Uncategorized

Home sale fraud: examples

Posted on

Home sale fraud by the seller is so common that we deal with it nearly every day. When I hold a consultation with a client, it’s often helpful to give examples of prior instances of fraud where a court held the seller liable. This gives us a yardstick of severity by which we can judge […]

Business Law

Dividing the Founders’ Pie: Startup Ownership

Posted on

One of the questions I wish clients would ask more is whether their division of ownership is a fair one. Most owners, in their fairness calculation, apply the following formula: 100% ÷ number of founders This advanced calculus may appear fair and equitable, but the reality is that it ignores many dimensions of the co-founder […]

Real estate

Mechanic’s Lien Basics for Contractors

Posted on

Mechanic’s liens are the easiest way for a contractor to collect from deadbeat customers. The legal process, however, is not easy. Below we’ll detail some of the requirements and give a practical overview of the process. Why a mechanic’s lien? A mechanic’s lien has the same effect as a mortgage on property. If you successfully […]

Real estate

Suing the seller for fraud

Posted on

Every time there’s a torrential downpour, we can count on many new homebuyers calling us with stories of wet basements and leaky roofs. These problems can put a homeowner out thousands. It’s only fair that a seller who advertised the home as perfectly dry and habitable should be held to account for concealing a leaky […]

Mortgage lending

Borrower-paid attorney fees in foreclosure? Unlawful

Posted on

Many promissory notes and mortgages contain a provision awarding attorney’s fees for foreclosing on the borrower. This even includes Fannie Mae’s uniform mortgage for Ohio. Many lenders can and do successfully collect attorney’s fees on collection and foreclosure judgments. However, as we know elsewhere in real estate law, just because the contract says you can […]

Business Law

Paycheck Protection Program Information

Posted on

This is a living document that I will update from time to time as I receive more information from the government, lenders, and the experiences of borrowers. In a nutshell, here are the broad strokes of the program: It’s a loan that can be forgiven to the extent of your payroll, rent, utilities, and mortgage […]

Business Law

What’s in the CARES Act for small businesses?

Posted on

The U.S. Congress has just passed the largest stimulus (nay, “recovery”) bill of all time to help the country weather the COVID-19 crisis — the “Coronavirus Aid, Relief, and Economic Security Act” or the ‘‘CARES Act’’. There’s a lot in here from straight up pork to direct payments to individuals. I’ve been following this process […]

LLCs

Due-on-Sale News: Fannie Mae allows transfers into LLCs

Posted on

An enterprising investor on BiggerPockets discovered this useful nugget in the Fannie Mae Servicing Guide from 2017: Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage Loans D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014) […] D1-4.1-02, Allowable Exemptions Due to the Type of Transfer Unless the previous borrower requests […]