Commercial foreclosures are, in most cases, very similar to residential foreclosures. The foreclosure may be non-judicial or judicial depending on the state where the property is located and what the loan documents dictate. With both non-judicial and judicial commercial foreclosures, the process starts when the borrower defaults on the mortgage. A default occurs when the borrower falls behind in payments or fails to do something that the loan documents require, such as maintaining hazard insurance on the property. After the default, the lender may accelerate, or call due, the outstanding balance on the loan. Typically, the lender must first send a breach letter to the borrower that outlines the reason for default and gives a time frame during which the borrower may cure the default and avoid acceleration. Usually, the amount of time given to cure a default is thirty days, but this can vary depending on the terms of the mortgage. Once the time period expires, if the borrower has not cured the default, then the lender may commence foreclosure proceedings. Non-judicial Commercial ForeclosuresA non-judicial foreclosure, or power of sale foreclosure, is an out-of-court process. With a commercial foreclosure, just like a residential foreclosure, the lender may proceed non-judicially if the loan documents contain a power of sale clause and if allowed by state foreclosure law. The power of sale clause is located in the deed of trust or mortgage and empowers a trustee sell the property without court supervision. This process typically involves recording a notice of default (or similar document) in the county records, mailing a copy of that notice to the borrower and other interested parties, as well as publishing the notice of default or notice of sale, though non-judicial procedures vary from state to state. Judicial Commercial ForeclosuresJudicial foreclosures are processed through the court system and are initiated when the lender files a lawsuit usually in the form of a complaint for foreclosure or petition for foreclosure against the borrower seeking a judgment of foreclosure and order for sale. First, a title report will be ordered so that the lender’s attorney can determine all interested parties that must be named as defendants in the lawsuit. The defendants might include lien holders (like junior mortgage holders) or the U.S. Internal Revenue Service, if there is a federal tax lien on the property. The attorney will also receive copies of all underlying commercial mortgage documents, including the mortgage, the security agreement, the assignment of leases (if any), the assignment of rents (if any), any UCC filings, and any guaranties. Because commercial loans are often taken out in the name of the business, in many cases the business owner will have provided a personal guaranty pledging payment of the loan. The business owner as guarantor will also be included as a defendant in the foreclosure suit, along with the business itself. Each defendant must be served with a copy of the complaint for foreclosure, either personally or by publication if a particular defendant can’t be found. Defendants are given a certain amount of time, often 20 or 30 days, to file an answer to the complaint. In an uncontested foreclosure, the lender’s attorney will file a motion to obtain a judgment. In a contested case, the matter will typically proceed to trial. Once the judgment and order of sale have been entered, notice of the sale date will be given to the defendants and might be published, depending on state requirements. The foreclosure sale will be held, and the property will be deeded to the new owner after any applicable redemption period has expired. Potential Defenses in a Commercial ForeclosureIn a commercial foreclosure, just like with residential foreclosures, many potential defenses are available to a property owner to fight the action. Possible defenses include: Tenants’ Rights Following a Commercial ForeclosureThe rights of any tenants in a foreclosed commercial property will depend on the terms of the lease and the date on which the lease was signed. The tenant’s interest could potentially be terminated by a foreclosure due to the legal concept referred to as “first in time, first in right,” which allows the purchaser of a foreclosed property to void a lease if the mortgage was executed before the execution of the lease. (See our article on The First in Time, First in Right Rule.) Many commercial leases contain a subordination, non-disturbance, and attornment agreement, or SNDA. Under the terms of an SNDA, the tenant agrees to subordinate, or make junior, its interest in the lease to any lender making a loan secured by the commercial property; the tenant agrees to attorn to, or recognize, any new owner of the commercial property as its landlord; and any new owner of the commercial property agrees not to disturb the tenant’s possession of the property as long as the tenant pays rent and complies with the terms of the lease. For tenants, an SNDA provides some assurance that their rights to their premises will be preserved even if the property is foreclosed. Forbearance AttorneyOne workout option for commercial loans as well as residential loans is forbearance. Forbearance is when the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period. Sometimes the lender will also agree to waive or modify a mortgage requirement that the borrower is unable to meet. In a forbearance, the lender retains the right to resume the foreclosure once the forbearance period expires if the agreed-upon conditions are not met. Lawyer For A Loan ModificationA commercial loan workout could also consist of a loan restructuring by means of a loan modification. With a modification, the lender might agree to: Short Sale LawyerAnother possible commercial loan workout option is a short sale. In a commercial short sale, as with a residential short sale, the borrower sells the property for a price that is less than the total debt. The lender agrees to release its lien on the property and to accept the proceeds of the sale in full or partial satisfaction of the outstanding indebtedness. Depending on the terms of the short sale agreement, the lender might be able to get a deficiency judgment by filing a lawsuit following the short sale. Lenders are, in general, more likely to seek a deficiency judgment after the short sale of a commercial property than a residential property. Attorney for Deed in Lieu of ForeclosureA deed in lieu of foreclosure is also sometimes an option for commercial borrowers who are facing foreclosure. A deed in lieu of foreclosure is a transaction in which the borrower voluntarily transfers title to the commercial property to the lender in exchange for the lender releasing the mortgage lien in full or partial satisfaction of the outstanding indebtedness. Borrowers are commonly given a release of all liability with deeds in lieu of foreclosure. But if the property is severely underwater (where the value of the property is significantly less than the total debt), the lender might require an additional payment or insist it retain the right to seek a deficiency judgment. A key benefit to a commercial deed in lieu of foreclosure transaction is that it generally provides a smoother transition of the commercial property than a foreclosure. Usually, there is a mutual cooperation clause in the agreement so that files, leases, and other records are easily transferred, and other issues that might come up are addressed. For this reason, lenders are sometimes more willing to consider a deed in lieu of foreclosure as an alternative to foreclosure for commercial properties than they are for residential properties. Difference between Commercial and Residential WorkoutsWorkouts that are available for commercial properties are generally very similar to those that are available for residential properties. But one significant difference in the process of negotiating a workout involves the pre-negotiation letter. Whether a commercial property owner is seeking forbearance, loan modification, short sale, or deed in lieu of foreclosure, the commercial workout process often starts with the pre-negotiation letter, which provides an outline for the preliminary discussions about the workout. The purpose of the pre-negotiation letter is to avoid any misunderstandings during the workout negotiations. The letter will set the ground rules for the workout discussions, preserve the lender’s rights regarding the existing default, and might eliminate the ability of the borrower to later claim that the lender made verbal promises or otherwise acted improperly regarding the workout. The letter will typically require the borrower to acknowledge that a workout agreement is not binding until and unless it is formalized in writing and has been signed by all parties. Commercial Real Estate ForeclosuresWhen considering investing in real estate, do not overlook the opportunities in income producing properties. Commercial real estate investment is an industry that offers one of the surest ways to gain wealth with the lowest barriers to entry. Real estate markets have ups and downs, with values fluctuating due to market conditions in certain localities primarily driven by overbuilding and high interest rates. Commercial real estate typically does not react to those outside factors in such broad swings. Values on commercial real estate tend to follow a steady upward path. The fact that a property is available through a real estate agent specializing in foreclosures, or on the foreclosure.com website, does not mean there is something wrong with it. Properties in this category are more likely to be in foreclosure or bankruptcy on an account of problems of the owner/developer than from forces directly related to the property. Prime properties and excellent opportunities abound in the commercial real estate space. Banks can be a good source of distressed commercial properties. They exist to attract accounts and make loans. Managing real estate is outside their area of expertise. Creditors end up owning properties they never intended to own, and are stuck with REO (Real Estate Owned), a particularly unwelcome item on their balance sheets. From an accounting standpoint, while real estate for owner/investors is an asset on its books, it is the opposite in terms of banking bookkeeping. Real estate on a bank’s balance sheet appears on the liability side of the leger. It is a liability that drags down their net worth and causes their auditors and regulators to restrict their lending activities. Thus the banks are highly motivated to move properties off their books, and often decide to cut their losses by discounting the sales price for a quick sale. One thing that banks are particularly bad at owns real estate, so any real estate on the books of a lender is an opportunity for an investor. The pathway to success in commercial real estate can be shortened by researching the commercial foreclosure and business foreclosure markets. Foreclosure Rules Vary from State to StateFirst of all, as with most real estate laws, foreclosure rights and procedures are different in each state. These differences can be minor variations in things such as how many times a lender must publish notice of a foreclosure sale, or the number of days a borrower has to respond to a lawsuit. They can also, however, vary significantly in terms of borrower and lender rights. For example, a borrower may or may not have the right of redemption, which is the ability to recover their property following a foreclosure sale by paying the sale price, interest and other costs to the winning bidder or if the redemption happens before the sale, by paying the lender its outstanding debt and other costs. Procedural RequirementsBecause foreclosures result in the loss of property, including people’s homes, strict compliance with procedural items, such as the method and form various notices must take, is required. Accordingly, knowing when, where and what form notices must take (as well as all other procedural requirements) is critical to a successful foreclosure. While there may be some similarities, the procedural requirements for a foreclosure can vary widely from state to state. Time to Complete the ProcessDepending on the state, foreclosures can occur as quickly as 30 days, and up to seven months (or longer). Deficiency JudgmentsWhere the proceeds from the foreclosure sale aren’t enough to pay the borrower’s unpaid debt, the lender may be able to obtain a deficiency judgment against the borrower for the difference. Some states permit them, and some do not. Generally such judgments are not available where a deed of trust was used. Again, however, even where a deficiency judgment is permitted, the states can differ on their application, such as the time period in which it must occur and conditions on its availability (e.g., a borrower may be able to avoid a deficiency judgment if it agrees to a sale of the property prior to foreclosure). Commercial Property Foreclosure LawyerWhen you need a Commercial Property Foreclosure Lawyer call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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When a couple is divorcing or separating, they generally have a variety of assets that will need to be divided between them. Assets might include a home or other real property, a business, bank accounts, or retirement accounts. What Kind Of Assets Are Divided In A Divorce?