Debt Settlement:

Before discussing their debt with an attorney, many people decide to tackle the debt themselves by negotiating with their creditors to accept lower payments, negotiating with creditors to accept a lower overall amount to payoff the debt or by hiring a debt settlement company to do the negotiating for them. There are a few things to consider when using a debt settlement company to ensure the process goes as expected.

1. The Order Your Debts Are Paid:

The first thing to consider is how the debt settlement company allocates your payments. Some companies will take your payments and allocate them equally to all of the creditors that you have negotiated settlements with. Other companies may take your payments and allocate them to your smallest or oldest debts first. The latter option is not recommended and can have negative consequences, as some of your creditors may be left in the dark and not receive a single cent for some time. This often leads to those in-the-dark creditors pursuing their legal rights against you, which could result in a garnishment of your wages or a judgment against you.

2. Research, Research, Research:

The second thing to consider is whether the debt settlement company you are considering using is following the law. Debt settlement companies who do business with consumers in Wisconsin must be licensed as an “adjustment service company.”[1] These companies are prohibited from collecting up-front fees from you and must follow specific disclosure requirements as to what their services and fees include. It is highly recommended that consumers considering using a debt settlement company do thorough research to avoid possible unintended consequences, such as digging yourself into deeper debt through interest and fees or even worse, falling victim to fraudulent debt consolidation company.

3. Credit and Tax Consequences:

While some debt settlement companies may claim that their assistance will not hurt your credit, that is generally not the case. Because you are agreeing to pay your creditors in an amount less than what is actually owed, your creditors will report this to your credit bureaus, and it will show up on your credit report. Additionally, cancelled debt is reported to the IRS and considered as income, which may then affect your income taxes.

Chapter 128:

Wisconsin Statues, Chapter 128, offers a voluntary debt repayment plan, often colloquially referred to as “Chapter 128”. Similar to debt settlement, you may pick and choose which debts to include in your debt repayment plan, however, with chapter 128, you may not negotiate your debts down to a lower, overall settlement amount. Rather, when you file your petition with a Wisconsin court, the debt owed at the time of filing is then amortized over 3 years into equal monthly payments.

The huge benefit to Chapter 128 is that it stops interest from accruing on the accounts that you include in the plan and that the creditors who are included in your plan are then prohibited from attempting to collect that debt. Therefore, the debt collector phone calls stop as do the fears of garnishment of your wages.

Chapter 128 is not for everyone. It is used for unsecured debt, such as credit card bills or medical bills, and cannot be used for secured debt, such as your mortgage or car loan. You must earn a consistent income to file and certify that you are financially able to make your monthly payment. It is highly recommended that you meet with an attorney to discuss the process and assist with calculating your debt payment to ensure it fits within your financial means, to avoid the pitfalls that come with failing to make all of your chapter 128 payments.

Chapter 7 Bankruptcy:

While debt settlement and Chapter 128 involve paying your debts back, Chapter 7 bankruptcy is often deemed a “fresh start” as it wipes your debts out, without having to pay them back. That statement may make Chapter 7 seem like the best option, however, not everyone qualifies for Chapter 7 bankruptcy. To file for Chapter 7 bankruptcy, your income must fall under certain limits based on your household size.

Even if you qualify for Chapter 7 bankruptcy, it may not be your only or best option. A Chapter 7 bankruptcy stays on your credit report for 10 years which may make it an unappealing option to those employed in certain financial professions or those who are trying to apply for credit or purchase a home in the very near future. The process of filing for Chapter 7 bankruptcy also involves a thorough analysis of your assets to determine whether they are exempt from being taken by the bankruptcy trustee and sold to satisfy your debts. If certain assets, like your home, are not exempt, you may want to look into either Chapter 128, debt settlement, or a Chapter 13 bankruptcy.

Schedule a consultation with Wynn at Law, LLC today to discuss your debt relief options

If you are already enrolled in a debt settlement program and curious as to what legal options you may have or if you are just starting to tackle your debt, our attorneys are here to assist you. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

[1] DFI Dealing With Debt Problems (Continued)

The post Which is right for you – Chapter 7 Bankruptcy, Debt Settlement, or Chapter 128? appeared first on Wynn at Law, LLC.

If you are in the process of purchasing a new home, or have just purchased one, you may have encountered offers for a home warranty – but what exactly is a home warranty? Home warranties provide discounted repair and/or replacement services for components within your home, such as your heating, air conditioning, electrical, appliances, and sometimes even pool or garage door components. Home warranties are intended for items such as a broken water heater or an appliance repair. Essentially, a home warranty can cover things that your homeowner’s insurance would not (more on what homeowner’s insurance covers below). However, homeowners should clearly read their home warranty to understand what is covered, as many warranties do not provide coverage for repairs or replacements that can be attributed to a lack of maintenance. Rather, home warranties are often meant to cover unexpected repairs.

Do I need a home warranty?

The decision on whether to have or forego a home warranty is completely optional and situational. It is not a legal nor lender requirement that a home owner have a home warranty. When contemplating whether or not you should purchase a home warranty, here are some things to take into consideration.

