Joint and Several Liability and How It Relates to Real Estate
July 28th, 2011 by Adam Ciboch“Joint and several liability” is related to the law, like many terms you encounter in the field of real estate. Despite the illusion of being self-explanation, it’s not quite as intuitive with how it relates to real estate and affects you as a home owner.
Law dictionaries describe the term as being an obligation entered into by at least two people, making both liable severally and all liable jointly. What this means is actually quite simple. In plainer language it simply means that a creditor can choose to sue anyone who enters into a contract with one or more other people. The creditor can sue the group as a whole or choose to sue only one member of the contracting group for the entire amount. The contract terms must state this for it to apply.
Joint and several liability is often learned in Tort Law courses by most law students. If you’re a homeowner, you’ll probably understand it better in terms of its relation to your property. You as a homeowner can be held jointly and severally liable sometimes if you invite a guest onto your property they they’re injured and decide to sue. You might also be held jointly and severally liable by a co-homeowner for property damage to a home you both own.
A different way to think about it is how people can jointly apply for a credit card. The credit card company can attempt to obtain money from both card holders or, a more likely scenario, they can go after the one person who is in a better financial situation to pay the bill. Property owned jointly often ends up coming out the same way. The situation described above is where this most commonly comes into play. The lender can sue the owner in default, the owner who isn’t, or both jointly, just like in the credit card scenario above.
Liability for a civil wrongdoing is not where this legal concept ends, although joint and several liability may sound as though it’s entirely unrelated to property. To ensure that their property is safe for guests and others who might find themselves making use of it, homeowners who co-own property need to take care. You should also consider ensuring anyone with whom you’d like to co-own is financially stable so the mortgage continues getting paid.
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The Ups and Downs of Home Staging
July 3rd, 2011 by Adam CibochIf you’re considering selling your house, you want to have the best chances of getting it sold as quickly as possible. You might be fine with how your house currently looks, but a potential buyer might think otherwise. Chipped paint on a wall, stains on the carpet, and personalization around the house like family photographs might all turn off a potential buyer. This is why so many sellers consider turning to home staging in order to get their home sold as quickly and effectively as possible.
Home staging has many obvious advantages. Making it stand out above its competitors, it first adds a nice appeal to your home. “Move in ready” homes are what many buyers are looking for. After purchase and before preparing to move in, this means they don’t want to have to do any large scale fixes or projects on the home. You’re that much closer to getting your home sold if you can eliminate those problems, even in the most superficial of ways. In a market that can sometimes be difficult to navigate, you also have a definite leg up. Things that are likely to do the trick include refinishing cabinets, updating handles on drawers and cupboards, and coating your walls with a fresh layer of paint.
Another advantage of staging your home is to receive extra money in the sale of your home. Buyers will pay what your home looks like it’s worth, so make sure you don’t miss out in this regard. Put in a little to stage your home and potentially reap a lot once someone decides to purchase it later. If money is a concern for you, why wouldn’t you consider home staging then?
There is also a relatively large negative to staging your home. It’ll cost you financially to stage your home. It’s a toss-up between spending a few thousand dollars on home staging now and reaping the benefits later at closing, of course. Money is money though and if you don’t have it, it doesn’t matter how advantageous it is to stage your home, obviously.
In the home selling process, home staging consequently has some great benefits. If you’re strapped for cash, the cost is also a pretty big con. Most people will be likely to find that the pros in this situation most definitely outweigh the cons overall, however.
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Home Flooring: How to Choose the Best Material Under Your Very Feet
June 18th, 2011 by Adam CibochA lot of time and money go into the maintenance and design of your home. From the material of your kitchen counters to the color of your walls, every detail should be considered with careful deliberation. One often overlooked area of your home that is just as important, however, is the material you choose for your home’s flooring. Below is an overview of some of the most popular choices.
The first type is laminate. Often lambasted for looking cheaper than wood, laminate flooring gets a bit of a bad rap. The flooring is a great option for those with pets or children, however, since laminate flooring holds up well when faced with a lot of wear and tear. If you have it installed properly, it can also have just as beautiful an effect on your home’s overall feel as more expensive wooden flooring options.
