Brooklyn Attorney

Hurricane Victims Assistance

Brooklyn Attorney — Mon, 12 Nov 2012 21:32:30 +0000

To those of our clients who have experienced the devastating results of Hurricane Sandy, the Law Office of Michael S. Reinhardt & Associates is here to assist those in need. We have received many phone calls from clients in need of assistance deciphering through paperwork, reviewing short term leases, or preparing leases. I would be happy to assist in any of these matters free of charge.

Additionally, many have been concerned regarding documentation that has been destroyed such as Wills, Power of Attorney forms, etc. Any victim that has lost important documentation similar to these will be eligible to have new documents prepared free of charge.

Our thoughts are with you and your families during this difficult time.

If you should have any questions or would like more information, please do not hesitate in commenting this post or feel free to email or call (718) 377-7798 to speak with a member of our staff.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

What is the importance of having a Will?

Brooklyn Attorney — Thu, 17 May 2012 20:34:45 +0000

A will is a very important document to have. If you die without a will, the State of New York will determine who administers your estate and to who your property will pass to. If you are married and have children, you might be surprised to know that without a will your property will not automatically go to your spouse.

Intestacy laws state that your spouse will receive the first $50,000.00 of your estate and the balance will be split between your spouse and your children. If your children are minors (under the age of 18), the court may determine who handles the affairs on behalf of your children.

If you have recently purchased a home, you should consult with an attorney to make sure your intentions will be carried out in the event of your passing.

If you are interested in a free consultation to discuss the preparation of your Last Will & Testament, please do not hesitate in emailing or contacting (718) 377-7798 to speak with Michael Reinhardt.

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Shorts Sales vs. Foreclosures

Brooklyn Attorney — Thu, 03 May 2012 20:19:50 +0000

In recent news, it has been reported that short sales made up 23.9 percent of home purchases as compared to foreclosures, which comprised of 19.7 percent of sales. These numbers from January 2012 were relatively higher than the numbers collected in 2011, which showed foreclosures to have the bulk percentage of transactions in comparison to short sales.

The reason for this change is a result of banks and government agencies taking the initiative to increase the likelihood for short sales to proceed to closings. It is known that foreclosures affect not only our economy, but also the families and communities in which the homes are located. The promptness of banks approving short sales and taking the initiative to make these sales a priority, will help families who are unable to keep their home proceed to a short sale closing and avoid a foreclosure proceeding.

If you should have any questions or would like more information regarding this topic, please do not hesitate in commenting this post or feel free to email or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

New Short Sale Rules!

Brooklyn Attorney — Thu, 26 Apr 2012 20:11:50 +0000

As of February 2012, new rules pertaining to Short Sales have been implemented designed to help preserve the credit of Short Sale seller’s who aside from not being able to pay, are current on their credit obligations.

Prior to February 2012, Short Sales were treated as a settlement which would impact your credit score by hundreds of points, and would take many years for your credit to recover.

These new rules treat the Short Sale payoff with neutral ratings, which will effect the homeowners credit less dramatically than they have in the past.

DISCLAIMER:

Why doesn’t everyone with no equity in their homes do a short sale?

Brooklyn Attorney — Thu, 05 Apr 2012 20:49:58 +0000

This sounds like a no brainer! Buy a house, and if the value depreciates, just sell the home and get a short sale payoff. However, its not quite as simple as that. When getting involved with a short sale payoff there are specific factors which must be considered.

Aside from the lack of equity in the house, the homeowner must be insolvent, which means that the homeowner has no way to pay the loan. That eliminates the millionaires and those individuals with money in their bank accounts. The lender will require the homeowner to fill out a borrower financial statement listing their assets, liabilities, income and expenses. This information requested is similar to information requested in the loan application.

Lenders also look at the type of loan that was taken out when the homeowner purchased the property. Certain loans are more problematic and amount to a bad investment on both the borrower and the lenders part. Provided there was no fraud involved, the lender probably has several of these riskier types of loans with little to no down payment, coupled with borrowers who have less than exceptional credit. This might make a lender more willing to agree to a short sale in order to get back as much of their investment sooner than later.

If you should have any questions or would like more information, please do not hesitate in commenting this post, or feel free to email or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

Recent Trends in Real Estate

Brooklyn Attorney — Thu, 29 Mar 2012 19:36:45 +0000

A recent report indicated that from ninety-eighty of the top cities in the United States, it is now cheaper to own a house than to rent. The report attributes this phenomenon due to low interest rates and real estate prices that are at or pretty close to rock bottom levels.