First, do you have an emergency fund in place sufficient to cover unexpected home repairs? Consider what would happen if you needed to purchase a new refrigerator within the first year of owning your home, or even worse, an expensive air conditioning replacement – if this is something that you could not afford as an out-of-pocket expense, then it may be worth considering whether a home warranty could assist with the cost of an expensive and unexpected repair or replacement. Home warranties on average range from $300-$1,200 per year depending on the plan and components of the house.

Second, consider how old your home’s components are and what condition they are in. If you had a home inspection done, your home inspector will likely have gauged the remaining life of some of your components, so it may be worth taking a look at your inspection report. However, even brand new home components can unexpectedly go out – consider whether any of those components come with warranties of their own.

Third, what condition is your home in? If there are components that were already not functioning when you purchased the home, a home warranty will not assist with their repair or replacement. Review different home warranty plans and their exclusions to understand what would and would not be covered. For example, many home warranty plans contain exclusions for improper installation, mold, code violations, and structural home components (such as foundation cracks, roof repairs, etc.). If many of the repairs you need would not be covered, then you may able to work with the seller to negotiate the repairs or a credit to do the repairs yourself, assuming you have not already closed on the home.

How is a Home Warranty Different From Homeowner’s Insurance?

Home warranties are intended to cover the components of your home, such as plumbing, HVAC, and electrical. Homeowners insurance, on the other hand, covers damage to the actual structure of the home itself due to events outside the control of the owner, in most cases, such as a damaged roof due to a tree falling, fire or damage resulting from a natural disaster. If you have lending on your home, your lender will require you to have homeowner’s insurance, whereas the lender will not require you to have a home warranty. As always, it is best practice to thoroughly read any homeowners insurance policy or home warranty plan to understand what is and is not covered.

Schedule a consultation with Wynn at Law, LLC today to discuss the home buying process

Also see our related blog post, Five Things I Wish I Knew as a First Time Home Buyer. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post Home Owner Education: Home Warranties vs. Home Insurance appeared first on Wynn at Law, LLC.

This achievement reflects a consistent level of excellence recognized by peers, colleagues, and the Super Lawyers independent research team. The annual selection process evaluates attorneys across several criteria, including professional accomplishments, peer feedback, and overall standing in the legal community. Earning this honor once is notable—earning it five years in a row is a testament to Attorney Wynn’s ongoing dedication to her clients and her craft.

Attorney Wynn has built her reputation on providing clear guidance, compassionate support, and effective legal solutions in matters that deeply affect individuals and families. Her commitment to thorough communication and personalized service has made her a trusted resource throughout the region.

The firm celebrates this milestone as a reflection of the values at the heart of its practice: integrity, excellence, and unwavering client focus.

Wynn at Law, LLC looks forward to continuing to serve the community with the same high standards that earned this distinguished recognition year after year.

The post Wisconsin Attorney Shannon Wynn Named Super Lawyer for Fifth Year in a Row appeared first on Wynn at Law, LLC.

1. Naming Minors as a Direct Beneficiary of a Financial Account

Naming a minor child as a direct Payable On Death (POD) beneficiary of a financial account or as an insurance beneficiary could result in the money either going directly to the child’s guardian, or to the child the minute , he or she turns 18. Many 18-year-olds who come into large sums of money spend it in ways that may not be in their best interest or a child’s guardian may not be the person you want controlling the money either (i.e. divorced spouses). Parents or grandparents of minors should consider other estate planning tools, such as a trust, to avoid this situation.

2. Adding a Child as a Joint User to a Bank Account

Aging parents often find it advantageous to add one of their grown children to their bank accounts as a co-owner/ joint user so that their child can handle their finances. When the aging parent passes, the child on the bank account now owns those funds 100%. Parents with multiple children may not have anticipated this or assumed that the child would voluntarily share the funds with their siblings. In most cases, the child on the bank account does not share the funds with their siblings, and legally, they have no obligation to do so. Even if that child were to share the funds, unintended gift tax consequences can arise. Aging parents in this situation should consider using a Financial Power of Attorney to allow a child to manage their finances during their lifetime.

3. Improper Spousal Ownership of Real Estate

What happens in Wisconsin to real estate when one spouse passes? Does the surviving spouse automatically own the real estate? The answer lies in the way the spouses took ownership on the deed and the type of real estate owned. Simply having both spouses listed on the deed as owners (such as “Jack Doe and Jane Doe”) is not enough to avoid probate in most cases. Special consideration must be taken when titling real estate to ensure that a probate is not required between the spouses when one spouse passes. Having an attorney review your deed and fix any unintended titling mistakes can help prevent costly mistakes that can arise with what is often our biggest asset – the home! An attorney can also advise on options for passing down real estate when both spouses pass and common mistakes that can arise with these transfers and how to avoid them.

Schedule a consultation with Wynn at Law, LLC today to discuss the estate planning process

Whether you already have an estate plan in place and need to review it, or you would like to start from scratch, our attorneys are here to assist you. Contact Wynn at Law, LLC today for a consultation at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

The post Top Three Estate Planning Mistakes appeared first on Wynn at Law, LLC.