• Money: You and your spouse likely have some financial assets. These financial assets generally include bank (your checking and savings), investment accounts, stocks and bonds, mutual funds, and cash. Accounts held in your minor children’s names or jointly with another person should also be considered. You may be able to find a list of all money accounts by reviewing the 1099 Forms used to complete your Income Tax Forms. • Debt Repayment: If you or your spouse loaned money to someone, and you are owed repayment of that debt still, that debt is an asset. • Degree or professional license: If and how degrees and licenses are valued as assets varies by state. Consult your divorce attorney to determine if these are an asset in the divorce. What Happens in a Divorce?Although divorce is common throughout the United States, the divorce process varies depending on the couple’s situation. Short-term marriages without children or property typically result in a less complex and time-consuming divorce than long-term marriages with significant property entanglements, marital debt, and minor children. Additionally, divorcing couples who work together to negotiate the terms of the divorce (child custody, child support, property division, debt allocation, and spousal support) will experience a less expensive and less stressful divorce than couples who can’t agree or refuse to work together. Step Two: Asking for Temporary OrdersCourts understand that the waiting period for divorce may not be possible for all couples. For example, if you are a stay-at-home parent that is raising your children and dependent on your spouse for financial support, waiting for 6-months for the judge to finalize your divorce probably seems impossible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. If you request a temporary order, the court will hold a hearing and request information from each spouse before deciding how to rule on the application. The judge will usually grant the temporary order quickly, and it will remain valid until the court orders otherwise or until the judge finalizes the divorce. Other temporary orders may include a request for status quo payments or temporary property restraining orders. Status quo orders typically require the breadwinner to continue paying marital debts throughout the divorce process. Temporary property restraining orders protect the marital estate from either spouse selling, giving away, or otherwise disposing of marital property during the divorce process. Restraining orders are usually mutual, meaning both spouses must follow it or risk being penalized by the court. If you need a temporary order but didn’t file your request at the time you filed for divorce, you’ll need to apply for temporary orders as quickly as possible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. Step Three: Serve Your Spouse and Wait for a ResponseAfter you file the petition for divorce and request for temporary orders, you need to provide a copy of the paperwork to your spouse and file proof of service with the court. Proof of service is a document that tells the court that you met the statutory requirements for giving a copy of the petition to your spouse. If you don’t properly serve your spouse, or if you neglect to file a proof of service with the court, the judge will be unable to proceed with your divorce case. Service of process can be easy, especially if your spouse agrees with the divorce and is willing to sign an acknowledgment of service. However, some spouses, especially ones that want to stay married or make the process complicated, can be evasive or try anything to frustrate the process. The easiest way to ensure proper service is for the filing spouse to hire a professional who is licensed and experienced in delivering legal documents to difficult parties. The cost is usually minimal and can help prevent a delay in your case. If your spouse retained an attorney, you could arrange to have the paperwork delivered to the attorney’s office. The party who receives the paperwork (usually titled “defendant” or “respondent”) must file an answer or reply to the divorce petition within a prescribed amount of time. Failure to respond could result in a “default” judgment against the non-responding spouse, which can be complicated and expensive to reverse. The responding party has the option to dispute the grounds for divorce (if a fault divorce), the allegations in the petition, or assert any disagreements as to property, support, custody, or any other divorce-related issues. Step Four: Negotiate a Settlement Marital Property and Separate PropertyIn a divorce, the distribution of property depends on which property belongs to the marriage – marital property – and which property belongs to each of the two spouses – separate property. Generally, marital property is property acquired or earned during the marriage, including earned income. Property used for the benefit of the marriage, even if it started out as separate property, may also be considered marital property. Separate property includes anything that belonged to one spouse before marriage and was kept separate throughout the marriage. It could also include property given only to one spouse during the marriage, like a gift made to the husband alone or an inheritance that the wife received from a member of her family. The most common types of property divided at divorce are real property like the family home, personal property like jewelry and clothing, and intangible financial assets like income, dividends, and benefits. All of the marital property must be divided between the spouses when the marriage ends, and marital debts must also be divided. The spouse who owns separate property gets to keep that property–it can’t be awarded to the other spouse. Equitable Division of PropertyRather than rely on a hard and fast set of rules when splitting property between spouses, judges in Utah have discretion to consider a variety of factors unique to each marriage. Despite the court’s relative freedom to decide what is fair, it should always consider the length of the marriage and how the spouses acquired the marital property. It should also look at the conditions each spouse will face alone after the divorce, such as medical needs, and childcare costs. Each spouse’s level of education and earning potential are also relevant. Judges may divide property unequally after taking these factors, and others, into account. Alimony Determined as Part of Equitable DivisionIn Utah, courts consider alimony as part of the equitable division of marital property. Alimony is a payment from one spouse to the other to help the recipient spouse maintain a lifestyle as close as possible to the standard of living the parties enjoyed during the marriage–and specifically, at the time they separated. If it is more equitable, the court might base alimony on the standard of living at the time of trial. The court also has the option to base alimony on the standard of living at the time of marriage if the marriage was short and there are no children. To determine the amount of alimony due, the court may consider either spouse’s fault in the deterioration of the marriage. The court also evaluates the recipient spouse’s financial resources, earning capacity, and whether that spouse worked in a business owned or operated by the obligated spouse (the one who has to pay). Additionally, the court looks at the obligated spouse’s ability to pay, the length of the marriage, who has custody of the children, and whether the obligated spouse’s earning capacity increased because the recipient spouse contributed to education or training during marriage. If one spouse is at the threshold of a major change in income because of the collective efforts of both spouses, that change also will be a factor in how the court divides the marital property and in the alimony award. Conversely, for a short marriage, the court could attempt to put the spouses back where they started as newlyweds, in terms of financial resources. Generally, alimony payments can last only as long as the number of years the marriage existed. Marital Settlement AgreementsThroughout the process, divorcing spouses have opportunities to agree between themselves on what is a fair division. They can decide to sell certain assets and divide the proceeds, while allowing each spouse to keep certain other assets. Whatever agreements the spouses make, they can submit a marital settlement agreement to the court and a court will generally accept the agreement without further involvement. On the other hand, if the spouses cannot work together, or if there are certain items of property that they cannot agree on, then the court will decide for them. Divorce AttorneyWhen you need a Utah Divorce Attorney, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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Apartment Building Investor Attorney Divorce Mediation Salt Lake City Residential Property Foreclosure Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Top Asset Division Divorce Attorney first appeared on Michael Anderson. When mortgage borrowers fail to make their monthly payments as agreed upon, a lender may seize their property and sell it to a new buyer to help recover the mortgage balance. This is called a foreclosure Foreclosures occur due to non-payment, and though the process and timelines vary by state, the end result is the same: The mortgage borrower loses his or her home. Once the lender takes control of the property, it can sell it off to make up for financial losses on the home. Investors and consumers can purchase these homes—often at auctions or directly from the bank or government agency that owns them. Why Foreclosures HappenForeclosures, at their most basic, occur because the homeowner has failed to make agreed-upon payments with their mortgage lender. The reasons behind this non-payment can vary. Sometimes, job or income loss is the culprit; for other borrowers, medical bills or credit card debt made it impossible to stay afloat. In some cases, it may be due to bankruptcy, divorce, disability, or other personal or financial issues. Pros & Cons of Foreclosed PropertyPros That’s about where the perks end, though. Foreclosed properties often come in poor condition and require many repairs—repairs the seller is typically unwilling to make (the majority are sold as-is). Additionally, you may not be able to finance the purchase via a traditional mortgage loan, especially if you buy it at auction. In most cases, property auctions require all-cash bids. Finally, there are concerns regarding the previous homeowners. These include: Stages of ForeclosureThe actual foreclosure process that a lender must go through to seize a property varies by state. In some places, foreclosures must advance through judicial proceedings before the home can be seized. In others, there are non-judicial options. Legally, a foreclosure cannot be initiated until a borrower is at least 120 days behind on their mortgage payments. How to Negotiate With SellersWhen buying a foreclosure, you’re often purchasing from a large financial institution like a bank or private lender. Because of this, offers usually require multiple approvals and may take longer to move through the pipeline. You can generally expect negotiations to be slower and more difficult than they would be with a traditional seller. Additionally, banks are looking to recoup as much of their losses as possible. As such, they’ll usually present a counteroffer during negotiation which, again, must be approved by several people. When purchasing in a traditional home sale, you can include a home