Legal Issues
Home Affordable Foreclosure Alternatives Program (“HAFA”)
There may be some good news for people at risk for foreclosure. (Note, I said “may be”.) The Obama administration has created a program to speed up short sales, deeds-in-lieu transactions, and other loan modification options to help distressed homeowners. On November 30, 2009 the administration released the Home Affordable Foreclosure Alternatives Program, (“HAFA”) which [...]
Introducing the New RESPA Rule
The U.S. Department of Housing and Urban Development amended its RESPA (“Real Estate Settlement Procedures Act”) Rule back in November of 2008. Since that time, there have been numerous attempts to derail implementation of the new rule, including legal challenges. However, those efforts have failed, and implementation of the new RESPA rule will occur as [...]
Nightshirts, Bikinis, and Using a General Power of Attorney for Closing
You or your client has a document entitled “general durable power of attorney.” Will it be sufficient for the closing? First, let’s discuss exactly what a general durable power of attorney is and what it’s not. Powers of attorney are documents giving attorneys-in-fact or agents power to act on behalf of the principal. By [...]
Like Getting Smacked with a Mallet
Transferring property to your children to avoid probate causes a multitude of legal problems. See my recent post on Bankruptcy Law Network for a brief discussion on why this is such a bad idea. http://www.bankruptcylawnetwork.com/2009/08/10/transferring-property-to-avoid-probate-like-getting-smacked-in-the-head/
Can’t Get No Satisfaction (Part Two)
In my last post, “Can’t Get No Satisfaction (Part One),” we examined the legal effect of an unsatisfied mortgage. This post will address one commonly used solution to an unsatisfied mortgage, as well as the penalties a lender faces under South Carolina law for failure to satisfy a mortgage once full payment has been made. [...]
Can’t Get No Satisfaction (Part One)
You’re headed toward the finish line. The goal: closing. You’ve taken all the precautions, done all the leg work. Maybe it’s your first closing, so you’ve got your helmet on and your training wheels attached. You’re moving right along. Then it happens: there’s a missing mortgage satisfaction. A Big Fat Title Defect. I confess that [...]
Closing Attorney Does Not Represent Lender
Today, the South Carolina Ethics Committee issued Ethics Advisory Opinion 09-07. The Committee addressed the issue of whether, in a routine residential closing, the closing attorney has an attorney-client relationship with the lender. The Committee said the attorney does not act as an attorney for the lender unless the lender is relying on the closing attorney for more [...]
But I Paid the Rent!: Protecting Tenants at Foreclosure Act of 2009
There is good news for any tenant facing eviction after foreclosure. The Protecting Tenants at Foreclosure Act of 2009, which became law on May 20, guarantees almost all tenants at least 90 days after receiving notice of foreclosure before they can be evicted from their homes. This applies even to month-to-month [...]
Insurable Title and Marketable Title
Every few months I get a call from a realtor or a client asking me to explain the difference between “marketable title” and “insurable title.” Usually, this comes up in connection with some particular title issue that has either been disclosed by the seller or that our office has found during our title search. “Marketable [...]
HUD Mortgagee Letter 2009-15 REINSTATED!!
Let the whiplash continue! You’ll recall that HUD Mortgagee Letter 2009-15 was issued earlier this month and then repealed. It’s now been reinstated. The policy allows the home buyer to use the $8,000 tax credit as collateral for a loan used for closing costs, pre-paids, and down payment. To secure repayment of the amount advanced, the buyer would [...]