No. Buyers can only conduct an inspection if they ask for one as part of their offer to purchase. There are two ways to do this. A buyer can request an inspection under the inspection contingency, which gives the buyer certain rights if the inspection discloses defects (more on this below), or, a buyer can request an inspection for informational purposes only.

The Scope of the Inspection Contingency:

The inspection contingency in Wisconsin’s residential offer to purchase allows a buyer to use a Wisconsin licensed home inspector to inspect the home for defects. Inspectors are governed by certain standards under Wisconsin law – namely that the inspector must “perform a reasonably competent and diligent inspection to detect observable conditions” of a home.[1]

Note the statute’s reference to “observable” conditions – the statute specifically states that an inspector is not required “to disassemble any component of an improvement to residential real property” in order to inspect it.[2] For example, if a seller has moving boxes piled up against a wall, the inspector is not required to move those boxes. The inspector may make note of the obstruction in their report, however, it is best practice for the buyer to attend the inspection so that they can ask the inspector questions and take note of any areas that may need further attention. Buyers are allowed to conduct follow-up inspections within their inspection contingency time frame.

There are certain areas of a home that an inspector must observe and report the condition of, which includes: the foundation, columns, flooring systems, roof(s), plumbing, interior, exterior, and heating/ air conditioning system to name a few.[3] The Wisconsin Administrative Code specifies which aspects of these areas that an inspector is and is not required to report on. For example, an inspector observing a roof must report on the roof’s drainage systems, flashing, and signs of leakage, but is not required to physically walk on the roof or inspect any roof solar systems .[4]

A buyer can also negotiate for an inspection of an area that would typically not be inspected by a Wisconsin licensed home inspector, such as a pool’s plumbing components or a more comprehensive look at the home’s chimney. If the buyer negotiates for these further inspections, the buyer should hire a licensed contractor who specializes in inspections of the specified area and consider whether they want to make their offer contingent upon a contractor disclosing no defects of these areas.

What are Defects in a Wisconsin Home Inspection?

Before delving into what a defect is, it is important to understand why they are important. If a buyer has negotiated for an inspection contingency, then he or she may present the seller with a “Notice of Defects.” A Notice of Defects outlines a buyer’s objection to specified defects identified in the home inspection report.

If the offer has given the seller the right to cure such defects, then upon presentation of the Notice of defects, the seller can elect to cure or fix the defects, at the seller’s expense, and before closing. However, a seller who has been given the right to cure or fix the defects can also choose not to fix the defects, at which point the offer becomes null and void.

Now, onto what a defect is. . . an inspection report will specifically label something as a defect if the inspector believes the condition will either: (1) significantly impair the health or safety of the occupants of a property if the issue is not repaired, removed, or replaced, or (2) would significantly shorten or adversely affect the normal life of the component.[5] However, the offer allows a buyer to object to one other type of defect that an inspector would not categorize as a defect in their report. The residential offer to purchase defines the third type of defect as “a condition that would have a significant adverse effect on the value of the Property”.

Inspections vs. Tests – What is and is NOT Included in a Home Inspection:

A buyer should be aware that the right to conduct an inspection under the inspection contingency does NOT give the buyer the right to conduct a test. The offer defines a test as “the taking of samples of materials such as soils, water, air or building materials from the Property for laboratory or other analysis”. Common types of tests include: mold, water, asbestos, radon, and lead-based paint. If a buyer does not specifically ask for these tests, then the buyer has no right to conduct the test.

This means that if the buyer has a specific concern, such as mold for health reasons, the buyer should be sure to ask for a separate mold test and to hire a certified mold inspector to conduct the test.

Wisconsin licensed home inspectors have certain minimum conditions that they must report on. However, an inspector may report on additional findings as he or she deems appropriate.[6] For example, an inspector may make note of a mold-like substance or rodent droppings, even though the inspector is not required to take note of such items.

Conclusion

An inspection is a crucial aspect of being an informed buyer. Understanding what a standard inspection covers, what constitutes a defect, and the distinction between inspections and test empowers you as a buyer. By proactively including an inspection contingency in your offer and knowing your rights, you can approach your home purchase with greater confidence and clarity.

Schedule a consultation with Wynn at Law, LLC today to discuss the home buying process

To provide you with the utmost confidence and security, Wynn at Law, LLC can assist you with the process of buying a home and can help you navigate the inspection process, including assistance with drafting a Notice of Defects, if needed.

Contact Wynn at Law, LLC today at 262-725-0175 or visit our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin.

[1] Wis. Stat. 440.975(2) (emphasis added)

[2] Id.

[3] Wis. Admin. Code SPS 131.32

[4] Wis. Admin. Code SPS 131.32(4)

[5] Wis. Stat. 440.97(2m)

[6] Wis. Stat. 440.975(8)(a)

The post Real Estate Buyer Education: The Inspection Contingency appeared first on Wynn at Law, LLC.

