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 do […]
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Quiet Title Basics, or How to Remove a Mortgage Lien
We see it all the time — an investor bought a property that seemed like a sweet deal, but turned out to have a mortgage on it from a prior owner. No wonder it was so cheap! The investor calls me up and asks me what we can do about it. Let’s set aside the […]
Continue ReadingCARES Act Payroll Tax Credit: The less-talked-about relief for shuttered businesses
We’ve heard a lot of talk, speculation and venting about the two big programs in the CARES Act, the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”). We’ve written about those programs elsewhere. But there’s one big benefit hidden in here that only applies to businesses that have been closed by government […]
Continue ReadingPaycheck Protection Program Information
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 […]
Continue ReadingWhat’s in the CARES Act for small businesses?
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 […]
Continue ReadingDue-on-Sale News: Fannie Mae allows transfers into LLCs
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 a release of […]
Continue ReadingWhy I Don’t Give Free Legal Advice, And Why You Shouldn’t Take It
Any attorney who is been practicing for more than 36 hours has received the inevitable phone call from someone they’ve never met wanting to ask a “quick question.” If you have ever called an attorney and attempted to ask a “quick question,” this article is for you. As a strict matter of policy, I do not give […]
Continue ReadingWhat is an operating agreement?
An LLC Operating Agreement is a legal document that outlines the duties, rights and ownership percentage of the all the members who own the LLC. All of the owners must sign this document. It usually sets forth the financial arrangement of the members, how profits and losses are distributed, who has management rights, and what kind of […]
Continue ReadingCleveland Landlords: Are you compliant?
Did you know that some of that boilerplate language in your lease might cost you thousands of dollars in a lawsuit brought by your tenant? It can happen to you if you are a landlord in the City of Cleveland. The little known Chapter 375 of the Codified Ordinances of Cleveland, Ohio, titled “Landlords and Tenants,” covers […]
Continue ReadingTrusts for Asset Protection: watch your language
In the law, what you say can become really important years down the line in a way that couldn’t be foreseen. In this article, I’ll discuss why the help that most of my clients seek — asset protection — can sometimes backfire when the plan actually needs to protect their assets. The “Asset Protection Trust” […]
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