inspection contingency and negotiate on repairs and pricing based on the inspection’s findings. When buying a foreclosed property at auction, individual buyer contingencies (and thus the negotiations based on them) are not allowed. Your best bet for negotiating a foreclosure purchase is to engage a real estate agent—ideally one with foreclosure experience. He or she will be able to help you craft a competitive offer based on comparable sales and market conditions. Phases Of A ForeclosurePhase 1: Payment Default Throughout the foreclosure process, many lenders will attempt to make arrangements for the borrower to get caught up on the loan and avoid foreclosure. The obvious problem is that when a borrower cannot meet one payment, it becomes increasingly difficult to catch up on multiple payments. If there is a chance that you can catch up on payments—for instance, you just started a new job following a period of unemployment—it is worth speaking with your lender. If a foreclosure is unavoidable, knowing what to expect throughout the process can help prepare you for the six phases of foreclosure. How Do Foreclosures Work?Foreclosure is generally a slow process. If you make one payment a few days or weeks late, you’re probably not facing eviction. However, you may face late fees in as little as 10 to 15 days. That’s why it’s important to communicate with your lender as early as possible if you’ve fallen on hard times or expect to in the near future—it might not be too late to avoid foreclosure. The foreclosure process itself varies from lender to lender and laws are different in each state; however, the description below is a rough overview of what you might experience. The entire process could take several months at a minimum. You will generally start to receive communications as soon as you miss one payment, and those communications might include a notice of intent to move forward with the foreclosure process. In general, lenders initiate foreclosure proceedings three to six months after you miss your first mortgage payment. Once you’ve missed payments for three months, you may be given a “Demand Letter” or “Notice to Accelerate” requesting payment within 30 days. If, by the end of the fourth month of missed payments, you still have not made the payment, many lenders will consider your loan to be in default and will refer you to the lender’s attorney. This is when things get critical. Consequences of a ForeclosureThe main outcome of going through foreclosure is, of course, the forced sale and eviction from your home. You’ll need to find another place to live, and the process could be extremely stressful for you and your family. How foreclosures work also makes them expensive. As you stop making payments, your lender may charge late fees, and you might pay legal fees out of pocket to fight foreclosure.9 Any fees added to your account will increase your debt to the lender, and you might still owe money after your home is taken and sold if the sales proceeds are not sufficient (known as a “deficiency”). A foreclosure will also hurt your credit scores. Your credit reports will show the foreclosure starting a month or two after the lender initiates foreclosure proceedings, and it will stay on the report for seven years. You’ll have a hard time borrowing to buy another home (although you might be able to get certain government loans within one to two years), and you’ll also have difficulty getting affordable loans of any kind. Your credit scores can also affect other areas of your life, such as (in limited cases) your ability to get a job. How to Avoid a Foreclosure?The act of taking back your home is the last resort for lenders who have given up hope of being paid. The process is time-consuming and expensive for them (although they can try to pass along some of those fees to you), and it is extremely unpleasant for borrowers. Fortunately, you can follow some tips to prevent foreclosure: Foreclosure AttorneyWhen you need a Residential Property Foreclosure Attorney, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Probate A Will Without A Lawyer Why You Should Hire A Personal Injury lawyer In Utah Lien Stripping During Bankruptcy Apartment Building Investor Attorney Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Residential Property Foreclosure first appeared on Michael Anderson. A qualified institutional buyer (QIB), in United States law and finance, is a purchaser of securities that is deemed financially sophisticated and is legally recognized by securities market regulators to need less protection from issuers than most public investors. Typically, the qualifications for this designation are based on an investor’s total assets under management and specific legal conditions in the country where the fund is located. Rule 144A requires an institution to manage at least $100 million in securities from issuers not affiliated with the institution to be considered a QIB. If the institution is a bank or savings and loans thrift they must have a net worth of at least $25 million. If the institution is a registered dealer acting for its own account it must in the aggregate own and invest on a discretionary basis at least $10 million of securities of issuers not affiliated with the dealer. Certain private placements of stocks and bonds are made available only to qualified institutional buyers to limit regulatory restrictions and public filing requirements. Understanding Qualified Institutional Buyer (QIB)In general, a QIB is any entity included within one of the categories of accredited investor defined in Rule 501 of Regulation D, acting for its own account or the accounts of other QIBs, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers not affiliated with the entity ($10 million for a broker-dealer). In addition to the qualifications above, banks and savings and loan associations must have a net worth of at least $25 million to be deemed QIBs. QIBs can be foreign or domestic entities, but must be institutions. Individuals cannot be QIBs, no matter how wealthy or sophisticated they are. A broker-dealer acting as a riskless principal for an identified QIB would itself be deemed a QIB. To qualify as a riskless principal, the broker-dealer must have a commitment from the QIB that it will simultaneously purchase the securities from the broker-dealer. The commitment from the QIB must be effective at the time of purchase in the Rule 144A transaction. A QIB may be formed merely for the purpose of investing in a Rule 144A transaction. The qualified institutional buyer designation is often conferred upon entities comprised of sophisticated investors. Essentially these individuals or entities, due to their experience, assets under management (AUM), and/or net worth, are considered not to require the type of regulatory oversight when purchasing securities that unsophisticated, regular investors often need. Typically, a QIB is a company that manages a minimum investment of $100 million in securities on a discretionary basis or is a registered broker-dealer with at least a $10 million investment in non-affiliated securities. The range of entities deemed qualified institutional buyers (QIB’s) include savings and loans associations (which must have a net worth of $25 million), banks, investment and insurance companies, employee benefit plans and entities completely owned by accredited investors. Under Rule 144A, QIB’s are allowed to trade securities on the market, which increases the liquidity for these securities. This rule provides a safe harbour exemption against the SEC’s registration requirements for securities. Typically, transactions conducted under Rule 144A include offerings by foreign investors looking to avoid U.S. reporting requirements, private placements of debt, and preferred securities of public issuers and common stock offerings from issuers that do not report. What Is Rule 144?Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission that sets the conditions under which restricted, unregistered, and control securities can be sold or resold. Rule 144 provides an exemption from registration requirements to sell the securities through public markets if a number of specific conditions are met. The regulation applies to all types of sellers, in addition to issuers of securities, underwriters, and dealers. Understanding Rule 144Rule 144 regulates transactions with restricted, unregistered and control securities. These type of securities are typically acquired in unregistered, private sales or constitute a controlling stake in an issuing company. Investors may acquire restricted securities through private placements or other stock benefit plans offered to a company’s employees. Securities Act Rule 144 Under the SECThis rule governs the sales of controlled and restricted securities in the marketplace. This rule protects the interests of issuing companies, because the sales are so close to their interests. Section 5 of the Securities Act of 1933 governs all offers and sales and requires them to be registered with the SEC or to qualify for an exemption from registration requirements. Rule 144 offers an exemption, allowing the public resale of controlled and restricted securities, if certain conditions are met. This includes the length of time securities are held, the method used to sell them and the number that are sold in any one sale. Even if all requirements have been met, sellers are not permitted to conduct sales of restricted securities to the public until a transfer agent has been secured. What Is SEC Form 144: Notice of Proposed Sale of Securities?An executive officer, director, or affiliate of a company must file SEC Form 144: Notice of Proposed Sale of Securities with the Securities and Exchange Commission or SEC when placing an order to sell that company’s stock during any three-month period in which the sale exceeds 5,000 shares or units or has an aggregate sales price greater than $50,000. This is also known as Rule 144. Who Can File SEC Form 144: Notice of Proposed Sale of Securities?According to the SEC’s website, the party filing Form 144 must have a bona fide intention to sell the securities referred to in the Form 144 within a reasonable time frame after filling. Since sales covered under Form 144 are often very close to the interests of the issuing company, at times filers must register the securities under Section 5 of the Securities Act of 1933. If the correct conditions are met, Rule 144 can provide an exemption and permit the public resale of restricted or control securities. Still, all parties must obtain a transfer agent to remove the securities’ legend prior to sale. Notice of Proposed Sale of SecuritiesForm 144 must be filed with the SEC by an affiliate of the issuer as a notice of the proposed sale of securities in reliance on Rule 144, when the amount to be sold under Rule 144 by the affiliate during any three-month period exceeds 5,000 shares or units or has an aggregate sales price in excess of $50,000. A person filing a Form 144 must have a bona fide intention to sell the securities referred to in the Form within a reasonable time after the filing of the Form. While the SEC does not require the form to be sent electronically to the SEC’s EDGAR database, some filers choose to do so. The Difference between 144A and Regulation SRule 144A, often referred to as a 144A offering, is an SEC rule issued in 1990 that modified a two-year holding period requirement on privately placed securities by permitting QIBs to trade these positions among themselves. Prior to this the holding period for such private stock was different. A 144A offering is a U.S. based offering, and typically is considered an alternative to the timely and costly initial public offering. Regulation S often referred to as Reg S, are bonds or stocks that may not be offered, sold or delivered within the U.S. Additionally, they may not be on behalf or for the account or benefit of U.S. citizens, unless pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act. Reg S has many restrictions, as can be seen, for United States residents. The US SEC 144A and REG S restrictions are related to markets in the US. 144A is restricted to QIBs (Qualified Institutional Buyers) in the US and REG S cannot be held by holders in the US. Additionally, before, bonds sold under Regulation S (Reg S), can only be offered in the U.S. to qualified institutional buyers (QIBs) in reliance on Rule 144A. QIBs are in fact one of the only groups permitted to invest in Reg S offerings. Regulation S and Rule 144A are sections of the US