. The issue is whether the income you are earning from the lodge and cabin is ORDINARY or PASSIVE, which you may want to review with your CPA. It's possible you may have both types of income in the same business (i.e., food and services are ordinary and the rentals are passive).

    One thing you may want to consider for both liability limitation and tax benefit is to have an LLC (either as partnership or disregarded) own the property, and lease it to another LLC taxed as Corporation to run the lodge business.

    Finally two other issues you need to tackle:

    1. If you choose corporation election, whether you go "C" or "S" corp. Generally, businesses that are small start S corp and sometimes convert to C in the future when the net income is more substantial.

    2. For passive income activities, you can go either partnership or disregarded. Disregarded is slightly easier because you report the income and expenses on your personal return, as opposed to on a partnership return (form 1065) and receive a form K-1 with the net profit or less. The partnership return will cost you several hundred dollars every year to a CPA. Anecdotally, my colleagues and I have observed that reporting on a partnership return leads to a lower risk of audit than reporting on your personal return.

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  • Spouses each own 50% of s corporation. Upon divorce one spouse gives up her shares. What paperwork for taxes needs to be done

    What legal paperwork needs to be done or is only the final divorce decree needed? Does a k-1 reflect ownership prorated to date of divorce?

    William’s Answer

    Without getting into the tax or divorce issues, the paperwork is simple. You should have stock certificates from when you formed the corporation in a corporate record book somewhere. Simply turn the certificate over and there should be assignment language on the back of the certificate. Just fill that out and assign the stock. If you only formed the corp online and never did by laws, minutes, stock certificates, etc, then you're going to have to get a lawyer to re-construct all of the paperwork that should have been done in the beginning.

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  • Do i need an Real estate attorney?

    Im carrying the note on a home in colorado....the buying party has defaulted on several areas of our contract including acquiring said financing within a specified time. they continue to ignore my request...i would prefer to either reposses or re...

    William’s Answer

    You will need to hire an attorney to foreclose the property. You cannot get the property "repossessed" with going through the foreclosure process, assuming you gave title to the buyer and took back a note and deed of trust as collateral. Try offering the buyer "cash for keys", which means doing a deed in LIEU of foreclosure. Sometimes cheaper and easier. You'll likely need an attorney to draw that up as well.

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  • How can I assume our mortgage when my husband won't agree to it?

    My divorce was final 10/14. I am keeping the house in our divorce. I am on the title, but not on the loan. The mortgage company says I can assume the loan, but he has to sign documents. He is refusing. Am I able to do this with his signature, if ...

    William’s Answer

    I am not sure why you would WANT to assume the loan, be personally liable for it, and have it report on your credit? Leave it in his name, and make it his primary responsibility. You can still deduct the mortgage interest if you own the house and make the payments, even though your name is not on the mortgage loan.

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  • Do I need attorney to file specific performance action and record lis pendens?

    I have standard form Colorado residential purchase contract and seller refuses to close.

    William’s Answer

    • Selected as best answer

    The standard Colorado Real Estate Commission contract requires first that you go to mediation. So your first step is to demand mediation. If that doesn't resolve it you can sue, but you will have to file in District Court, which isn't like small claims - lots of rules that will require an attorney. As a matter of strategy, get the seller to admit in writing why he won't close (bait him in an email). That way, you can use it against him later.

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  • Landlord issues: Fraudulent invoices, illegal renting, hiding income for disability and IRS, etc.

    Basement apartment so I lived under him. No permit to rent and is not zoned for a double dwelling. He sent me two invoices from a fake LLC upon move out that never came up on the Colorado Secretary website. Address is non-existent and y...

    William’s Answer

    I don't see anything wrong the landlord did as far as YOUR rights, except possibly the security deposit. Demand it back in writing, and if he refuses, follow the procedures to get it back in small claims court. http://www.tenant.net/Other_Areas/Colorado/crs/103.html

    If his emails are over the line threatening and persistent, it may be illegal harassment, which could get him into trouble if you complain to the Police. But it sounds like he's just a nutty old man, so get your deposit back and move on. If he's not claiming the income or violating disability laws, that's not something you should bother with, because it doesn't inure to your benefit, it's only revenge.

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  • My neighbor built his fence 9" on my property. What is the best recourse to get them to move it?

    had a surveyor check the corner stakes last year to verify. discovered the Northeasterly corner stake is on other side of neighbors fence 9"

    William’s Answer

    Don't panic, Colorado law was recently changed to require a higher burden of proof for someone claiming adverse possession. The person claiming it (your neighbor) must have a good faith belief it was his property that he built the fence on. Give that notice asap in writing, certified mail, regular mail, and hand him a third copy! Include the survey in the letter as proof. That puts him on notice he's over the line and thus he would likely have no good faith basis to believe the land is his (unless, of course, he had a survey that challenged yours). Approach him nicely and ask him to move the fence. Or, if the land that he "grabbed" is not significant, offer to sell him the sliver of land for cash. However, be advised that your mortgage company may need to put their approval on this, because that sliver of land is part of their collateral for your mortgage (assuming you have one).

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  • Apartment Wants to charge us $600 carpet replacement for 1 room even though it was left in good condition.

    Lived their for 1 and half years. With two potty trained dogs. Had the carpet professionally cleaned and pet stained treated just to make sure it was spotless. This apartment building was recently taken over by new owners. The previous owners had ...

    William’s Answer

    Easiest route would be to go to small claims court and sue the landlord. Before that, I would ask the landlord to document in writing (including photos, invoices, labor, etc) the expense they incurred. This will flush out what kind of case they have before you try to sue them. You may also want to demand, in writing, that your security deposit be returned. Do it regular AND certified mail. That way, if they don't return the deposit timely (and the Judge in court rules in your favor), you may be entitled to treble (3x security deposit withheld) damages in court. The rule is a little technical, so you may want to read it: http://www.tenant.net/Other_Areas/Colorado/crs/103.html

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  • Can my sister quick deed my mothers home to her name and then sell it

    My mother has been paying her mortgage now my sister has quick claimed her home to her name and wants to sell my mothers house and put her in a nursing home

    William’s Answer

    You mean "quit claim" deed. Only the owner (your mom) can transfer ownership because she must sign the deed. It's possible your sister prepared the deed and stuck it under her nose for signature, which sounds like the case. If so, you should immediately hire an attorney to challenge the transaction. If your mother is incompetent or was lied to when (if) she signed the deed, you need to take action NOW before your Mom is gone and there's no proof. If your mom voluntarily signed the deed and gave it to your sister, you may be out of luck. At the very least, you should hire an attorney and pursue the issue.

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