CALCULATING CAPITAL GAIN
"Analyze the Benefits of an Exchange before You Sell"
1. CALCULATE NET ADJUSTED BASIS Original Purchase Price __________
+ Improvements __________
- Depreciation __________
= NET ADJUSTED BASIS __________
2. CALCULATE CAPITAL GAIN Sales Price __________
- Net Adjusted Basis __________
- Cost of Sale __________
= CAPITAL GAIN __________
3. CALCULATE CAPITAL GAIN TAX DUE Recaptured Deprection (25% ) __________
+ Federal Capital Gain (15%) __________
+ State Tax (when applicable) __________
= TOTAL TAX DUE __________
4. ANALYZE PURCHASE-NO EXCHANGE Sales Price __________
- Cost of Sale __________
- Loan Balances __________
= GROSS EQUITY __________
- Capital Gain Taxes Due __________
= NET EQUITY __________
Net Equity X 4 = __________
5. ANALYZE PURCHASE-EXCHANGE Capital Gain Taxes Due _____0____
Gross Equity = Net Equity __________
Gross Equity x 4 = __________
Sunday, September 19, 2010
Monday, September 6, 2010
How to have United States documents recognized in the Philippines
I found this on the Philippine Embassy website:
If you are going to use in the Philippines any documents that are executed, signed or issued in the United States, these documents must bear a consular notarization or authentication so that they will be accorded legal effect in the Philippines.
Examples of these documents are Special Powers of Attorney, General Powers of Attorney, Affidavits, Deeds, Contracts, Assignments, Letters of Patent, Articles of Incorporation, Certificates of Birth, Marriage or Death and other official documents issued by U.S. authorities within the Consulate's jurisdiction.
It is important to note that the Philippine Consulate General in New York only performs consular notarization or authentication for documents that are issued or executed within Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. The Consulate does not notarize or authenticate documents that are executed or issued in other States or Counties. Also, the Consulate does not perform notarial services for documents that are intended to be presented or submitted to non-Philippine government or private entities, such as Affidavits of Support for U.S. immigration purposes and other documents of similar nature.
All documents presented for consular notarization or authentication must comply with the procedures and requirements set forth below to avoid unnecessary delay in the notarization/authentication process.
AUTHENTICATION
The authentication of a document is made when the party or parties executing a legal document could not appear in person before a Consular officer at the Consulate.
Under this procedure, the person who is executing the document must ensure that the said document(s) is sworn to before a local Notary Public. The duly-notarized document must thereafter be submitted to the local County Clerk of Court or the Secretary of State in the State where the applicant resides. The local County Clerk or the Secretary of State will issue a Certification attesting to the official authority of the Notary Public to perform notarial functions.
After the local County Clerk or the Secretary of State shall have issued a Certification, the document should then be forwarded to the Consulate for authentication.
The Consulate also authenticates official documents issued by government offices of the U.S. Government, such as Certificates of Birth, Marriage, Death, that are intended to be submitted to government offices in the Philippines.
Requirements:
• The original copy of each document must be presented. Each original copy must be accompanied by one (1) photocopy for the Consulate's records.
• The fee each set of document is $25.00 in cash, cashier's check or postal money order made payable to the Philippine Consulate General. Personal checks, personal money orders, ATMs or credit cards are not accepted as modes of payment. Do not send payments in cash if applying by mail.
• If filed in person, documents received before 3:00 pm are normally released within the same day.
• If filed by mail, in addition to the above documents, include a self-addressed pre-paid stamped envelope (preferably PRIORITY MAIL with TRACKING NUMBER) in your packet destined for the Consulate.
• The processing time normally takes three (3) working days from the date the completely accomplished packet is received by the Consulate. Only applications compliant with the requirements and procedures listed above can be accepted for processing.
• If you have not received your processed document/s two (2) weeks from mailing your application to the Consulate General within the United States, please email us at legal@pcgny.net with the following subject line: Subject: (Insert Name of Applicant) – Authentication Sent on (Insert Date of Mailing of Application)
Consulate is NOT RESPONSIBLE for delay or loss in mail or any other uncontrollable circumstances surrounding acknowledgment or authentication of your documents.
