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OK, here we go. Thanks for spotting the incorrect year. I received the house back in February 2012.

I sold the house in 2007, taking back a mortgage (SP $82K, Mtg $77K, the new owners were to have replaced the roof, but did not). They stopped paying the mortgage in May, 2011, except for a partial payment in June of that year. In November, 2011, I hired an attorney and we were able to obtain a Deed in Lieu of Foreclosure (had a title check first), rather than institute foreclosure proceedings, which is a very expensive venture in the State of FL. The Deed in Lieu was recorded in February, 2012.

The basis as of February 24, 2012, is $48,838.00 (house lost 1/2 value) in the interim years. The real estate company appraised the house in January, 2013 for $60K.

I was planning to continue to rent the house; however, she never came through except for the $200.00. Then when I went down there in November, 2012, I was still planning to rent out the house. It was not until January, 2013, that I changed my mind and decided to place it on the market. The house was a great rental house from 1996 until 2007, and still is. In fact, the new owner will be renting it out (good neighborhood, 1 block from top high school in the county). My contractor is now separating the rehab costs by year. The roof was replaced in 2012.

What to do?

Thank you all so much for your help. I prepare my taxes using Tax Act, and this year (for the year 2012) will be a you know what.

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