Speaking of wood flooring, it is also a viable option due to its firmness and the nice look it gives a given room. There is also a wonderfully large amount of options available, from softwood to hardwood, as well as different materials from which you can choose such as maple, pine and oak. Wood flooring might be more easily damaged than laminate, but an easy solution is to purchase a large area rug to reduce the risk of scratches to your flooring.
You should also consider carpet as an option, since it is a popular favorite. You will also note its versatility, in that homeowners have the option to choose a myriad of materials and color options. You can purchase anything from durable carpets that can withstand high traffic areas in your home to plush carpets for a more luxurious feel. If the design of your home is a high priority, carpet just might be the best option for you, since it comes with such diverse selections of colors and textures.
Another flooring option is vinyl. Although most people still consider vinyl a cheap and undesirable option, vinyl is gaining in popularity once more among homeowners. You can choose from a variety of different color options and styles, so it no longer looks like the cheap stuff of your childhood. You may be surprised to find that it is very durable and will often surpass the life of other flooring options you might be considering.
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Feldman Law Center – Home Loan Modifications as Homeowners Best Option
January 20th, 2010 by adminFeldman Law Center – News by Feldman Law Center – For all the negatives that have been written about loan modifications, and there have been a lot, the option is far and away the best option for struggling homeowners trying to stay in their homes and preserve their credit scores. As property values have plummeted, the possibility of selling or refinancing the home has been erased. That leaves foreclosure, a short sale, or short refinancing as the remaining options outside of a loan modification for homeowners to resolve their issues with their lenders. All of those options do extreme damage to credit scores and stay on the homeowners’ credit report for a minimum of seven years.
A home loan modification is basically a change in the terms of a homeowner’s existing mortgage with the objective of bringing the monthly mortgage payment back in line with the homeowner’s current financial situation. By modifying the existing mortgage, the transition doesn’t affect the credit score of the homeowner. Additionally, the credit score of the homeowner does not carry much weight in the modification process.
A home loan modification’s main feature is normally the alteration of terms on the existing mortgage’s first five years. It’s not unheard of for modifications to alter terms for the life of the mortgage but most of them cover the first five years. It is hoped by all that conditions in the economy, real estate values, and the job market improve enough by that time that homeowners will either be able to sell the property or afford payments at the higher levels that go into effect once the modified rates revert back to their original levels. The modification benefits the lender by keeping the homeowner in place, which results in continued cash flow from the property, and by preventing the property from going into foreclosure and back on to the books of the lender.
As simple as the process has been made to sound here, the negotiation of terms on a mortgage is not in the normal purview of a homeowner. Hiring legal representation is the best way for a homeowner to ensure that will get the best results possible for their personal situation. An attorney will base the negotiation for the loan modification on the homeowner’s total financial picture, including credit card and consumer debt. Where it makes sense, the firm may initiate debt negotiations, along with the home loan modification, on the other debts carried by the homeowner including credit cards, revolving debt, consumer loans, unpaid medical bills, etc.
The law firm will also assist in the drafting of a hardship letter, which details the conditions of the challenges facing the homeowner. Hardships can include an adjustable rate mortgage with payments that have increased to the point where they are out of reach of the homeowner, pay cuts, job losses, illness, or divorce. The hardship letter should also include the homeowners plan for dealing with and getting past the current hardship. From that point negotiations begin, the ultimate prize being the modification.
If you are struggling with your mortgage payments, are behind on payments, and/or facing foreclosure, talk to an attorney’s office that specializes in home loan modifications. The Feldman Law Center has executed over 600 loan modifications and has the experience and knowledge to get the best possible results to address your specific needs. Call them today at (949) 544 8224.