LEGALIZATION/NOTARIZATION BY ACKNOWLEDGEMENT, JURAT OR CERTIFICATION
When the individual executing the document appears in person before a Consular officer at the Consulate, the document will be notarized by the Consular Officer in the form of an Acknowledgment, Jurat or Certification, as the case may be. The Consular officer in this case performs the functions of a Notary Public. Hence, individuals personally appearing before a Consular officer are no longer required to have their documents notarized by a Notary Public before submitting the same for notarization.
If you are going to use in the Philippines any documents that are executed, signed or issued in the United States, these documents must bear a consular notarization or authentication so that they will be accorded legal effect in the Philippines.
Examples of these documents are Special Powers of Attorney, General Powers of Attorney, Affidavits, Deeds, Contracts, Assignments, Letters of Patent, Articles of Incorporation, Certificates of Birth, Marriage or Death and other official documents issued by U.S. authorities within the Consulate's jurisdiction.
It is important to note that the Philippine Consulate General in New York only performs consular notarization or authentication for documents that are issued or executed within Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. The Consulate does not notarize or authenticate documents that are executed or issued in other States or Counties. Also, the Consulate does not perform notarial services for documents that are intended to be presented or submitted to non-Philippine government or private entities, such as Affidavits of Support for U.S. immigration purposes and other documents of similar nature.
All documents presented for consular notarization or authentication must comply with the procedures and requirements set forth below to avoid unnecessary delay in the notarization/authentication process.
AUTHENTICATION
The authentication of a document is made when the party or parties executing a legal document could not appear in person before a Consular officer at the Consulate.
Under this procedure, the person who is executing the document must ensure that the said document(s) is sworn to before a local Notary Public. The duly-notarized document must thereafter be submitted to the local County Clerk of Court or the Secretary of State in the State where the applicant resides. The local County Clerk or the Secretary of State will issue a Certification attesting to the official authority of the Notary Public to perform notarial functions.
After the local County Clerk or the Secretary of State shall have issued a Certification, the document should then be forwarded to the Consulate for authentication.
The Consulate also authenticates official documents issued by government offices of the U.S. Government, such as Certificates of Birth, Marriage, Death, that are intended to be submitted to government offices in the Philippines.
Requirements:
• The original copy of each document must be presented. Each original copy must be accompanied by one (1) photocopy for the Consulate's records.
• The fee each set of document is $25.00 in cash, cashier's check or postal money order made payable to the Philippine Consulate General. Personal checks, personal money orders, ATMs or credit cards are not accepted as modes of payment. Do not send payments in cash if applying by mail.
• If filed in person, documents received before 3:00 pm are normally released within the same day.
• If filed by mail, in addition to the above documents, include a self-addressed pre-paid stamped envelope (preferably PRIORITY MAIL with TRACKING NUMBER) in your packet destined for the Consulate.
• The processing time normally takes three (3) working days from the date the completely accomplished packet is received by the Consulate. Only applications compliant with the requirements and procedures listed above can be accepted for processing.
• If you have not received your processed document/s two (2) weeks from mailing your application to the Consulate General within the United States, please email us at legal@pcgny.net with the following subject line: Subject: (Insert Name of Applicant) – Authentication Sent on (Insert Date of Mailing of Application)
Consulate is NOT RESPONSIBLE for delay or loss in mail or any other uncontrollable circumstances surrounding acknowledgment or authentication of your documents.
LEGALIZATION/NOTARIZATION BY ACKNOWLEDGEMENT, JURAT OR CERTIFICATION
When the individual executing the document appears in person before a Consular officer at the Consulate, the document will be notarized by the Consular Officer in the form of an Acknowledgment, Jurat or Certification, as the case may be. The Consular officer in this case performs the functions of a Notary Public. Hence, individuals personally appearing before a Consular officer are no longer required to have their documents notarized by a Notary Public before submitting the same for notarization.
Monday, July 26, 2010
Five Tips to protect Your Child with Special Needs
Protecting a child with special needs may lead families to make common mistakes. Here are a few examples:
1. Custodial Accounts. Commonly, there are custodial accounts in the name of a child with special needs. Such an account, however, will affect the child’s availability for government assistance. Custodial accounts are often established long before the child’s special needs are recognized. If the account has an excess of $2,000.00, parents must deplete any such accounts for the care of their child to qualify for Medicaid assistance or allocate the assets to a pooled trust or first party special needs trust. If parents choose to provide assets to or for the benefit of that special needs child, a special needs trust may be established by parents or other family members and gifts can be made directly to this trust account.