Securities Act of 1933 governing an offer or sale of securities by a non-US issuer. As a general rule, securities of a non-US company may only be offered for sale within the United States pursuant to the registration of those securities with the US Securities and Exchange Commission or pursuant to an exemption from registration. An exempt offering of securities of an non-US issuer into the United States may be effected under Rule 144A (a restricted offering). A restricted offering into the States is often combined with an unrestricted placement of securities offshore (i.e. outside of the US) under the provisions of Regulation S. The difference between Reg S and 144A is that 144A can only be held by Qualified Institutional Buyers (QIBs) in the US. Reg S can be held by holders in the rest of the world outside the US. They are therefore usually referred to as the US and European portions of a GDR. Non-US issuers can apply for an exemption from the Securities Act 1933 under Rule 144A. This means the stock can only be held by QIBs. Regulation S of the Securities Act 1933 is applicable to transactions outside the US (Offshore Offerings). They are prohibited from being sold in the US and cannot be integrated with the 144A offering. Again, it exempts the issuer from certain SEC reporting requirements. Requirements to qualify as a QIBThe U.S. Securities and Exchange Commission (SEC) requires that an entity meet one of the following requirements to qualify as a QIB: • Any registered dealer acting in a riskless principal transaction on behalf of a qualified institutional buyer. How Does a Qualified Institutional Buyer (QIB) Work?A QIB can be an insurance company, a bank, a 401(k) plan, an employee benefit plan, a trust fund, a business development company (BDC), a charity, or even an entity owned by qualified investors. QIBs are regarded as highly sophisticated entities that do not need as much protection as less sophisticated investors or entities. Why Does a Qualified Institutional Buyer (QIB) Matter?QIBs are allowed to buy private placements under SEC Rule 144A. These offerings are generally not registered with the SEC, and therefore they are only available to those whom the courts have found able to fend for themselves. Foreign issuers can also make limited offerings to American QIBs, as legally permissible. Securities LawyerWhen you need legal help with a Securities Lawyer in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Probate A Will Without A Lawyer Taxes On A Sole Proprietorship Apartment Building Investor Attorney Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Can An Individual Be A QIB? first appeared on Michael Anderson. A real estate attorney can be a valuable partner when buying or selling property. But is one always necessary? Definitely not. Though real estate lawyers can certainly help resolve disputes, navigate complications, or even just provide general guidance, they’re not right for every transaction. What Does A Real Estate Attorney Do?Real estate attorneys can assist in a number of capacities, both in the residential space and the commercial one. They help with drafting contracts and legal documents, deal with construction and development issues, and might even attend your closing appointment. One of the most common reasons you’d use a real estate attorney is to draw up a contract or legal document. Attorneys can help you draft:
They can also assist with real estate litigation and disputes, including title or land disputes, enforcement of legal contracts, and more. The states where you’ll most likely need an attorney include: • You’re building or buying real estate for your business. Finding A Real Estate AttorneyIf you’ve decided you want the help of a real estate attorney, ask your lender, title company, or real estate agent for a referral. You can also ask for recommendations from friends and loved ones. Before hiring a lawyer, schedule a consultation to see if it’s the right fit. Do they have experience with the type of transaction or issue you’re dealing with? How does their fee structure work, and when is payment required? You should also make sure to choose an attorney in the right part of the industry, as residential and commercial real estate transactions are very different. If your state doesn’t require a real estate attorney, there’s a good chance you can proceed without one. As long as you choose an experienced real estate agent, they should be able to guide you through most of your real estate transaction. If you come across any legal issues or disputes, though, a trained attorney is always your best defense. Why an Out of State Investor Should Hire an AttorneyThe purchase or sale of real estate, whether it is a single family house, a multi-family apartment building, vacant land or a commercial building, is an intricate process that begins with the signing of a contract and ends when the keys and the title to the property are transferred to the purchaser. Although Utah law does not require that a real estate attorney be involved to assist with the steps that occur between the time contracting and closing, hiring a local real estate attorney to assist you with the purchase or sale of real estate in Utah is almost always a wise decision and is money well-spent. Considering the fact that the other party to the transaction will almost always have a local real attorney representing them, I want to highlight a few of the reasons why you should always follow suit and hire a local real estate attorney in Utah when you are involved in a real estate transaction. What Benefit Does Hiring An Attorney Provide • Real estate attorneys decrease the likelihood of post-closing litigation: Local real estate attorneys typically charge small (and reasonable) flat fees, to represent you from the time you go under contract until the time of closing. Litigation attorneys tend to be much more expensive, charging several hundred dollars per hour and requesting a several thousand dollar up front retainer fee to begin working on the matter. Hiring a local real estate attorney will significantly reduce the likelihood of post-closing disputes. Disputes can arise from ambiguities or mistakes in the purchase and sale contract, issues with the condition or state of “title” or problems with the condition of the property after legal ownership has passed to the purchaser. A local real estate attorney will review the contract to make sure that the paragraphs and the terms therein are clear, understandable, customary and otherwise problem free, that any issues with title to the property are discovered and addressed prior to closing, that any agreements regarding repairs to the property are properly memorialized in writing, and that all legally required pre-closing disclosures are properly made. Expensive post-closing litigation is far less likely if both sides hire local real estate attorneys from the time that the contract is signed until the time the closing occurs. Since post-closing litigation is expensive, time consuming and unpredictable (in terms of the likelihood that a favorable result can be obtained) many times the purchaser just ends up having to accept/assume the fact that mistakes were made and the resulting unforeseen financial responsibility and move on. • Real estate attorneys will save you incredible amounts of time: In a real estate transaction, both the seller and the purchaser have several obligations that must be met before closing. In addition to disclosures, communications must be made initially and continuously. Ongoing communication between the parties is the recipe for a “smooth closing” and is required to satisfy local municipal requirements or to satisfy the multitude of requests made by the lenders, homeowners’ associations, title companies and the county tax assessor who are associated with the property and the transaction as a whole. This is a time-intensive process for even experienced local real estate attorneys who deal with these steps on a regular, if not daily, basis. Even if you can complete these tasks flawlessly and timely without the assistance of an attorney, it will be extremely time consuming for you. More likely, without the assistance of a local real estate attorney, mistakes that are ordinarily preventable will occur and those mistakes often cause the closing to be postponed for several months or the deal to fall through entirely. • Real estate attorneys make sure that title passes cleanly from the seller to the buyer: One of the key roles that local real estate attorneys play in a real estate transaction is they act as a title agent. The title agent works with the title company to ensure that the seller actually has the right to pass full legal ownership (“title”) of the property to the purchaser. If there are any impediments to this right, a title agent will identify them and work with the parties and the title company to resolve these issues before the transaction is set for closing. In addition to the contract, disclosures, and the due diligence materials provided by the Seller, the purchaser’s attorney typically reviews the plat of survey depicting the property and the deed that is given to the purchaser at closing to ensure that the purchaser actually receives full legal ownership to property that the purchaser has contracted to purchase. This is highly technical work on both sides, and it is extremely important in order to protect the interests of both parties. Keep in mind, because attorneys only represent one party in a real estate transaction, you cannot assume that everything is as it should be/good/OK simply because another party to a real estate transaction has hired a local real estate attorney to assist them. What Real Estate Law CoversReal estate law encompasses the purchase and sale of real property, meaning land and any structure on it. It also covers legal issues related to anything that is attached to the property or structures, such as appliances and fixtures. Lawyers who specialize in this branch of the legal system ensure that proper procedures are followed during the acquisition or sale of property. They also may be concerned with the use of property. Real estate law covers deeds, property taxes, estate planning, zoning, and titles. All of these laws vary by state and by local government. Attorneys must be licensed to practice in the state where the transaction is taking place and must be up to date on any local or state changes that could affect a transaction. Real Estate Attorney’s ResponsibilitiesA real estate attorney is equipped to prepare and review documents relating to real estate such as purchase agreements, mortgage documents, title documents, and transfer documents. A real estate attorney hired to handle a transaction will always attend the closing with the buyer. This is when the money is paid and the title is transferred. The attorney is there to ensure that the transfer is legal, binding, and in the best interests of the client. During the purchase of a property, the real estate attorney and staff might prepare documents, write title insurance policies, complete title searches on the property, and handle the transfer of funds for the purchase. If the purchase is being financed, the attorney is responsible for paperwork such as the federal HUD-1 Form and related transfer of funds documentation for the buyer’s lender. In the case of a real estate dispute, such as chain of title, lot line problems, or other issues involving contracts, the attorney will resolve the problem. A real estate attorney may also provide legal representation for either a buyer or a seller when a dispute winds up in a courtroom. The real estate attorney obtains facts from both sides of the dispute and tries to bring them to a resolution. This may mean hiring a surveyor or title company to work through some of the details. Like any lawyer, a real estate lawyer has earned a law degree, which typically takes three years of study for a full-time student, and has passed the state bar exam administered by the state in which he or she practices. Training for a specialization like real estate law may begin with elective courses and internships during law school and may continue afterward for certification in real estate law. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