Obama’s 2% Rate Loan Modification Plan – How it Works & Which Homeowners Qualify
December 11th, 2009 by adminObama’s loan modification plan is available for borrowers facing financial hardship and at risk of losing their home. Under this program, your home loan could be revised so that your monthly payment is reduced to an affordable amount. The goal is to keep families in their homes, stop foreclosures and allow the economy to recover.
The plan is called Home Affordable Modification Program-or HAMP. This home retention plan is paid for by the federal government-your tax dollars-so do not hesitate to take advantage of this helping hand. Over 5 million homeowners are expected to benefit under this $75 billion government program. Here’s the basics of the plan:
- All homeowners who ask for consideration must be reviewed for eligibility-even if they have been turned down previously
- Borrowers must show evidence of a financial hardship or the imminent risk of default
- Lenders must follow a standard formula to determine if a borrower meets the federal qualification guidelines-reducing the interest rate to as low as 2%
- Homeowners who meet the basic guidelines will be asked to submit a loan modification application, including a financial statement and proof of income
The banks are motivated to modify as many loans as possible for a couple of reasons. The lenders will be paid by the Treasury Department for each loan they modify using the standard federal terms. Also, President Obama has strongly encouraged all banks to reach out to homeowners to offer this plan-whether they are behind on their payments or not. If a financial hardship exists, then a homeowner is encouraged to begin the application process.
What should you do if you need a 2% mortgage modification? The first step is to learn more about the federal guidelines for approval and just what it takes to meet those guidelines. Do not complete your paperwork or disclose your financial information until you understand the 4 step formula your bank will use to qualify you. This is not the time to take any chances. Learn, prepare, then apply-this is too important to risk denial.
Obama’s 2% Rate Loan Modification Plan – How it Works & Which Homeowners Qualify
November 19th, 2009 by adminObama’s loan modification plan is available for borrowers facing financial hardship and at risk of losing their home. Under this program, your home loan could be revised so that your monthly payment is reduced to an affordable amount. The goal is to keep families in their homes, stop foreclosures and allow the economy to recover.
The plan is called Home Affordable Modification Program-or HAMP. This home retention plan is paid for by the federal government-your tax dollars-so do not hesitate to take advantage of this helping hand. Over 5 million homeowners are expected to benefit under this $75 billion government program. Here’s the basics of the plan:
- All homeowners who ask for consideration must be reviewed for eligibility-even if they have been turned down previously
- Borrowers must show evidence of a financial hardship or the imminent risk of default
- Lenders must follow a standard formula to determine if a borrower meets the federal qualification guidelines-reducing the interest rate to as low as 2%
- Homeowners who meet the basic guidelines will be asked to submit a loan modification application, including a financial statement and proof of income
The banks are motivated to modify as many loans as possible for a couple of reasons. The lenders will be paid by the Treasury Department for each loan they modify using the standard federal terms. Also, President Obama has strongly encouraged all banks to reach out to homeowners to offer this plan-whether they are behind on their payments or not. If a financial hardship exists, then a homeowner is encouraged to begin the application process.
What should you do if you need a 2% mortgage modification? The first step is to learn more about the federal guidelines for approval and just what it takes to meet those guidelines. Do not complete your paperwork or disclose your financial information until you understand the 4 step formula your bank will use to qualify you. This is not the time to take any chances. Learn, prepare, then apply-this is too important to risk denial.
Obama’s 2% Rate Loan Modification Plan – How it Works & Which Homeowners Qualify
November 16th, 2009 by adminObama’s loan modification plan is available for borrowers facing financial hardship and at risk of losing their home. Under this program, your home loan could be revised so that your monthly payment is reduced to an affordable amount. The goal is to keep families in their homes, stop foreclosures and allow the economy to recover.