2. 529 Plan. There also may be a 529 Plan in the name of a special needs child. This account in the child’s name may affect the child’s ability to receive government assistance. The 529 plan is considered an available asset of the child’s when determining his or her eligibility following the death of the individual who established the plan for such child. The best solution would be to change the designated beneficiary under the 529 Plan to name another child, if that is an option.
3. Retirement Plan and Insurance Policy Beneficiaries. Often times, parents may have worked to develop a special needs trust to which their estate plan is tied, however they forget one critical issue. Life insurance policies and retirement plan accounts pay to designated beneficiaries and do not pass under an individual’s Will. It is vital that parents tie these assets with the special needs trust. If a life insurance policy or retirement plan account are paid directly to a special needs child, the receipt of the assets will affect the child’s ability to receive government assistance.
4. Extended Family conference. Although talking with extended family members eager to benefit a special needs child may be awkward and difficult, the discussion is important. Well intentioned grandparents may allocate a portion of their estate to the special needs grandchild to make sure there are monies available to benefit their special needs grandchild and while intentions are good, the receipt of these monies could affect the grandchild’s ability to receive government benefits. Alternatively, a grandparent’s Will could leave assets to his or her children and if a child predeceases him or her, to the deceased Child’s issue (which could include a special needs grandchild). A bequest by grandparents to a special needs grandchild should be made to a special needs trust. If the parents of a special needs child feel there are family members who might make gifts or bequests to his or her special needs child, the parents should discuss with family members this issue to make sure that they understand that to the extent that they do want to leave assets to a special needs child, the assets should be left to the special needs trust created for the benefit of that child.
5. Use a Specialist. It is important that parents use an attorney who specializes in special needs planning instead of a general practitioner since there are specific issues which must be incorporated in a special needs plan.
1. Custodial Accounts. Commonly, there are custodial accounts in the name of a child with special needs. Such an account, however, will affect the child’s availability for government assistance. Custodial accounts are often established long before the child’s special needs are recognized. If the account has an excess of $2,000.00, parents must deplete any such accounts for the care of their child to qualify for Medicaid assistance or allocate the assets to a pooled trust or first party special needs trust. If parents choose to provide assets to or for the benefit of that special needs child, a special needs trust may be established by parents or other family members and gifts can be made directly to this trust account.
2. 529 Plan. There also may be a 529 Plan in the name of a special needs child. This account in the child’s name may affect the child’s ability to receive government assistance. The 529 plan is considered an available asset of the child’s when determining his or her eligibility following the death of the individual who established the plan for such child. The best solution would be to change the designated beneficiary under the 529 Plan to name another child, if that is an option.
3. Retirement Plan and Insurance Policy Beneficiaries. Often times, parents may have worked to develop a special needs trust to which their estate plan is tied, however they forget one critical issue. Life insurance policies and retirement plan accounts pay to designated beneficiaries and do not pass under an individual’s Will. It is vital that parents tie these assets with the special needs trust. If a life insurance policy or retirement plan account are paid directly to a special needs child, the receipt of the assets will affect the child’s ability to receive government assistance.
4. Extended Family conference. Although talking with extended family members eager to benefit a special needs child may be awkward and difficult, the discussion is important. Well intentioned grandparents may allocate a portion of their estate to the special needs grandchild to make sure there are monies available to benefit their special needs grandchild and while intentions are good, the receipt of these monies could affect the grandchild’s ability to receive government benefits. Alternatively, a grandparent’s Will could leave assets to his or her children and if a child predeceases him or her, to the deceased Child’s issue (which could include a special needs grandchild). A bequest by grandparents to a special needs grandchild should be made to a special needs trust. If the parents of a special needs child feel there are family members who might make gifts or bequests to his or her special needs child, the parents should discuss with family members this issue to make sure that they understand that to the extent that they do want to leave assets to a special needs child, the assets should be left to the special needs trust created for the benefit of that child.