What Is An Investment Memorandum? Alimony For Cheaters In Divorce Probate A Will Without A Lawyer Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Apartment Building Investor Attorney first appeared on Michael Anderson. Probate is the Utah court process for wrapping up the undertakings of an individual who has passed on. The legitimate procedure for doing this differs extraordinarily from state to state. In 1977, Utah received the Utah Uniform Probate Code which is found in Sections 75-1-101 through 75-8-101 of the Utah Code. These laws control the Utah probate process. At the point when an individual dies, the family and heirs will need to choose if a probate is necessary. All in all, a probate will be fundamental at whatever point the expired left property in his or her name which can’t be passed on to the cutting edge heirs without a court request. Our probate lawyers offer you a free consultation to check whether you can stay away from a probate. In the event that a probate is essential, the outline above demonstrates to you the procedure. Utah probates advance through three phases: STAGE 1 – Choices at the opening phase of the probate: The opening phase of an Utah probate requires choices on arrangement of the “Individual Representative” (“executor” in certain states) and an assurance that the will is substantial, on the off chance that one exists. Opening the probate INFORMALLY with an Application to the court. In numerous families, probates should be possible by understanding of everybody included. If so, the probate can start with the INFORMAL PROBATE process. On the off chance that the perished left a will, an Utah casual probate starts by documenting an Application for Probate in the Utah District Court in the area where the expired lived. In the event that no will exists, an Utah casual probate starts by documenting an Application for Appointment of Personal Representative. In either case, the court will choose the individual settled upon as the Personal Representative. On the off chance that a contest emerges on anything, a formal hearing will be required. Opening the probate FORMALLY with a Petition to the court. A FORMAL PROBATE procedure is required at whatever point the court needs to determine debates. On the off chance that it gives the idea that any intrigued individual will contest the arrangement of the Personal Representative or the will, the probate court will require at least one formal court hearings to determine the question. In the event that the expired left a will, an Utah formal probate starts by documenting a Petition for Probate in the Utah District Court in the area where the perished lived. In the event that no will exists, an Utah formal probate starts by recording a Petition for Appointment of Personal Representative. After the Petition is documented, the court will plan a conference to perceive what debates exist. In the event that the gatherings can’t resolve the questions themselves, the judge will choose them. On the off chance that debates exist in the opening phase of the probate, another formal hearing might be required for the judge to hear declaration, see the proof and think about lawful contentions. Stage 1 of an Utah probate closes when a Personal Representative is named and the court acknowledges the will as legitimate, if a will exists. STAGE 2 – Choices in Administering the domain: The Administration phase of an Utah probate requires the Personal Representative to accumulate data and records, make a stock of the benefits, pull out to loan bosses, pay obligations, sell resources if essential, and recognize the heirs. Overseeing the probate INFORMALLY without court hearings and choices. On the off chance that neither relatives nor banks article to activities and choices by the Personal Representative over the issues of organization of the home, the Personal Representative can continue casually without court hearings and choices from the judge. Directing the probate FORMALLY with a Petition or Motion to the court. An Utah FORMAL PROBATE procedure is required at whatever point the court needs to determine questions. In the event that a question emerges, any intrigued individual (family, heirs, or lenders) can record a Petition or Motion for a court hearing, choice or court request. Debates which can’t be settled between the members may require the judge to settle on choices and issue orders. The judge may lead on a contested issue in the wake of perusing lawful briefs from the gatherings, or the judge may plan a consultation to tune in to declaration, audit proof and think about legitimate contentions. Stage 2, the Administration phase of an Utah probate, closes when every one of the banks have been paid, the heirs have been named, and their legacies have been determined. STAGE 3 – Choices at the Closing phase of the probate: The Closing Stage of an Utah probate requires the Personal Representative to appropriate the equalization of the advantages of the bequest, in the wake of paying expenses of the probate and paying the obligations, to the heirs. The Personal Representative should likewise set up a last bookkeeping demonstrating every single monetary issue in the organization of the home. Shutting the probate INFORMALLY by documenting an end articulation. On the off chance that no questions exist over the organization of the bequest, the Personal Representative may appropriate the rest of the advantages for the heirs and document an end proclamation as gave in Utah Code area 75-3-1204. Any intrigued individual may article to the end explanation by documenting a Petition or Motion. In the event that no procedures including the individual agent are pending in the court one year after the end articulation is documented, the arrangement of the Personal Representative ends. Shutting the probate FORMALLY with a Petition to the court. An Utah FORMAL PROBATE procedure is required at whatever point the court needs to determine questions. On the off chance that a debate exists over the last bookkeeping or any of the demonstrations and choices of the Personal Representative after the organization of the bequest, the Personal Representative and some other intrigued individual (family, heirs, or loan bosses) can document a Petition for a court hearing, choice or court request. The judge may administer on a contested issue subsequent to perusing legitimate briefs from the gatherings, or the judge may plan a conference to tune in to testimony, see the proof and think about lawful contentions. In the event that the court manages and concurs with the activities of the Personal Representative and the last bookkeeping, it will issue a request endorsing the Petition and discharging the Personal Representative from every single further commitment. On the off chance that the court does not concur, it might arrange the Personal Representative to address all blunders and cure botches. Any individual who can’t help contradicting a request shutting the home may claim the choice to an Utah redrafting court. Stage 3, the Closing phase of an Utah probate, closes when the Personal Representative is discharged (released), if no interests are pending. No state necessitates that you procure a lawyer to control you through the probate procedure in the event that you’ve been named as executor in somebody’s will. This doesn’t prevent a few regions from requiring it, in any case. Before you head to the town hall with the will close by, make a fair evaluation of the home and acclimate yourself with state and district rules. In the state of Utah Probate is more mind boggling in certain states than in others, and the domain itself may hurl some notice hails that you need proficient lawful assistance. Consider reaching a lawyer if: On the off chance that you begin probate procedures, at that point find that you’re stuck between a rock and a hard place, you can procure a lawyer mid-process – it’s not very late. You ought to likewise consider contracting a bookkeeper for the domain too. You can’t approach town hall staff for assistance. Other than furnishing you with essential structures and guiding you to guidelines in regards to technique, they’re not permitted to help or do whatever could be translated as offering legitimate guidance. The judge can’t give you legitimate guidance, either, and neither can his law assistants. On the off chance that you do continue without legitimate insight, you should initially document an application or appeal with the court to open probate, alongside the will and the passing authentication. In certain states, it is possible that you or the court must distribute a notice to invested individuals that the domain is going to enter probate. The court will at that point commonly plan a meeting where the judge will pronounce that the will is legitimate – on the off chance that it is. You may need to carry the will’s observers to the consultation so they can vouch that it’s the report they saw the perished sign. The judge will approve you to go about as executor. You’ll at that point need a duty ID number for the bequest from the Internal Revenue Service – the domain can’t execute money related business under the expired’s Social Security number after his demise. You should likewise open a home financial balance, and you’ll require the duty ID number. Most states necessitate that you next set up a stock of the domain’s benefits and submit it to the court right off the bat in the probate procedure. A few states have structures accessible for this – you can check your state’s site or ask the court assistant. The structures for the most part request estimations of every advantage so you may need to organize to have some property evaluated. As leasers make claims, you’re answerable in many states for choosing in the event that they’re authentic and whether they ought to be paid or denied. On the off chance that domain or annual expenses are expected, you should set up the profits and settle the regulatory expenses from home assets. Truth be told, exceptionally huge domains must record returns; in case you’re the executor of a home worth a large number of dollars, contact a CPA to support you. Your last duty is to disseminate the perished’s outstanding property, after all obligations and assessments are paid, to the beneficiaries named in his will. Most states necessitate that you get court endorsement first. You’ll most likely need to document a last bookkeeping, clarifying all that you did for the benefit of the home, and give receipts and bank records to the exchanges. When the obligations are paid and the property is circulated, after your last bookkeeping is documented, the court will probably close the case and you’ll be soothed of your obligations. Will Probate LawyerWhen you need a Probate Lawyer call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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What Is An Investment Memorandum? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Probate A Will Without A Lawyer? first appeared on Michael Anderson. There is a very specific difference in granting forbearance and amending the terms of a loan. For example, if the maturity date of a loan comes due and the debtor has not fully repaid the loan, the lender can change the terms of the loan to extend the maturity date. By making this amendment, the lender has ensured that the loan does not enter into default and that he or she keeps the terms of the loan in place. When the lender amends the loan, the debtor must still make payments according to the terms of the original loan. When a forbearance agreement has been issued, the parties temporarily put the terms of the loan on hold. By entering into a forbearance agreement, the borrower states that they have defaulted on the terms of the loan. However, through this agreement, they agree to resume the payments on the loan after the forbearance period. In return, the lender acknowledges the default but refrains from pursuing collections during the forbearance period. In many cases, the lender will attach certain conditions to the loan and the borrower for allowing the forbearance. These may include continued interest accrual during the forbearance period, repayments at a higher interest rate when the loan resumes, or additional security for the loan. If the borrower does not resume payments on the loan at the specified date, the lender will be able to sue for breach of contract and collect the debt on the loan under the terms of the original loan agreement. Forbearance AttorneyBefore granting forbearance, there will be a complete investigation of the financial standings of the borrower. In addition to checking finances and credit ratings, the lender should conduct a search for liens, tax liens, or other judgments against the borrower to gain a complete view of