The plan is called Home Affordable Modification Program-or HAMP. This home retention plan is paid for by the federal government-your tax dollars-so do not hesitate to take advantage of this helping hand. Over 5 million homeowners are expected to benefit under this $75 billion government program. Here’s the basics of the plan:
- All homeowners who ask for consideration must be reviewed for eligibility-even if they have been turned down previously
- Borrowers must show evidence of a financial hardship or the imminent risk of default
- Lenders must follow a standard formula to determine if a borrower meets the federal qualification guidelines-reducing the interest rate to as low as 2%
- Homeowners who meet the basic guidelines will be asked to submit a loan modification application, including a financial statement and proof of income
The banks are motivated to modify as many loans as possible for a couple of reasons. The lenders will be paid by the Treasury Department for each loan they modify using the standard federal terms. Also, President Obama has strongly encouraged all banks to reach out to homeowners to offer this plan-whether they are behind on their payments or not. If a financial hardship exists, then a homeowner is encouraged to begin the application process.
What should you do if you need a 2% mortgage modification? The first step is to learn more about the federal guidelines for approval and just what it takes to meet those guidelines. Do not complete your paperwork or disclose your financial information until you understand the 4 step formula your bank will use to qualify you. This is not the time to take any chances. Learn, prepare, then apply-this is too important to risk denial.
Alternatives to Foreclosure: What Homeowners Need to Know
November 10th, 2009 by adminIf like thousands of other homeowners in America, you’re at risk for losing your home, you need to educate yourself about what options there are to help you avoid foreclosure. To learn about ways to keep your home, read on…
Speak with a Housing Counselor from HUD
Certified, HUD-approved counseling agencies are located throughout the country, and they’re there to provide free foreclosure avoidance information to homeowners. They can explain the new housing aid programs that have been implemented since President Obama has taken office, let you know if you qualify for any of them, and explain your options for avoiding foreclosure?everything from short sales to refinancing your home loan.
Housing counselors can also advise you on how best to approach your lender. Getting through to the department you need at a financial institution can be intimidating and time consuming, so it’s great to have someone help you cut through the bureaucratic red tape and get a loss mitigation officer on the line.
There are numerous companies out there that offer foreclosure prevention counseling, but they typically require upfront fees. Many of them are actually nothing more than scams designed to prey on people when they’re already down. Stick with agencies that are approved by the Department of Housing and Urban Development, as their services are free and their information is trustworthy.
Talk to Your Lender
As soon as you start to feel the financial pinch, contact your lender. They are the ones that have the power to help you save your home, so you need to communicate with them as soon as possible. Don’t wait until you’re two months behind on your mortgage?try to work out a solution with them now.
The department you want to speak with is Loss Mitigation. It’s their job to retrieve as much of the bank’s money as possible, so they’re often willing to work with struggling homeowners because it’s in their financial best interest to do so. Remember that banks don’t want to get into the real estate business. They don’t want your home; they want their money, so they’ll work with you to get it.
Loan Modification & Refinancing
If you’ve lost your job or have experienced some other loss that will affect your financial health long term, your lender may be willing to refinance your home loan or modify your mortgage. Both options can help you keep your home.
Loan refinancing is an option for homeowners who are still current on their mortgage payments, but know that soon they’ll be underwater financially. Refinancing involves replacing your existing loan with a new one that offers better interest rates and lower monthly payments. The length of the loan term may be extended as well, which means that you’ll end up paying more interest in the long run, but for now, your payments will be much more manageable.
Loan modification on the other hand, is for people who are facing financial hardship, who have missed one or more mortgage payments, and whose property value has diminished.
Modification means that the terms of your current loan are changed in order to reduce the current interest rate and lower your payments. If you’ve missed one or more mortgage payments, you may be able to add these onto the balance of your loan, which can mean a very timely reprieve for you.
To qualify for loan modification, you must prove to the lender that you have no other financial resources, and that modification is your only option. Keep every bill receipt and letter from your lender (including the post-marked envelopes), and gather all your income and expenditure information for the last three to six months.
You’ll also need to explain (and prove) what happened in your life to bring about this financial hardship. Were you laid off? Was there a death in the immediate family? Tell the lender in heartbreaking detail about what’s happened and why you need their help. While they’re not going to forgive your loan out of compassion, they are likely to help you avoid foreclosure because foreclosure is a lose-lose situation for both of you.