5. Use a Specialist. It is important that parents use an attorney who specializes in special needs planning instead of a general practitioner since there are specific issues which must be incorporated in a special needs plan.
Sunday, July 18, 2010
NEW JERSEY SECURITY DEPOSITS LIMITS
The most a landlord can collect as a security deposit is one and one-half times the monthly rent. A landlord may request an increase in your security deposit if the rent is raised. This is limited to 10% of the current deposit amount.
EXAMPLE: If the monthly rent is: $1,000, the landlord may ask for a $1,500 security deposit.
Ask for a receipt when you pay the security deposit. The receipt should include the date, the landlord's signature, and the amount of the security deposit paid. The receipt should show that this money is for a security deposit. Make sure the lease states that you have paid a security deposit and includes the amount of the deposit. KEEP ALL YOUR PAPERWORK. It should be dated and signed.
SECURITY DEPOSIT NOTICE
Under the Rent Security Deposit Act the landlord has to put your security deposit in a separate bank account that pays interest. The landlord must tell you in writing the name and address of the bank where the deposit is being kept, the amount of the deposit, the type of account, and the current interest rate for that account. NOTE: The Landlord may put this directly in the lease.
The security deposit law says that this notice has to be given to the tenant in writing within 30 days after the tenant gives the deposit to the landlord. The law says that the landlord must also give the notice not just within 30 days of getting it from the tenant, but each year at the time the landlord pays the interest to the tenant.
A new landlord must also give the notice within 30 days of buying the property. The notice must be given to the tenant within 30 days after the landlord has moved the deposit from one bank to another, or from one bank account to another (unless the change in the bank or account takes place less than two months before the annual interest payment)
Your security deposit as rent : The law also says that if the landlord does not put the security money in a proper bank account, or does not give a proper written notice to the tenant every time the law provides for, then the tenant can give a written notice to the landlord telling the landlord to use the whole deposit interest per year to pay the tenant's rent.
All notices should be sent to the landlord by certified mail, return receipt requested, and you should keep a copy.
The money can be used to pay future rent or any back rent the tenant owes. Once a tenant legally tells the landlord to use the security deposit as rent, the landlord can't ask the tenant for another deposit as long as the tenant lives in the apartment or house.
Note: There are two exceptions to the rights described in the paragraph above.
• If a landlord does not obey the law that says he or she must pay the interest on the security deposit every year (or if the landlord does not use the interest to pay part of the tenant’s rent), or
• If the landlord does not give a notice about the deposit to the tenant every year, then
the tenant can use the deposit to pay past or future rent due.
But before the tenant can do this, the tenant must give or send the landlord a letter giving the landlord 30 days to pay the interest or give the annual notice.
There are two other important points about the notice of security deposit:
• Landlords will often put the name and address of the bank where your security is deposited, along with the other information required by law, right in the lease. This is sufficient notice under the law.
• Even if the landlord sends you the notice within 30 days, the landlord still violates the law if the notice is not true. If you receive the notice, call the bank to find out if the money has been deposited. If the money was not deposited, you can tell the landlord in writing to use the security deposit to pay your rent just the same as if the landlord had not sent you a notice at all.
Interest on your New Jersey Security deposit
The Rent Security Deposit Act requires landlords who rent 10 or more apartments to place tenants' security deposits in either an insured money market fund or a federally insured bank account. The account must pay a rate of interest set at least quarterly and equal to the average rate of interest paid by the bank on money market accounts.
EXAMPLE: If the monthly rent is: $1,000, the landlord may ask for a $1,500 security deposit.
Ask for a receipt when you pay the security deposit. The receipt should include the date, the landlord's signature, and the amount of the security deposit paid. The receipt should show that this money is for a security deposit. Make sure the lease states that you have paid a security deposit and includes the amount of the deposit. KEEP ALL YOUR PAPERWORK. It should be dated and signed.
SECURITY DEPOSIT NOTICE
Under the Rent Security Deposit Act the landlord has to put your security deposit in a separate bank account that pays interest. The landlord must tell you in writing the name and address of the bank where the deposit is being kept, the amount of the deposit, the type of account, and the current interest rate for that account. NOTE: The Landlord may put this directly in the lease.
