If my rental property goes into foreclosure, is my primary residence protected?
Additional Information:
I own a 1 bedroom condo in Needham and am looking to buy a larger condo. My 1 bed condo is only worth about 25% of what I paid for it. If I’m unable to rent it after I buy the 2 bedroom, and the 1 bedroom goes into foreclosure, can they take the 2 bedroom from me? Can I file a declaration of homestead in Massachusetts? Would this help protect my properties?
ATTORNEY ANSWER:
Once again, the answer to your question depends upon the circumstances. In all likelihood if your 1 bedroom condominium goes into foreclosure, there will be a deficiency. A deficiency is the difference between what the lender would have received under the promissory note you signed and what the property finally sells for at foreclosure. If your property is only worth about 25% of what you paid for it, your deficiency could be substantial. Assuming the lender provides the requisite notice to you, the lender would be entitled to sue you for the money that you owe the Lender under the deficiency and could seek to attach and ultimately sell your 2 bedroom condominium to satisfy the deficiency. If the 2 bedroom is your primary residence, you can file a homestead that will protect you somewhat. With the homestead, the lender that held the deficiency could not foreclose the 2 bedroom to collect the deficiency, but it could still seek to put a lien on the property and when you eventually go to sell or refinance the 2 bedroom condominium you would have to deal with the deficiency at that time. In your situation, you may consider a short sale whereby you negotiate with the lender and seek a release of any deficiency. The key in any short sale with the lender would be a release of this deficiency debt so that you can move on with your life. Good luck. [Read more...]
December 10, 2011 – Boston Asian Landlord Association Seminar 波士頓亞裔房東協會
Dear Landlord and Friend,
Do you know where your property lines are? Do you assume that fence between your property and the neighbors’ is the property line? Is part of your land being used by someone else? Do you know you may lose the right to your land after 20 years of open use by someone else?
This month’s seminar is next Saturday December 10th. We will start at 6:00PM for networking. The seminar will start at 7:00PM. The location is: MIT, Tang Center Building E51 Room 315, 70 Memorial Drive, Cambridge, MA 02142.
I have a question re: short sale on our home in Westwood.
Additional Information:
My wife and I are considering a short sale on our home in Westwood. What are the tax obligations we may face?
ATTORNEY ANSWER:
The short answer is that it depends on the circumstances and you should check with a tax accountant on this issue. Generally, with regard to federal sales taxes, your liability depends upon whether the Westwood home is a primary residence or not. If your Westwood home is your primary residence, The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt. The act applies to debt forgiven in the calendar years 2007 through 2012. If your Westwood property is not your principle residence, you will be paying taxes on the short sale deficiency that is forgiven unless you fall into one of the exceptions to this general rule. Once again, we recommend that you speak to a qualified tax professional who is well versed in this area. [Read more...]
Avoid Exposure to Winter Weather-Related Litigation
What You Should Know About Accumulation of Snow and Ice
By: Howard S. Goldman
What is the winter forecast for this year?
According to the managing editor of the Farmer’s Almanac, “New England and Massachusetts are going to have a very stormy and snowy winter on tap.” As we approach the upcoming New England Winter, it is important for business and property owners alike to keep abreast of the latest developments and trends in Massachusetts law to minimize the exposure to litigation from, primarily, slip and fall accidents from snow accumulation. This Client Update
discusses the recent and major changes in Massachusetts law on the duty of care of a business/property owner regarding snow and ice removal. It also provides a few pragmatic recommendations for a carefully worded Snow Removal Maintenance Agreement that can minimize legal exposure.
Change in Massachusetts Law and Duty of Care
The traditional Massachusetts legal distinction with natural and unnatural accumulation snow and ice was recently abolished Massachusetts highest court. In the past, business/property owners were not negligent if they failed to remove a natural accumulation of ice and snow, and were negligent if they failed to remove an unnatural accumulation of ice and snow. This however changed with a recent decision from the Massachusetts highest court.
In the recent Supreme Judicial Court decision of Papadopoulos v. Target Corporation, (2010), the state’s high Court abolished the distinction between natural and unnatural accumulation of snow and ice, and applied to all hazards arising from snow and ice the same obligation of reasonable care that a property owner owes to lawful visitors regarding all hazards. In Target, the plaintiff, on his way back to his car after the purchase, slipped on a piece of ice that had frozen to the pavement. The ice on which plaintiff tripped either had fallen from the snow piled on the road median or had formed when snow melted and ran off the snow pile stacked by the snow plower, and then re-froze to the parking lot pavement. The Supreme Judicial Court in Target, in discarding the distinction between natural and unnatural accumulations of snow and ice, stated that such distinction was an exception to the general rule of premises liability that a property owner owes a duty to all lawful visitors to use reasonable care to maintain its property in a reasonably safe condition in view of all of the circumstances.