their finances. In addition, a survey will be conducted to ensure that all collateral is still in place to secure the loan. The forbearance agreement will contain many legal stipulations. Loan Is in DefaultFirst, it must contain the information stating that the loan in question is in default and that the borrower admits to this default. It must also include information that the lender is in full rights to claim a summary judgement against the borrower if the loan is not repaid. This gives the lender the right to collect on the debt if the forbearance is not honored. Legal Conditions of the ForbearanceThe next thing that you must include in this document is legal conditions of the forbearance. This will state that this contract is only in effect if the borrower agrees to, and honors all of, the conditions in the forbearance agreement. This section will also include information that states what will happen if the parties do not honor the forbearance agreement. In most cases, it will state that the loan will enter into default. Moreover, it will state that full collections on the loan will begin immediately. Conditions of the Loan in Relation to SecurityThe third part of the agreement will specify any conditions of the loan in relation to security. If the loan was previously secured by property or goods, or if the forbearance requires a security deposit, the terms will be defined. The borrower must agree to all the terms and provide the necessary security before finalizing the agreement. All parties should carefully review this part of the agreement. Release of LiabilityThe final section of the agreement will give a release of liability to the lender from all other parties. This release will cover any loss or damages caused by the forbearance agreement, loan documentations, or any other actions taken during the process. This section protects the lender from any “backlash” from the borrower. What Are the Benefits of Forbearance?Forbearance has many benefits for both the borrower and the lender. Lenders get an admission of default from the borrower. This admission will stand in court as a reason to collect the debt with aggression. The borrower, if granted forbearance, gets a second chance to pay off their debt without much damage to their credit history. Forbearance is not for everybody or applies in every situation. There must be a willingness and ability for the borrower to repay the debt at a later time for this type of legal action to work. If the debtor does not foresee the ability to repay in the future, or negates the deal, the creditor has their admission of default and can aggressively collect the debt. In a forbearance agreement, the loan owner (“lender”) agrees to reduce or suspend your payments for a set amount of time. With a repayment plan, the lender temporarily increases your monthly payment by adding part of the overdue amount to your current payments so that you can get caught up on the loan. In a modification, the lender typically lowers your monthly payment and brings the loan up to date by adding any past-due amounts to the balance of your debt. How Forbearance Agreements WorkWhile a loan modification is a permanent solution to unaffordable monthly payments, a forbearance agreement provides short-term relief for borrowers. With a forbearance, the lender agrees to reduce or suspend mortgage payments for a while. During the forbearance period, the servicer (on behalf of the lender) won’t initiate a foreclosure. In exchange, the borrower must resume making the full payment at the end of the forbearance period, and typically get current on the missed payments, including principal, interest, taxes, and insurance. You can usually: A Signed Modification Permanently Changes the Loan TermsA loan modification is a permanent restructuring of the loan where one or more of the terms are changed to provide a (hopefully) more affordable payment. If you’re currently unable to afford your mortgage payment due to a change in circumstances, but you could make a modified payment going forward, this option might help you avoid a foreclosure. How the Lender Adjusts Your PaymentWith a modification, the lender might agree to do one or more of the following to lower your monthly payment: Qualify for a ModificationGenerally, to get a loan modification, you must: A Forbearance Does Not Necessarily Stop ForeclosureA forbearance agreement with the mortgage lender’s loss mitigation department usually does not take the borrower out of foreclosure. Forbearance simply causes the bank to “postpone” or “continue” the foreclosure sale until the payments are completely caught up. If the borrower does not comply with the exact terms of the forbearance agreement (a few days late, a few dollars short), the foreclosure sale takes place immediately (often within days). Forbearance agreements are essentially a way for mortgage lenders to squeeze more money out of a borrower. Due to the loose foreclosure laws, lenders often disguise a last grab at the borrowers’ money as a “workout plan” for the loan, knowing they will be foreclosing on the property anyway. Forbearance agreements are stacked against the borrower and almost always result in foreclosure. Most borrowers would be better off with just about any type of arrangement, other than a forbearance agreement. In rare cases, the lender may offer an affordable forbearance agreement, but it quite uncommon. Many of the Utah bankruptcy cases filed by this office are the result of borrowers entering into forbearance agreements with mortgage lenders without understanding the implications. Who is Eligible for a Forbearance Agreement?The lender’s goal in offering a forbearance agreement is to improve the chances of eventually receiving full payment, or at least a more significant amount than it could expect if it were to enforce the terms of the original loan documents. Generally if the business can establish that the cash flow problem is short-term and there is a substantial likelihood that timely payments will resume within an acceptable time frame or the loan be refinanced and paid in full, the lender will be more inclined to consider forbearance. On the other hand, if it appears to the lender that the company’s financial situation will only worsen and the best chance to minimize losses comes from pursuing its legal remedies immediately, a forbearance agreement is unlikely. Thus, one aspect of the request and negotiation regarding a commercial loan forbearance agreement will involve putting together a plan to demonstrate to the lender that the problem is short-term and that the company has a plan for stabilizing its finances and making good on the loan. Driving the debtor company into bankruptcy or dissolution is bad for the lender, but so is gambling on a business that is likely to deteriorate further rather than recover. Negotiating a Commercial Loan Forbearance AgreementWhen you request forbearance in connection with a commercial loan agreement, you are not asking a “yes” or “no” question. Rather, the lender’s willingness to consider forbearance opens a discussion of terms that will provide the lender with adequate protection while allowing the business room to recover. Concessions to the Borrower in a Forbearance AgreementThe goal of the forbearance agreement is to allow the borrower to stabilize business operations and regain its ability to pay debts as promised. In order to achieve that, the lender will typically agree to forbear its right to accelerate the debt and to pursue other legal remedies for a specific period of time. Depending on the specifics of the situation, the lender may require partial payment of the delinquent amount or may waive or reduce payments for a specified time period. In exchange for these concessions, the lender will typically require certain actions and commitments from the borrower, which vary depending on several factors. Mortgage Forbearance Agreements vs. Loan ModificationsWhile a mortgage forbearance agreement provides short-term relief for borrowers, a loan modification agreement is a permanent solution to unaffordable monthly payments. With a loan modification, the lender can work with the borrower to do a few things (such as reduce the interest rate, convert from a variable interest rate to a fixed interest rate or extend the length of the loan term) to reduce the borrower’s monthly payments. In order to be eligible for a loan modification, the borrower must show that he or she cannot make the current mortgage payments because of financial hardship, demonstrate that he or she can afford the new payment amount by completing a trial period and provide all required documentation to the lender. The documentation the lender requires could include a financial statement, proof of income, tax returns, bank statements, and a hardship statement. Forbearance Agreement FraudA forbearance agreement, simply put, is an agreement between the lender and borrower to skip payments for a period of time due to temporary difficult circumstances on the part of the borrower. A forbearance agreement usually results in foreclosure delay and gives the borrower a chance to get back on stable ground. After the forbearance agreement period expires, the loan will revert to its original terms. In most cases, the lender still expects to have the borrower repay the full amount borrowed. If you are unable to meet your obligations because of unexpected and temporary financial difficulties, arranging a mortgage forbearance agreement with the help of an attorney could be one option to save your home. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Foreclosure Lawyer Farmington Utah Regulations When Offering An Unpaid Internship Do You Have To Sell Your Home In Divorce? What Is A Writ Of Restitution? What Is An Investment Memorandum Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Forbearance Agreement Lawyer first appeared on Michael Anderson. An investment memorandum is a legal document that a company presents to potential investors to explain the objectives, risks, and investment terms surrounding a funding round. This includes financial statements, management biographies, company details, and many more items that help give a detailed view of the business and financial plan going forward. Offering MemorandumAn offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more. An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling unregistered securities. An Offering Memorandum is also known as a private placement memorandum. It is used as a tool to attract external investors, either specifically targeting a known group or just soliciting willing investors in general. The document enables the investor to understand in detail the investment, so as to help them assess their interest in participating in the deal. An investment banker often prepares an offering memorandum on behalf of the business owners. In investment finance, an offering memorandum is a kind of a detailed business plan that highlights information required by an investor to understand the business. It provides details on the terms of engagement, potential risks associated with the business, and a detailed description of the operations of the business. The document also often includes a subscription agreement that acts as a contract between the two parties, i.e., the investor and the issuing company. Investments formally follow these guidelines and are mostly required by securities regulators. A prospectus is similar to an offering memorandum, but the former is for publicly-traded issues while the latter is for private placements. Business growth requires an injection of capital that is obtained from investors. The offering memorandum is part of the investment process. For instance, a company may decide to increase the number of its offices, which will require a significant amount of funds. The process begins with the firm deciding how much they need for the expansion. Then, an investment banker drafts the offering memorandum, which must comply with existing procedures and securities laws and regulations. The company then chooses who to issue the document with, depending on their targeted investors. It is much like the process of doing an IPO, but an offering memorandum is aimed at a private placement investment rather than the company seeking funds going public. Understanding an Offering MemorandumAn offering memorandum, also known as a private placement memorandum (PPM), is used by business owners of privately held companies to attract a specific group of outside investors. For these