The security deposit law says that this notice has to be given to the tenant in writing within 30 days after the tenant gives the deposit to the landlord. The law says that the landlord must also give the notice not just within 30 days of getting it from the tenant, but each year at the time the landlord pays the interest to the tenant.
A new landlord must also give the notice within 30 days of buying the property. The notice must be given to the tenant within 30 days after the landlord has moved the deposit from one bank to another, or from one bank account to another (unless the change in the bank or account takes place less than two months before the annual interest payment)
Your security deposit as rent : The law also says that if the landlord does not put the security money in a proper bank account, or does not give a proper written notice to the tenant every time the law provides for, then the tenant can give a written notice to the landlord telling the landlord to use the whole deposit interest per year to pay the tenant's rent.
All notices should be sent to the landlord by certified mail, return receipt requested, and you should keep a copy.
The money can be used to pay future rent or any back rent the tenant owes. Once a tenant legally tells the landlord to use the security deposit as rent, the landlord can't ask the tenant for another deposit as long as the tenant lives in the apartment or house.
Note: There are two exceptions to the rights described in the paragraph above.
• If a landlord does not obey the law that says he or she must pay the interest on the security deposit every year (or if the landlord does not use the interest to pay part of the tenant’s rent), or
• If the landlord does not give a notice about the deposit to the tenant every year, then
the tenant can use the deposit to pay past or future rent due.
But before the tenant can do this, the tenant must give or send the landlord a letter giving the landlord 30 days to pay the interest or give the annual notice.
There are two other important points about the notice of security deposit:
• Landlords will often put the name and address of the bank where your security is deposited, along with the other information required by law, right in the lease. This is sufficient notice under the law.
• Even if the landlord sends you the notice within 30 days, the landlord still violates the law if the notice is not true. If you receive the notice, call the bank to find out if the money has been deposited. If the money was not deposited, you can tell the landlord in writing to use the security deposit to pay your rent just the same as if the landlord had not sent you a notice at all.
Interest on your New Jersey Security deposit
The Rent Security Deposit Act requires landlords who rent 10 or more apartments to place tenants' security deposits in either an insured money market fund or a federally insured bank account. The account must pay a rate of interest set at least quarterly and equal to the average rate of interest paid by the bank on money market accounts.
Thursday, June 10, 2010
Use and Occupancy
When selling a home, sometimes there is a need for the buyer to move in before the contract closing date. If so, a Use and Occupancy Agreement is vital. Here is a sample of what the Agrement shoud look like:
Use and Occupancy Agreement
Buyer to Occupy Early
This Agreement dated ***Agreement Date***
is made BETWEEN
***Buyer Name***
***Relationship 2***
whose address is
***Buyer Address***
referred to as the “Buyer,”
AND
***Seller Name***
***Relationship***
whose address is
***Seller Address***
referred to as the “Seller.”
1. Sale. The Buyer has agreed to purchase from the Seller the property known as ***Property Address*** referred to as the “Property.” The contract of sale remains in full effect subject to the terms of this agreement.
2. Closing. Transfer of legal title is planned to take place on or about ***Closing Date***.
3. Buyer to Occupy Early. The Seller agrees to allow the Buyer to occupy the Property for the Buyer’s immediate family prior to the transfer of title pursuant to the terms of this agreement.
4. Nature of Occupancy. Buyer shall occupy the Property as a licensee only and not as a tenant. The Buyer confirms and agrees that the Buyer does not have any rights of a tenant, as set forth in N.J.S.A. 2A:18-61.1 et seq. and elsewhere.
5. Term. The Buyer may occupy the Property from ***Term Start*** until ***Term End*** at a cost of $ ***Daily Use Charge*** per day plus the cost of all utilities. Payment shall be made as follows: ***Payment Made as Follows***
6. Inspection Prior to Occupancy. Prior to moving in or performing any decorating, painting, repairs or other work on the Property the Buyer must inspect same. Any and all objections to the condition of the Property must be resolved by the Buyer and the Seller before the Buyer is allowed to occupy the Property. Occupancy by the Buyer shall constitute acceptance of the Property “as is” and shall constitute a waiver of Buyer’s right to object to the Property’s physical condition at the closing of title.