This situation is quite common – property is often bought jointly, with both party’s names on the title. (See our blog “Ways to Take Title to Real Estate” for more info). For example, you and significant other, a sibling, or even a business partner may jointly hold title to real estate. But what happens when joint owners can’t agree? Situations like this may arise in the context of a deteriorated business relationship, a breakup, inherited property, or from frustrated interests – i.e. one party wants to sell and the other party does not. When co-owners cannot come to an agreement on their own, seeking a partition action from the court may be necessary.

What is a partition action?

A partition action is a court-ordered process in which the court orders either a forced sale of the property (partition by sale) or divides the property into separate parcels, giving each party an equal interest (partition in kind). Partitions in kind are not always possible, such as when a non-marital couple jointly own a house on a single parcel – the house cannot be divided equally, thus the court would be more inclined to order a partition by sale.

In a partition by sale, there will be a judicial sale of the property, resulting in each party receiving their fractional share. The fractional share is determined by the equity that each party put into the property. Thus, if one party put in $60K, and the other put in $40K, the sale proceeds would be distributed according to the party’s 60/40 interest. However, the court has broad powers in partitioning property and may consider other factors such as: who was making mortgage payments (or lack thereof), improvement payments, who is making more use of the property, who is paying the taxes, etc.

How can I file a partition action?

Before you can file a partition action, you should be aware of how you and your co-owner(s) hold title and examine any agreements, contracts, wills, or trusts concerning the property, which may place limitations on partition. For example, if the property you seek to partition was part of an inheritance by will, the will should be consulted to determine whether the decedent placed any limitations on the property – for example, the decedent may have prohibited a partition by sale with the intention of keeping the property in the family.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

The post I bought a house with my significant other; we were never married, and now we broke up. What happens to the house? appeared first on Wynn at Law, LLC.

Land contracts are written agreements between a buyer and seller of real estate in which the seller provides financing to the buyer on agreed upon terms. The property under the contract can range anywhere from vacant land to an apartment building. Once the parties have executed their agreement and the buyer has made a down payment (if required) to the seller, the buyer can then obtain possession of the property immediately.

Why use a land contract?

For those experiencing trouble obtaining a traditional bank loan due to low credit or a recent bankruptcy filing, land contracts can provide a way for buyers to bypass the bank and instead work directly with the seller to finance the property. A Seller may also benefit from a land contract if the property being sold does not qualify for traditional lending. Land Contracts may also be an attractive option for selling between family members – particularly for adult children seeking to buy their parent’s home. Parties are often able to work out more favorable financing terms than what the bank can offer, making land contracts great options for first-time buyers in a less than favorable market.

How do land contracts work?

Like a mortgage, a buyer is still going to make a down payment on the property followed by installment payments, but these payments go directly into the seller’s pocket. The contract itself will work out payment frequency, but typically payments are made monthly with one final balloon payment at the end. The balloon payment is the balance of the loan owed to the Seller.  The idea is that by the time the buyer reaches the final balloon payment and may need a loan to make that payment, enough time has passed to let the buyer’s credit heal thus allowing him or her to get a traditional bank loan. In some cases, the parties will agree to pay the total sum of the purchase price in monthly payments and no balloon payment will be required.

Land contracts are also sometimes referred to as “contracts for deed” because that is essentially the buyer’s goal – once all of the land contract’s terms are fulfilled, the seller will transfer ownership to the buyer via deed.

What happens if the buyer defaults on payments?

Because land contracts are legally binding contracts, a seller has a few options when a buyer fails to make timely payments:

• The seller could file suit for breach of contract seeking reimbursement through money judgement, garnishment, or other means,
• The seller could file suit seeking termination of the land contract (most appropriate when the buyer has simply disappeared), or
• The seller could seek foreclosure, giving the buyer a final opportunity to pay, and either having the property revert to the seller or have it sold if the buyer foregoes this final opportunity.

These options may vary depending on the land contract’s terms and the state where the property is located which is why a seller in a land contract should be vigilant in drafting the contract so as to include desired remedies in the event of a buyer’s default.

Is a lease-to-own agreement different than a land contract?

Lease-to-own agreements operate much differently than land contracts, as these agreements typically give a tenant the option to purchase the property at the end of the lease term for an agreed-upon price or agreed-upon future value. Whereas the payments made during a land contract are subtracted from principal and interest, payments that a tenant makes during a lease-to-own agreement may not necessarily count towards the price that the tenant ultimately pays to exercise their option to purchase, unless a rent premium provision is added. However, even with a rent premium provision, these agreements rarely allow the entire rent payment to be credited towards the purchase price.

Lease to own agreements often also charge tenants an option fee – this is an additional charge a tenant pays upfront to preserve their right to purchase at the end of the lease term. A tenant who ultimately decides not to exercise their option to purchase generally loses the additional rent premiums and option fee, as these are most often non-refundable.

