My understanding is that with any forgiven debt on a mortgage the seller should expect a 1099 from the lender.There is currently an effort to stop the issuance of 1099 for forgiven debt in hardship cases in congress but who knows where that will go it requires a change to the tax codes.

When its a code item, I study the county code books.

Depending on local code, and the extent of work you are doing overall, you probably have limited options.

But, here we have the city shutoff right at the meter typically down near the sidewalk/street and then a shutoff right where the water main comes into the house.In my area it is code to have the water meter in the house isolated with gate or ball valves Usually the valve before the meter has a lock out on it that only the water dept. can open or some sort of tamper seal to prevent people from by-passing their water meter.

If the property has zoning or building code issues a loan or insurance can be a problem.The commercial zoning could drive up the value if someone wants the building or even just the location.

I was a biggerpocket member before the website was updated...I am an International Real Estate Investor/property locator... specialized in finding key investment properties for buyers .I also promote properties and developements for sellers, properties that are expected to drastically increase in value within a very short time.....meaning 2 to 3 years.I would like to share some of these properties with serious investors, that can quickly indentify the investment and profit potential.I am glad to be back again....and looking forward to share information, and also learn from all you.thank you very much!

Also, please review our forum rules and pay attention to the part that talks about promoting your business.

You can make more money by focusing on RE deals than by learning the tax code.

Additionally a rule such as 1-1-6, which seems Un-American by limiting competition in business-to-business transactions, probably would have resulted in many individuals and business unknowingly violating the rule and being subject to potential fines for promoting the repair of properties and helping to stabilize homes values.I would think that many would ask “Why did the Board (DORA) promote the interest of mortgage brokers, limit competition, and slow the recovery of property values (and the economy) when many of the statutes passed to help protect tax payers and homeowners from predatory lending and restore a stability to property values?”

Make sure you visit them face to face because they screwed up my address and the zip code fell in a bad area and they flagged it for full doc.