7. Hold Harmless Agreement. If the Buyer moves out of the Property for any reason without closing title to same, the Buyer agrees to compensate the Seller for any and all damages caused to the Property during Buyer’s occupancy. Buyer will likewise hold the Seller harmless from any and all claims and expenses including reasonable attorney fees which arise as a result of the Buyer’s use or occupancy of the Property. Buyer will keep adequate insurance in force to cover all such possible claims and damages.
8. Closing Adjustments. All adjustments for taxes, utilities, etc. shall be made as of ***Adjustment Date***.
9. Insurance. The Seller shall maintain homeowner’s liability insurance coverage on the Property until the closing of title. The Seller is not obligated to carry insurance coverage with respect to the Buyer’s personal property. The Buyer is advised to obtain insurance covering the Buyer’s personal property prior to the Buyer occupying the Property.
10. Termination. If the contract of sale is validly and legally cancelled then either party may terminate the Buyer’s occupancy under this Agreement upon reasonable notice.
11. Other Terms: ***Other Terms***
12. Signed and Agreed. The Buyer and Seller sign below, giving their consent to this Agreement.
Witnessed or Attested by: Date Signed:
Use and Occupancy Agreement
Buyer to Occupy Early
This Agreement dated ***Agreement Date***
is made BETWEEN
***Buyer Name***
***Relationship 2***
whose address is
***Buyer Address***
referred to as the “Buyer,”
AND
***Seller Name***
***Relationship***
whose address is
***Seller Address***
referred to as the “Seller.”
1. Sale. The Buyer has agreed to purchase from the Seller the property known as ***Property Address*** referred to as the “Property.” The contract of sale remains in full effect subject to the terms of this agreement.
2. Closing. Transfer of legal title is planned to take place on or about ***Closing Date***.
3. Buyer to Occupy Early. The Seller agrees to allow the Buyer to occupy the Property for the Buyer’s immediate family prior to the transfer of title pursuant to the terms of this agreement.
4. Nature of Occupancy. Buyer shall occupy the Property as a licensee only and not as a tenant. The Buyer confirms and agrees that the Buyer does not have any rights of a tenant, as set forth in N.J.S.A. 2A:18-61.1 et seq. and elsewhere.
5. Term. The Buyer may occupy the Property from ***Term Start*** until ***Term End*** at a cost of $ ***Daily Use Charge*** per day plus the cost of all utilities. Payment shall be made as follows: ***Payment Made as Follows***
6. Inspection Prior to Occupancy. Prior to moving in or performing any decorating, painting, repairs or other work on the Property the Buyer must inspect same. Any and all objections to the condition of the Property must be resolved by the Buyer and the Seller before the Buyer is allowed to occupy the Property. Occupancy by the Buyer shall constitute acceptance of the Property “as is” and shall constitute a waiver of Buyer’s right to object to the Property’s physical condition at the closing of title.
7. Hold Harmless Agreement. If the Buyer moves out of the Property for any reason without closing title to same, the Buyer agrees to compensate the Seller for any and all damages caused to the Property during Buyer’s occupancy. Buyer will likewise hold the Seller harmless from any and all claims and expenses including reasonable attorney fees which arise as a result of the Buyer’s use or occupancy of the Property. Buyer will keep adequate insurance in force to cover all such possible claims and damages.
8. Closing Adjustments. All adjustments for taxes, utilities, etc. shall be made as of ***Adjustment Date***.
9. Insurance. The Seller shall maintain homeowner’s liability insurance coverage on the Property until the closing of title. The Seller is not obligated to carry insurance coverage with respect to the Buyer’s personal property. The Buyer is advised to obtain insurance covering the Buyer’s personal property prior to the Buyer occupying the Property.
10. Termination. If the contract of sale is validly and legally cancelled then either party may terminate the Buyer’s occupancy under this Agreement upon reasonable notice.