There is a significant difference between title rights in land contracts and lease-to-own agreements. Buyers in land contracts hold equitable title to the property. This means that as long as the buyer is making the agreed-upon payments, the buyer has the absolute right to occupy the property and continue towards their right to purchase that property. While the seller in a land contract is still the holder of legal title, the seller cannot try to sell the property to anyone else.

A tenant in a lease-to-own agreement does not hold equitable title. The distinction between a buyer in a land contract with equitable title and a tenant in a lease-to-own agreement who holds no equitable title, is influential on which party pays taxes, insurance, and maintenance/repair fees. For example, it is standard for a buyer in a land contract to pay the real estate taxes and property insurance, whereas in a lease-to-own agreement, it is more typical of a landlord to pay those expenses.

The pros and cons of a land contract:

As a buyer in a land contract, the pros are obvious: the opportunity to obtain financing on property without a bank. However, sellers should be cautious of who they decide to contract with. Unlike banks, individual sellers do not have the luxury of obtaining comprehensive background information from a buyer and assessing whether this is a risk worth taking.

Parties seeking to enter into a land contract should seek the assistance of an attorney for drafting and explanation of its terms and conditions. Both parties will be better off if they fully understand their obligations and liabilities that can arise when contract terms and conditions are not followed.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

The post What is a Land Contract and How does it Work? appeared first on Wynn at Law, LLC.

Credit reports are generated by three credit reporting agencies (CRAs) – Equifax, Experian, and TransUnion. Your credit report may vary depending on which agency the report comes from, as creditors can choose which bureau to report to and not all creditors report to every bureau. To pull your credit report for free from any of the CRAs, visit annualcreditreport.com.

What is Included in a Credit Report?

Contrary to popular belief, most credit reports do not contain your credit score without paying an additional fee. Rather, a credit report contains information related to your borrowing and payback history, as well as other information valuable to lenders. For example, it is typical to find the following types of information on your report:

• Past and current credit accounts/loans,
• Payment history – such as on-time, missed, or late payments (including amounts in collections)
• Foreclosures and repossessions,
• Bankruptcies,
• Past and present addresses,
• Relevant public record information such as liens, civil suits, and judgments, and
• Companies who have accessed your credit report

Why Would I Need to Access My Credit Report?

a. Applying for a loan

It is a good idea to access your credit report prior to applying for a loan or any other large credit-related purchase. This allows you to be prepared for what your lender will see and make sure that the report is accurate. It is not uncommon for a credit report to contain errors, which is why it is recommended to check your report from all three agencies at least once a year.

b. Scanning your report for errors

Any errors on your report can be disputed with the credit bureau who issued the report, the company whose information is inaccurate, or with the Consumer Financial Protection Bureau (CFPB). The CFPB recommends first disputing the error with the credit agency (Experian, Equifax, or TransUnion) by explaining the error and providing any supporting documentation. The CFPB’s website provides sample templates for filing disputes and other helpful dispute-related information, which can be accessed here. If the agency finds an error, it will report the error to the other two agencies.

What About Credit Scores – How Do I Find Mine and What Affects It?

The three credit agencies discussed above also create a credit score, which is a 3-digit number ranging from 300 to 850. Credit scores can also be accessed by most credit card companies/lenders. However, each agency’s credit reporting algorithm is different, which will result in different scores.

One well-known credit scoring agency is FICO, which generates a FICO-score. A FICO-score is the same thing as a credit score, just based on FICO’s credit reporting algorithm. The FICO scoring system is similar to most other credit scoring companies and thus a helpful guide for what factors affect your score. Under this system, there are 5 key factors[1]:

1. 35% of your score is based on your payment history:
   • Includes late payments – the later they are, the worse for your score
   • Includes accounts sent to collections
   • Includes bankruptcies, liens, foreclosures, and other public info
   • Takes into account the time the time since a missed payment and frequency of missed payments
2. 30% is based on your credit utilization:
   • Calculated by comparing your available credit to the amount you utilize – lower utilization is better for your score
3. 15% is based on the length of your credit history:
   • Old accounts can help boost your score
4. 10% is based on new credit accounts/ how many total accounts you have open:
   • Opening new accounts requires a lender to do a hard inquiry, which can temporarily lower your score
   • Opening may new accounts within a short period of time may lower your score
5. 10% is based on the types of credit you have (your credit diversity):
   • It is better for your score to have a mix of accounts – such as a mortgage loan, car loan, and credit card loan

What is the Deal With “Freezing” my Credit and When Should I do That?

A credit freeze temporarily stops lenders from accessing your credit report. People may freeze their credit if they have been the victim of fraud and are worried that the fraudster is attempting to open new accounts in their name. Freezing your credit will not lower your score and is free to do, but you must remember to un-freeze your credit (and dispute any fraud on your report) prior to opening a new account. To freeze your account, visit each of the three agencies’ websites and follow the instructions.

Conclusion

The best advice when dealing with your credit report and credit score is to be proactive – check what is on your report regularly and make sure it is accurate, dispute errors, and initiate a credit freeze when necessary. Do not be passive when it comes to your credit – investing in your financial health requires more than checking your score.