The Top 5 Traps to Avoid When Buying a Business
The American dream of one day owning your own business and being your own boss is often considered. After years of hard work and savings, you finally purchase your own business. Within 6 months of purchase, however, your business is closed, and to make matters worse, you have signed a personal guaranty on a long term lease and are considering filing for personal bankruptcy protection. Unfortunately, the attorneys at Goldman & Pease LLC have seen this happens all too often. We have, however, seen a recurring reasons for these business failures that we would like to share with you so that you can seriously consider these factors before the business purchase.
I. KNOW THE “VALUE” OF THE BUSINESS YOU ARE BUYING
Know the “value” of the business you are buying. This seems quite obvious, but in our experience, overinflated asset values are the biggest reason for failure of a recently acquired business. For example, consider the acquisition of a real estate franchise. Certified financials, based upon the last twelve months of operations, show that the real estate franchise is generating average monthly gross revenue of $50,000.00 per month. Your accountant’s review of the financials reinforces the legitimacy of the financials. Based upon these financials, you agree to purchase the business. If you agree to purchase the business based solely upon past financials, you are falling into a trap that can lead to disaster.
The value in a real estate franchise is the “good will” and the reputation the franchise has developed in the community. Most importantly, the top notch real estate agents must remain a part of the acquired company. All too often, we see someone buy a business, such as a real estate franchise, and end up with the desks, the chairs, and the business cards, but the top sales producers leave the company. The value in any acquired business is the ability to make money in the future, based upon the future income stream, not the past income stream.
December 9, 2011 – Pitfalls for Property Managers
Attorney Howard Goldman and Attorney Cameron Pease will host a seminar for the Premier Property Solutions on Friday, December 9, 2011.
December 9, 2011: Boston
Topic Covered: Protecting Tenant at Foreclosure Act, New Lead Paint Law, Data Security Regulations, New Wage Act, Collection Techniques, and more.
November 29, 2011 – Fidelity Title Legal Updates
Goldman & Pease will be presenting to the real estate title insurance claims representatives from Fidelity on Tuesday, November 29, 2011 in Jacksonville, Florida.
November 29, 2011: Jacksonville, Florida
Topic Covered: Equitable Subrogation, Bankruptcy Impact, Boundary Disputes/Adverse Possession, Mechanics Liens, Tax Taking, Foreclosure Statue, Homestead Declaration, and more.
October 4, 2011 – Lawyer’s Council Presents “Better Time Management”
October 4: 8:00 am – 9 am
Newton Needham Chamber of Commerce – Lawyer’s Council
Topic: Increase Your Revenue & Happiness with Better Time Management (PDF Flyer)
Location:
140 Kendrick Street
Main Building C
Needham, MA
Practical advice on focusing on what’s most important, controlling email so it doesn’t control you and hopping onto the 21st Century’s bandwagon of technological efficiency and empowerment. All in an Hour!!!
Learn:
*Tips for Focusing Your Practice on Success
*Putting A Stop To Email Overload – Top Tips To Streamline Your Inbox
*Technology: Maximizing Efficiency For Any Attorney and non-attorney’s-even you.
My boyfriend and I own a house in Southborough MA.
Additional Information:
We recently broke up and I moved out. I’m still paying 1/2 the mortgage. How do we equitably split the house?
ATTORNEY ANSWER:
This is becoming a common problem today as more unmarried people purchase real estate together. When I counsel unmarried couples who purchase real estate in this day and age, I recommend that they enter into Agreements that outline how the parties will “uncouple” in the event of a breakup. In addition to the questions you raise, clients in this situation often argue that they should no longer have to pay the mortgage because they no longer live at the property. Often times one couple states that they put down most of the down payment and mortgage payments and they want their money back. In addition, issues come up as to who can claim the deductions on their tax returns. From your question, it appears that there was no contractual agreement outlining what is to be done in the event of a breakup. Accordingly, you will most likely have to file a “Petition for Partition”. This is a civil lawsuit to resolve these situations wherein the Judge considers all the factors involved in the joint ownership of the property. Such factors include, but are not limited to, each parties respective contributions to the joint property over the years. A judge will then try to come up with an equitable solution to “uncoupling” your ownership in the property and will address the issues that arise out of the joint ownership. Good Luck.