11. Other Terms: ***Other Terms***
12. Signed and Agreed. The Buyer and Seller sign below, giving their consent to this Agreement.
Witnessed or Attested by: Date Signed:
Monday, June 15, 2009
Loans: To Modify or Not to Modfy
As a result of the mortgage and foreclosure crisis, there is a sprouting of a new type of business which that tout “loss mitigation consulting,” “foreclosure prevention,” “mortgage loan modification,” and similar services. According to the Department of Banking and Insurance, there is a rising number of advertisements, direct-mail solicitations and other marketing materials offering
The Department has also seen solicitations to licensees and to attorneys to partner with companies that purport to offer such services. These companies offer help to delinquent borrowers by obtaining payment plans, loan modifications, short sales and deeds in lieu of foreclosure. Mortgage bankers, brokers and solicitors have been targeted by these businesses for the purpose of gaining referrals.
What is a Loan Modification?
“A loan modification involves modifying the terms of an existing loan, typically to make it more immediately affordable for a borrower in default or in imminent danger of default, for instance because of a scheduled rate increase. The terms commonly modified are the interest rate and/or the term of loan. A loan modification is not a form of mortgage loan refinance or second mortgage activity,” per the Department of Banking and Insurance.
The
A "debt adjuster" is a person who either (a) acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or otherwise altering the terms of payment of any debts of the debtor, or (b) who, to that end, receives money or other property from the debtor, or on behalf of the debtor, for payment to, or distribution among, the creditors of the debtor. [N.J.S.A. 17:16G-1c(1)].
If you have a business, you may enter into a loan modification if you are:
a) The lender or owner of the loan; or
b) The mortgage servicing company, acting as an agent for the loan’s owner; or
c) An entity licensed by the Department as a Debt Adjuster under the Debt Adjuster Act; and
d) Other entities that are exempt from Debt Adjuster licensure, as set forth at N.J.S.A. 17:16G-1c(2):
The following persons shall not be deemed debt adjusters: (a) an attorney-at-law of this State who is not principally engaged as a debt adjuster; (b) a person who is a regular, full-time employee of a debtor, and who acts as an adjuster of his employer's debts; (c) a person acting pursuant to any order or judgment of court, or pursuant to authority conferred by any law of this State or the United States; (d) a person who is a creditor of the debtor, or an agent of one or more creditors of the debtor, and whose services in adjusting the debtor's debts are rendered without cost to the debtor; or (e) a person who, at the request of a debtor, arranges for or makes a loan to the debtor, and who, at the authorization of the debtor, acts as an adjuster of the debtor's debts in the disbursement of the proceeds of the loan, without compensation for the services rendered in adjusting those debts.
For Consumers, be wary of:
a) Payment of exorbitant upfront fees for services available from a proper source for free or at minimal cost;
b) Loss of fees paid, with no services rendered, and/or no protection from financial loss under a surety bond (Debt Adjuster licensees are required to be bonded in the minimum amount of $50,000.);
c) Loss of precious time in the midst of a default or foreclosure process;
d) Loss of title to the home without any real benefit, under certain scams; and
e) Further damage to credit profile.
The Department will investigate complaints relating to unlicensed persons offering loss mitigation consulting, foreclosure prevention, loan modification and similar services and will pursue appropriate remedies.
Thursday, May 7, 2009
WHAT IS A DURABLE POWER OF ATTORNEY ?
One of the most important documents a person can ever have is a Durable Power of Attorney. A Durable Power of Attorney permits a person to clearly define ahead of time your wants and wishes regarding financial and/or healthcare treatment in the event a person becomes incapacitated or disabled. A Durable Power of Attorney can provide peace of mind knowing that a person of your choice has been chosen to carry out your affairs when you are unable to do so. The person to whom the individual delegates power, known as the attorney in fact, is required to use the individual’s money only for the individual’s benefit. The fact that the individual has signed the Power of Attorney does not interfere with that person’s right to handle matters for him or herself, as long as you are able to do so.
A Durable Power of Attorney is extremely helpful if a person is temporarily hospitalized or traveling and will be away from home for some period of time or for any other reason a person is unable to perform their own payment of bills or banking. Furthermore, a Durable Power of Attorney may be a better alternative than adding someone’s name to an individual’s bank account because with the Power of Attorney, another person can handle a persons money without having an interest in it.
An attorney in fact can help a person obtain all the benefits he or she is entitled to by making claims and applications on their behalf. More importantly, a Power of Attorney can be revoked quickly. In all, a Power of Attorney is a very inexpensive tool that has extremely valuable benefits.
Subscribe to:
Posts (Atom)