Schedule a consultation with Wynn at Law, LLC today to discuss your debt relief options and how the options affect your credit report and credit score.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

[1] How are FICO Scores Calculated? | myFICO

The post Credit Reports – How to Find Yours, What To Expect From Your Report, Freezing Your Credit, and More appeared first on Wynn at Law, LLC.

What to Know Before Using Your Property as an Airbnb, VRBO, or Other Short-Term Rental In Wisconsin:

1. Know Wisconsin State Law Governing Short-Term Rentals

In 2017, Wisconsin enacted a new short-term rental law to combat restrictions that municipalities and other local governments were placing on short-term rentals. The law defines short-term rentals as those for residential dwellings that are offered for rent for less than 30 consecutive days.[1] This law is codified as Wisconsin Statute 66.1014, and has been termed the “Right to Rent Law” as one of its main purposes is to prevent “political subdivisions” (defined as: cities, towns, villages, or counties – which will be referred to as “municipalities” in this blog) from prohibiting property owners from renting their residences for seven consecutive days or longer. Therefore, municipalities can place restrictions on rentals that are shorter than 7 days, so long as they do not conflict with State law. Municipalities may also place restrictions on rentals that are between 7 and 29 consecutive days, but these restrictions must still allow a short-term rental host to rent for at least 180 days a year. The Right to Rent law also requires anyone who rents their residence for more than 10 nights a year to purchase a touring rooming house license from the Department of Agriculture, Trade and Consumer Protection (DATCP). These licenses cost $110 per year and require a one-time inspection fee of $300.[2] The law allows municipalities to also require their own licenses, which must be purchased in addition to the DATCP license to lawfully conduct short-term rentals. The last state player in the short-term rental game is the Wisconsin Department of Revenue, which requires an owner of a short-term rental to report and pay Wisconsin state sales tax on rentals.[3] Websites like Airbnb and VRBO will collect and remit the sales tax for you.[4]^,[5]  These websites also collect other county and local taxes, if applicable. Essentially, the Right to Rent law sets the framework for what laws municipalities may enact. The law encourages municipalities to enact their own ordinances on short term rentals to limit nuisances and keep residents happy. Each municipality can choose its own registration and inspection requirements, fees, and other limitations. This is why it is extremely important to know your municipality’s short-term rental requirements.

2. Know Your County and Municipality’s Laws and Ordinances Governing Short-Term Rentals

Before going straight to renting your home, first consider whether your county has any restrictions. Walworth County has its own ordinance, which requires short-term rental owners to obtain a County License.[6] The County License has a $500 fee for the first year and a $200 annual renewal fee thereafter.[7]^,[8] Along with the County license, an owner must submit the property rules that apply to the rental, which have certain requirements of their own.[9] Keep in mind that Walworth County and the State of Wisconsin have additional requirements for short-term rentals that are serviced by a private septic system, serviced by a private well, and located on a lake. To ensure that all County requirements are met, be sure to read up on Walworth County’s Code of Ordinances and consult the County’s Land Use and Resource Management Department. Other municipal code regulations on short-term rentals that may apply include:

• Proof of property and liability insurance,
• Number of parking spaces that must be offered,
• Proof of floor plan specifications,
• Fire inspection,
• Business registration,
• Nuisance regulations,
• Quiet time hours,
• Local property manager requirements

3. Know Your Homeowner Association’s Restrictions on Short-Term Rentals

Something you may have noticed about the Right to Rent law is that the definition of “political subdivision” does not include a homeowner’s association. This means that associations can place complete restrictions on short-term rentals. The trend with associations within Walworth County seems to be placing a ban on short-term rentals altogether to stay consistent with the association’s goals and other rules. Banking on using a residence located within an association as a short-term rental is risky, as the association could vote to prohibit short-terms rentals in the future. If your residence is part of a homeowner’s association, you should make sure to read the association’s rules and bylaws. Another thing to look out for are associations that are currently inactive – the creation of a homeowner’s association should show up on the title work that is ordered when you purchase or sell a residence. An inactive association is still an association that can be brought back to life by its members, whether those members are composed of the owners of residences within a subdivision plat or a developer. If your residence is part of an association, this is the first place you should look to in determining whether a short-term rental is allowed.

4. Consider the Advantages and Disadvantages of Short-Term Renting

If you are considering using your property as a short-term rental, not only should you make sure that you are abiding by state law, local law, and any homeowner’s association restrictions, but you should also consider the advantages and disadvantages of short-term renting. Financially, short-term renting can not only brings in more income than a long-term rental, but also may allow rental owners to claim tax deduction benefits for things such as property maintenance, insurance, and utilities. Additionally, as a short-term renter, you can be flexible and choose to rent as much or as little as possible. While the financial freedom and flexibility that comes with short-term renting is quite enticing to those looking to begin their short-term rental journey, you should also be aware of some disadvantages. Unfortunately, short-term rentals can drive up housing prices. Also, as this blog has shown, the laws regarding short-term rentals can vary between municipalities, which means that if you have multiple rentals in different locations, you will have to keep track of each municipality’s rules to avoid potential expensive fees. A third downfall is the noise and nuisances that rental properties may create – noise violations, theft, and property damage to name a few. Lastly, be sure to check your homeowner’s insurance policy as some insurance carriers will not cover any damage that occurs at a property when the home is being used as a short term rental.