select investors, an offering memorandum is a way for them to understand the investment vehicle. Offering memorandums are usually put together by an investment banker on behalf of the business owners. The banker uses the memorandum to conduct an auction among the specific group of investors to generate interest from qualified buyers. An offering memorandum, while used in investment finance, is essentially a thorough business plan. In practice, these documents are a formality used to meet the requirements of securities regulators since most sophisticated investors perform their extensive due diligence. Offering memorandums are similar to prospectuses but are for private placements, while prospectuses are for publicly traded issues. Example of an Offering MemorandumIn many cases, private equity companies want to increase their level of growth without taking on debt or going public. If, for example, a manufacturing company decides to expand the number of plants it owns, it can look to an offering memorandum as a way to finance the expansion. When this happens, the business first decides how much it wants to raise and at what price per share. In this example, the company needs $1 million to fund its growth at $30 per share. The company begins by working with an investment bank or banker to draft an offering memorandum. This memorandum complies with securities laws outlined by the Securities and Exchange Commission (SEC). After compliance is met, the document is circulated among a specific number of interested parties, usually chosen by the company itself. This is in stark contrast to an initial public offering (IPO), where anyone in the public can purchase equity in the company. The offering memorandum tells the potential investors all they need to know about the company: the terms of the investment, the nature of the business, and the potential risk of the investment. The document almost always includes a subscription agreement, which constitutes a legal contract between the issuing company and the investor. Who prepares the Offering Memorandum?When any company goes through a sale process, it hires an investment banker. The first step of the banker is to understand the company and gather as much information as possible from top management to come up with a profile the company. The banker prepares the CIM and uses it as a marketing document, which is intended to make the company look attractive as the objective is “not just to sell, but to sell for maximum value.” The reason an investment banker tries to sell a company at the maximum value is because they represent the best interest of their client (the seller), and that their commission is based on the sale price. Contents of the Offering MemorandumAn offering memorandum comprises key information on the company’s future growth strategy, upcoming opportunities in the market, strategy for achieving future projections, and details on competition in the marketplace. How the current management team plans on dealing with weaknesses, operations scalability, etc., are detailed in the document. The investment banker, financial advisors, and the like, should provide valuable information but the offering memorandum should also contain information directly from the company. Every clause should be scrutinized and vetted to ensure it’s free from errors or omissions. The document is meant to give the company an opportunity to convince targeted investors, and it should be flawless for this purpose. Offering Memorandum vs. Summary ProspectusWhile an offering memorandum is used in a private placement, a summary prospectus is the disclosure document provided to investors by mutual fund companies before or at the time of sale to the public. This written document is an abridged version of the final prospectus that allows investors to see pertinent information regarding the fund’s investment objectives and goals, sales charges and expense ratio, focused investment strategy, and data on the fund’s management team. Relevant tax information and broker compensation are also included in the disclosure document. A summary prospectus provides investors the information they need from the final prospectus quickly and in plain English. Importance of Issuing an Offering MemorandumThe document is legally binding, and its importance goes beyond being a necessary document in the process of investment for both sellers and investors. The document protocol helps the investor understand the opportunities being presented in the investment, imminent risks, potential returns, the operations involved, and the general capital structure. The offering memorandum also provides protection for the investor and for issuers of securities. The issuer is required to follow to the letter all regulations outlined by the SEC (Securities and Exchange Commission). The SEC promotes fairness in the investment industry by shielding investors in the securities industry from falsified information and by aiding the investor in making informed decisions in the process of committing huge amounts of funds. The offering memorandum also presents a professional touch to the seller. Investors cannot commit their money to businesses that don’t look organized or professional in their area of operation. Presenting a memorandum shows seriousness and professionalism in the business. Offering Memorandum vs ProspectusA prospectus is used for public markets while an offering memorandum is used for private markets. The offering memorandum document can also be referred to as an “offering circular” if it requires registration with the stock exchange commission. The offering memorandum and the prospectus share many attributes, ranging from the types of disclosures and amounts required to terms and conditions. Both documents describe the terms of the offer, such as the minimum amount to invest and the qualifications of an investor. The investor is also briefed on imminent risks such as tax issues, vulnerabilities, transferability issues, and potential returns. Both documents are basically a detailed business plan, with in-depth information on management structure, strengths and weaknesses, capital structure, asset values, share values, amount of shares available, and financial projections. What is a Private Placement?As the name suggests, a private placement is a private alternative to issuing, or selling, a publicly offered security as a means for raising capital. In a private placement, both the offering and sale of debt or equity securities is made between a business, or issuer, and a select number of investors. There may be as few as one investor for any issue. The three most important features that would classify a securities issue as a private placement are: A private placement issuance is a way for institutional investors to lend to companies in a similar fashion as banks, with a buy-and-hold approach, and with no required trading or public disclosures. Historically, insurance companies refer to investments as purchasing notes, while banks make loans. Private Placement SecuritiesIn a private placement, the shares of stock or debt instrument are considered securities under both federal and state securities laws. Consequently, any transaction involving the shares or debt must be registered under such securities laws or be exempt from registration. Typically, the offeror is an emerging growth company that has few capital alternatives, although more mature companies tend to be more successful in this process. Investment Memorandum LawyerWhen you need legal help with an Investment Memorandum, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Foreclosure Lawyer Farmington Utah Car Accident Free Consultation Getting Money From Family To Start A Business Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post What Is An Investment Memorandum? first appeared on Michael Anderson. A Notice of Trustee’s Sale informs homeowners and mortgage borrowers of record that their home will be sold at a trustee’s sale on a specific date and at a specific location. The actual sale typically completes a non-judicial foreclosure in states allowing this type of foreclosure process. The highest bidder at a trustee’s sale receives title to the property being sold; if no one bids, title to the property reverts to the foreclosing mortgage lender. Foreclosure Process Determined by State LawHome-loan foreclosure procedures are governed by state law. In general, there are two types of foreclosures. Judicial foreclosures fall under court jurisdiction, while non-judicial foreclosures are overseen by third-party entities including title or escrow companies appointed as trustees. States may allow either or both types of foreclosure proceedings. Mortgage lenders typically foreclose mortgage loans based on non-payment or other default of a mortgage loan according to terms outlined in a recorded document, such as a Mortgage or Deed of Trust. The Role of a Foreclosure TrusteeIn non-judicial foreclosures, a third-party entity known as a trustee conducts the foreclosure based on documentation and information submitted by the mortgage lender. The trustee files a Notice of Default, which is a document that establishes the mortgage default and names parties who took out the home loan being foreclosed. This notice is recorded with the county where the property is located and typically specifies a time limit for mortgage borrowers or other interested parties to respond or reinstate the mortgage by paying past-due payments, late fees and trustee fees. The time frame between filing a Notice of Default and a Notice of Trustee’s Sale varies between 60 days to several months depending on state laws and the volume of foreclosures being processed by the trustee. Notice of Trustee’s SaleIf the mortgage borrowers or current homeowners don’t cure the default as outlined in the Notice of Default, the foreclosure trustee will prepare and record a Notice of Trustee’s Sale. This document establishes where and when the property being foreclosed will be sold and provides the minimum opening bid for the property. The Notice of Trustee’s Sale is published in a newspaper local to the property being foreclosed, and it also is mailed to the borrowers of record and posted on the subject property. Tenants of property posted with a Notice of Trustee’s Sale must be prepared to vacate the property prior to the date of the trustee’s sale because they may be subject to eviction. Foreclosure and TenantsTenants of a home being sold through a trustee’s sale may wish to obtain legal advice or contact the trustee for more information about their rights and responsibilities. When the trustee’s sale is completed, title to the property typically is transferred from the homeowners (the tenants’ landlord) to either the foreclosing lender or the winning bidder at the trustee’s sale. Tenants can attempt to negotiate a rental agreement with the property’s new owner, but success can’t be guaranteed. How Do Trustee’s Sales Work?A trustee’s sale is one option that a lender has if you get behind on your mortgage and default on your payments. Foreclosure is usually the second option. The two differ only slightly in what they entail, as the trustee’s sale is often chosen because of the potential for the lender to recover more of the money that has been lost from the defaulted loan. PresaleA trustee’s sale is usually called at least 90 days before the sale is actually held. This occurs so that the person who is in default on his home loan still has time to get his financial situation straightened out to recover any potentially lost assets. When the lender decides to use a trustee’s sale, a notice is generally filed with the county recorder’s office and the borrower is presented with a notice of sale indicating when the sale is going to take place. Investors go to trustee’s sales with the idea of buying property for less than market value so that they can turn around and resell it at a profit. SaleA trustee’s sale is much like an auction, except the property being sold is property that has been seized as a result of someone’s failure to pay her bills. The property is auctioned off along with any remaining possessions that have been seized. These are either sold individually or in lots. Generally, the buyer has to purchase the property sight unseen and is taking a significant risk in doing so. However, the possibility of buying real property or other items at significantly less-than-market value is enticing enough for many investors. StipulationsSome stipulations generally exist that you must qualify for before