Conclusion

Wynn at Law, LLC assists clients who are looking to purchase property to be used as a short-term rental, clients selling short term rentals and clients who are purchasing property already used as one. Attorney Shannon Wynn or Attorney Ciara Doherty can help navigate buyers as to where to look to ensure a short-term rental is allowed, can review and explain title work that may have restrictions on short-term renting, and can help buyers feel empowered and informed throughout the entire process.

Schedule a consultation with Wynn at Law, LLC today to discuss the purchase or sale of short-term rented real estate.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

SOURCES: [1] Wis. Stat. 66.0615(dk)

[2] DATCP Home Tourist Rooming Houses (wi.gov)

[3] DOR Homeowners and Individuals Selling Short-Term Lodging (wi.gov)

[4] Collection and remittance of taxes and lodging taxes | Help (vrbo.com)

[5] Occupancy tax collection and remittance by Airbnb in Wisconsin – Airbnb Help Center

[6] Walworth County, Wisconsin Code of Ordinances. Chapter 26, Art. VII. ARTICLE VII. – OFFERING A RESIDENTIAL DWELLING AS A SHORT TERM RENTAL | Code of Ordinances | Walworth County, WI | Municode Library

[7] Wisconsin Division (walworth.wi.us)

[8] Wisconsin Division (walworth.wi.us)

[9] See Walworth County Code of Ordinances, Chapter 26, Art VII, Sec. 26-343.

What to Know Before Using Your Property as an Airbnb, VRBO, or Other Short-Term Rental In Wisconsin:

1. Know Wisconsin State Law Governing Short-Term Rentals

In 2017, Wisconsin enacted a new short-term rental law to combat restrictions that municipalities and other local governments were placing on short-term rentals. The law defines short-term rentals as those for residential dwellings that are offered for rent for less than 30 consecutive days.[1] This law is codified as Wisconsin Statute 66.1014, and has been termed the “Right to Rent Law” as one of its main purposes is to prevent “political subdivisions” (defined as: cities, towns, villages, or counties – which will be referred to as “municipalities” in this blog) from prohibiting property owners from renting their residences for seven consecutive days or longer. Therefore, municipalities can place restrictions on rentals that are shorter than 7 days, so long as they do not conflict with State law. Municipalities may also place restrictions on rentals that are between 7 and 29 consecutive days, but these restrictions must still allow a short-term rental host to rent for at least 180 days a year. The Right to Rent law also requires anyone who rents their residence for more than 10 nights a year to purchase a touring rooming house license from the Department of Agriculture, Trade and Consumer Protection (DATCP). These licenses cost $110 per year and require a one-time inspection fee of $300.[2] The law allows municipalities to also require their own licenses, which must be purchased in addition to the DATCP license to lawfully conduct short-term rentals. The last state player in the short-term rental game is the Wisconsin Department of Revenue, which requires an owner of a short-term rental to report and pay Wisconsin state sales tax on rentals.[3] Websites like Airbnb and VRBO will collect and remit the sales tax for you.[4]^,[5]  These websites also collect other county and local taxes, if applicable. Essentially, the Right to Rent law sets the framework for what laws municipalities may enact. The law encourages municipalities to enact their own ordinances on short term rentals to limit nuisances and keep residents happy. Each municipality can choose its own registration and inspection requirements, fees, and other limitations. This is why it is extremely important to know your municipality’s short-term rental requirements.

2. Know Your County and Municipality’s Laws and Ordinances Governing Short-Term Rentals

Before going straight to renting your home, first consider whether your county has any restrictions. Walworth County has its own ordinance, which requires short-term rental owners to obtain a County License.[6] The County License has a $500 fee for the first year and a $200 annual renewal fee thereafter.[7]^,[8] Along with the County license, an owner must submit the property rules that apply to the rental, which have certain requirements of their own.[9] Keep in mind that Walworth County and the State of Wisconsin have additional requirements for short-term rentals that are serviced by a private septic system, serviced by a private well, and located on a lake. To ensure that all County requirements are met, be sure to read up on Walworth County’s Code of Ordinances and consult the County’s Land Use and Resource Management Department. Other municipal code regulations on short-term rentals that may apply include:

• Proof of property and liability insurance,
• Number of parking spaces that must be offered,
• Proof of floor plan specifications,
• Fire inspection,
• Business registration,
• Nuisance regulations,
• Quiet time hours,
• Local property manager requirements

3. Know Your Homeowner Association’s Restrictions on Short-Term Rentals

Something you may have noticed about the Right to Rent law is that the definition of “political subdivision” does not include a homeowner’s association. This means that associations can place complete restrictions on short-term rentals. The trend with associations within Walworth County seems to be placing a ban on short-term rentals altogether to stay consistent with the association’s goals and other rules. Banking on using a residence located within an association as a short-term rental is risky, as the association could vote to prohibit short-terms rentals in the future. If your residence is part of a homeowner’s association, you should make sure to read the association’s rules and bylaws. Another thing to look out for are associations that are currently inactive – the creation of a homeowner’s association should show up on the title work that is ordered when you purchase or sell a residence. An inactive association is still an association that can be brought back to life by its members, whether those members are composed of the owners of residences within a subdivision plat or a developer. If your residence is part of an association, this is the first place you should look to in determining whether a short-term rental is allowed.

4. Consider the Advantages and Disadvantages of Short-Term Renting

If you are considering using your property as a short-term rental, not only should you make sure that you are abiding by state law, local law, and any homeowner’s association restrictions, but you should also consider the advantages and disadvantages of short-term renting. Financially, short-term renting can not only brings in more income than a long-term rental, but also may allow rental owners to claim tax deduction benefits for things such as property maintenance, insurance, and utilities. Additionally, as a short-term renter, you can be flexible and choose to rent as much or as little as possible. While the financial freedom and flexibility that comes with short-term renting is quite enticing to those looking to begin their short-term rental journey, you should also be aware of some disadvantages. Unfortunately, short-term rentals can drive up housing prices. Also, as this blog has shown, the laws regarding short-term rentals can vary between municipalities, which means that if you have multiple rentals in different locations, you will have to keep track of each municipality’s rules to avoid potential expensive fees. A third downfall is the noise and nuisances that rental properties may create – noise violations, theft, and property damage to name a few. Lastly, be sure to check your homeowner’s insurance policy as some insurance carriers will not cover any damage that occurs at a property when the home is being used as a short term rental.

Conclusion

Wynn at Law, LLC assists clients who are looking to purchase property to be used as a short-term rental, clients selling short term rentals and clients who are purchasing property already used as one. Attorney Shannon Wynn or Attorney Ciara Doherty can help navigate buyers as to where to look to ensure a short-term rental is allowed, can review and explain title work that may have restrictions on short-term renting, and can help buyers feel empowered and informed throughout the entire process.

Schedule a consultation with Wynn at Law, LLC today to discuss the purchase or sale of short-term rented real estate.

Contact us today for a consultation at 262-725-0175 or our website’s contact page. Wynn at Law, LLC is based in Southern Wisconsin and has three office locations: Lake Geneva, Delavan, and Salem.

SOURCES: [1] Wis. Stat. 66.0615(dk)

[2] DATCP Home Tourist Rooming Houses (wi.gov)

[3] DOR Homeowners and Individuals Selling Short-Term Lodging (wi.gov)

[4] Collection and remittance of taxes and lodging taxes | Help (vrbo.com)

[5] Occupancy tax collection and remittance by Airbnb in Wisconsin – Airbnb Help Center

[6] Walworth County, Wisconsin Code of Ordinances. Chapter 26, Art. VII. ARTICLE VII. – OFFERING A RESIDENTIAL DWELLING AS A SHORT TERM RENTAL | Code of Ordinances | Walworth County, WI | Municode Library

[7] Wisconsin Division (walworth.wi.us)

[8] Wisconsin Division (walworth.wi.us)

[9] See Walworth County Code of Ordinances, Chapter 26, Art VII, Sec. 26-343.

The post Wisconsin Law on Airbnbs, VRBOs, and Other Short-Term Rentals appeared first on Wynn at Law, LLC.

There are three types of wills about which you should give some thought. The Last Will and Testament is what most people know about and refer to generally as a “Will.” In addition to the Last Will and Testament, there is also a Living Will and a Pourover Will.

The Last Will and Testament

There are dozens of online templates that suggest you can do this yourself. The problem with that is simple: How many have you done? An experienced attorney will help you create a legally binding document that specifically suits your needs, expresses what your final wishes are, and is tailored to Wisconsin law. That’s so important, because the tool speaks for you after you pass on, directing how you want assets divided and appointing who will be in charge of acting on your estate’s behalf.

The Living Will

The Last Will and Testament becomes effective at your passing, while the Living Will speaks for you when you are unable to speak for yourself due to injury or illness. This document makes known your wishes regarding life prolonging medical treatments. This tool, also called an advanced directive, is every bit as important as the Last Will and Testament. However, a University of Pennsylvania Philadelphia study found that less than a third of adults have a Living Will.

The Pourover Will

We’re covering Trusts next in this series, but you should know that this particular tool can save the day for your loved ones. When you forget or neglect to add all property into your planning documents over the years– and people do forget to go back and revise their estate plan when circumstances change – this tool puts the forgotten property into a Trust. This tool got its name because any assets you failed to title into your trust prior to your passing will “pour over” into the trust after you are gone.

Stay up to date

You’re going to want to review all of these Wills and your wishes periodically, too, because ‘life happens.’ In the following two articles on the Estate Planning Toolbox, Wynn at Law, LLC, guides you through Trusts and Powers of Attorney.

The post Your Estate Planning Toolbox: The Will appeared first on Wynn at Law, LLC.