you can participate in a trustee’s sale. You cannot simply show up and start bidding without registering for the sale first. You also have to show that you have sufficient funds to bid on the items you intend to win in the auction. This must typically be in the form of cash or a cashier’s check. This is one reason the lender may choose the trustee’s sale in the first place — it will receive immediate cash payment for the property being auctioned off. BiddingOnce bidding begins for the property, the person who has lost the property will be subject to the same bidding rules as everyone else involved in the sale. Bidding can begin as low as one penny over the asking price by the lender. The winning bidder can generally expect to pay some fees if he has the winning bid. This fee is somewhere around 1 percent but can vary depending upon the state in which the auction is held. How to Postpone a Trustee’s AuctionWhen discussing real estate, auctions are referred to as a “trustee’s auction” or “trustee’s sale date.” To postpone this sort or auction, the borrower must first be in default—meaning the borrower is not making mortgage payments. Borrowers who stop making mortgage payments will sooner or later cause the bank to foreclose. How that foreclosure is handled depends on state law, but more than half of the states in the U.S. are trust deed states, and the trustee handles foreclosures. Redeem the MortgageAlthough people refer to reinstating a mortgage and redeeming a mortgage interchangeably, they are different. To redeem a mortgage is to pay off the mortgage; reinstating requires bringing the mortgage current. During the final days of a non-judicial foreclosure process, a lender is not required to accept a reinstatement but must allow redemption. Apply for a Loan ModificationLenders are also not required to postpone an auction in exchange for a loan modification, but most banks will try to work out a temporary repayment schedule. This does not mean the bank will not send the home to auction, so be careful; borrowers may want to ask the bank for a written promise not to move forward with the auction. If accepted, banks will grant a temporary loan modification, and after three to six months, tell the borrower they are filing foreclosure because the borrower does not qualify for a permanent loan modification. File for BankruptcyA bankruptcy filing does not permanently stop an auction, but it could postpone the auction for a while. When a debtor files for bankruptcy, the court issues an order known as an automatic stay that stops attempts from creditors to collect money—including postponing an auction.6 However, the lender can then file a motion to lift the automatic stay, especially if the Notice of Default was already filed. File a Temporary Restraining OrderMost people associate a temporary restraining order with domestic abuse, but petitioning the court for protection from abuse can also include a request to postpone an auction. Borrowers will need to hire a lawyer to file a temporary restraining order, and that lawyer might need to find a reason based on fraud or some wrongdoing on the lender’s part. Even if the lawyer is successful and wins the argument, the restraining order is not permanent. Attempt to Make a Short SaleTelling a lender that the borrower is attempting to make a short sale is generally not enough; the borrower must submit an offer to the bank from a qualified buyer. The real estate agent or lawyer handling the negotiation for the borrower then calls the bank’s negotiator and requests a postponement of the auction. Often, banks will not consider a request for a postponement until the auction is a few days away. In Utah, and many other states, a notice of trustee sale is the final written notice that a lender has scheduled a date to sell a home in a foreclosure auction. When a borrower receives a notice of default or a notice of trustee sale, there is time remaining to take steps to stop the foreclosure process, but quick and decisive legal action must be taken to save a home from foreclosure. In most states, the lender has the right to issue the notice of foreclosure sale and move forward with a mortgage foreclosure sale when a borrower stops making their mortgage payments. The foreclosure process is formally started when the notice of default is sent to the home after a borrower misses 3 or more monthly mortgage payments. Any failure to answer the notice by either contacting the lender or reinstating the mortgage will likely to lead to the notice of trustee sale being sent.
Initiation of a Non-judicial ForeclosureWhen you take out a loan in a state that allows non-judicial foreclosures, you will likely sign a deed of trust or a mortgage, which contains a power of sale clause. This clause gives the trustee a third party that manages the non-judicial foreclosure process in certain states the right to sell the home though an out-of-court process if you stop making payments. Notice of DefaultSometimes, depending on state law, a non-judicial foreclosure process begins when the trustee records a Notice of Default (NOD) at the county recorder’s office. Notice of SaleThe Notice of Sale (NOS) generally states: Differences from State to StateWhile you might get both a Notice of Default and a Notice of Sale as part of the non-judicial foreclosure process where you live, foreclosure procedures and the documents you will receive do vary widely from state to state. You might get: Call Ascent Law LLCIf you’re facing a foreclosure and want to learn the specific procedures in your state, as well as about your rights during the process and whether you have any potential defenses to the foreclosure, consider talking to an attorney. Notice of Trustee Sale AttorneyWhen you need an Attorney for a Notice of Trustee Sale, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Hotel Owner’s Liability For Meth Foreclosure Lawyer Farmington Utah Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Notice Of Trustee Sale first appeared on Michael Anderson. Farmington is a city in Davis County, Utah, United States. It is part of the Ogden–Clearfield, Utah Metropolitan Statistical Area. The population was 18,275 at the 2010 census and was estimated at 24,514 in 2018. An amusement park, called Lagoon Amusement Park, is located in Farmington. The city was ranked 12th on Money magazine’s “Best Places to Live” index in 2011. Farmington is a suburb of Salt Lake City with a population of 23,208. Farmington is in Davis County and is one of the best places to live in Utah. Living in Farmington offers residents a sparse suburban feel and most residents own their homes. In Farmington there are a lot of parks. Many families and young professionals live in Farmington and residents tend to be conservative. The public schools in Farmington are highly rated. How Much Will a Foreclosure Lawyer Charge?Most foreclosure attorneys structure their fee agreements by charging an hourly rate, collecting a flat fee, or charging a monthly rate. The amount you’ll pay in total could range from several hundred dollars to several thousand dollars. Exactly how much you’ll have to pay varies based on a number of factors, including the attorney’s level of experience and how much other attorneys in the area charge. Deal With the Foreclosure Without a LawyerAt Ascent Law, we strongly discourage you to face a foreclosure without having a lawyer on your side. The truth is, you should speak with a foreclosure attorney to discuss the specifics of your case if you don’t do that, you are not making a wise choice. However, it is your choice. So, if you don’t want to fight the foreclosure, you can probably deal with it on your own. You should educate yourself about what steps are involved, how long a foreclosure typically takes in your state, and exactly when you’ll have to move out of your home. You can apply for a mortgage modification during foreclosure without an attorney. You probably don’t need an attorney to help you apply for a mortgage modification. A modification is a permanent change to the loan terms, such as an interest rate reduction, to make the monthly payments more affordable. To get the ball rolling, call your loan servicer and let it know you would like to apply for a modification. The servicer will tell you exactly what you need to do to submit an application Why you might want to apply for a loan modificationIf you apply for a modification, you might be able to work out an agreement that will allow you to keep the home. Even if you can’t work out a deal, applying for a modification will you buy you some time to stay in the home before the lender completes the foreclosure. Generally, under federal law (and some state laws), a foreclosure must stop while the servicer evaluates your application. Hiring a Foreclosure AttorneyYou should seriously consider hiring a foreclosure attorney if you think you have a valid defense to the foreclosure, like the servicer didn’t follow the law or made a serious error with your account. In most cases, you’ll have to raise the defense in court, either by filing your own lawsuit (if the foreclosure is non-judicial) or responding to the lender’s lawsuit (if the foreclosure is judicial), which can be complicated. This means that it is usually better to hire an attorney than to go it alone if you want to successfully save your home. If you can’t afford to hire an attorney—even for just one meeting—then you could try to find a pro bono (free) attorney. What is a Foreclosure Property, and Should You Buy One?Foreclosures occur due to nonpayment, and though the process and timelines vary by state, the end result is the same: The mortgage borrower loses his or her home. Once the lender takes control of the property, it can sell it off to make up for financial losses on the home. Investors and consumers can purchase these homes—often at auctions or directly from the bank or government agency that owns them. Why Foreclosures HappenForeclosures, at their most basic, occur because the homeowner has failed to make agreed-upon payments with their mortgage lender. The reasons behind this nonpayment can vary. Sometimes, job or income loss is the culprit; for other borrowers, medical bills or credit card debt made it impossible to stay afloat. In some cases, it may be due to bankruptcy, divorce, disability, or other personal or financial issues. Cons How to Negotiate With SellersWhen buying a foreclosure, you’re often purchasing from a large financial institution like a bank or private lender. Because of this, offers usually require multiple approvals and may take longer to move through the pipeline. You can generally expect negotiations to be slower and more difficult than they would be with a traditional seller. Additionally, banks are looking to recoup as much of their losses as possible. As such, they’ll usually present a counteroffer during negotiation which, again, must be approved by several people. When purchasing in a traditional home sale, you can include a home inspection contingency and negotiate on repairs and pricing based on the inspection’s findings. When buying a foreclosed property at auction, individual buyer contingencies (and thus the negotiations based on them) are not allowed. Your best bet for negotiating a foreclosure purchase is to engage a real estate agent—ideally one with foreclosure experience. He or she will be able to help you craft a competitive offer based on comparable sales and market conditions. Foreclosed properties are attractive to buyers because of lower selling prices. Acquisition of a foreclosed property requires awareness of the buying process and considerations that differ from a new development. Nowadays, in this age of rising prices and inflation, prospective homeowners must consider other options other than new developments when scoping for purchases. One of these options is foreclosed properties, which are properties repossessed by either lenders or the local government. Foreclosure happens when the property’s titular owner is unable to keep up the periodic repayments to a lender or the real property tax owed to the local government. There are two ways to acquire foreclosed properties: Things to Consider When Buying Foreclosed Properties Foreclosure AttorneyWhen you need a Foreclosure Lawyer in Farmington Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Hotel Owner’s Liability For Meth Can I File Taxes As Single If Married But Separated? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Foreclosure Lawyer Farmington Utah first appeared on Michael Anderson. |