The short sale inventory is continuing to apply downward pressure through pricing. It appears that anyone who knows that they will be remaining in their residence for 5 to 7 years should expedite their efforts to purchase a home.

If you should have any questions, or would like more information please comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

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What are the benefits for all parties involved in a Short Sale?

Brooklyn Attorney — Thu, 22 Mar 2012 21:07:17 +0000

To my Short Sale enthusiasts!

I know all Real Estate professionals have tossed and turned over whether or not to get involved in Short Sales. These transactions are not easy, there is no set pattern that guarantees success, nor do they offer a measurable return on your investment of time.

If all of this is true, then why do I continue writing about these types of transactions? I’ll tell you why… if it were easy, everyone would be working on them, which would pose it’s own set of problems from incompetence to saturation of agents.

The sentiment is changing once again, and statistics show some positive reasons why homeowners should want to get their homes sold through Short Sales. A recent series of publications reveal the following benefits selling with a Short Sale as opposed to Foreclosure.

SELLER’S BENEFITS

FICO SCORE:

A Foreclosure can lower a credit score by as much as 400 points.

A Short Sale will lower a credit score by around 80 to 100 points.

ABILITY TO PURCHASE:

A Foreclosure can delay the homeowners ability to purchase by as much as SEVEN (7) years.

A Short Sale can enable some sellers to purchase a home again in TWO to THREE (2-3) years.

CREDIT FROM THE LENDER FOR MOVING EXPENSES:

Some Lenders are offering credits for moving expenses to sellers who cooperate.

LENDER’S BENEFITS

The Lender benefits by a quicker turnaround than if they have to Foreclose, saving the Lender the carrying costs, repair costs, and a host of other problems for a Lender who is not in the business of owning homes.

Lenders are now educating their workers to be less problematic when dealing with Short Sales based upon the financial benefits, and the pressure from the Government.

SALESPERSON BENEFITS

The playing field provides a great opportunity for all agents to educate themselves and capture a part of the Real Estate sales that are growing every year.

As a famous Entrepreneur said in the mid 1800′s in California, “There’s GOLD in them thar hills”. This could be the GOLD RUSH you are waiting for! This may not be easy an task, but usually anything worthwhile requires effort.

If you have any questions, concerns or would like more information comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The Problem with Short Sales: TIME

Brooklyn Attorney — Thu, 15 Mar 2012 17:09:49 +0000

The length of time it takes a lender to provide answers is a common problem stated by those who try to work with short sales. The lenders simply do not handle all of the requests as quickly as needed.

If a buyer has obtained a mortgage commitment for 30 days, it will probably expire before the short sale bank renders a decision. Now the buyer is faced with not only trying to get an extension on the mortgage, but also wondering how much longer they will need.

When the bank renders a payoff figure, it is usually good for a few weeks. If the buyer does not have a mortgage, the payoff figure may expire, causing the process to start all over again.

The larger issue however, is while all parties are working hard to complete this process in an attempt to proceed to the closing, the foreclosure clock is still ticking. It is only a matter of time until the seller is faced with the issue of a foreclosure proceeding.

To assist both my clients and real estate agents who are working with short sale transactions, I have created a guide providing beneficial information about short sales, in depth explanation of documentation required, and sample documents. If you are interested in receiving a copy of this guide, please visit my website and request a copy to be sent to you today!

If you have any questions, concerns or would like more information comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

Why are so many homeowners underwater?

Brooklyn Attorney — Thu, 08 Mar 2012 21:18:00 +0000

Several years ago, the psychology of the home buyer was to become a homeowner as part of the “American Dream”. If they faced an obstacle paying their mortgage, they could sell the house for more than they purchased it for because it was assumed that real estate always goes up in value. However, this assumption is WRONG.

Some people had loans that were adjustable, and simply reset at monthly payments that the homeowner could not afford. Others, had loans that they never should have been approved for, had it not been for some loose banking policies that were not seen as risky provided that the market would continue to rise.

The other category of homeowners, were faced with hardships such as unemployment, illness, disability, death of a spouse, non-payment from tenants, and/or unforeseen major repairs needed to the property.

The reality of our world also tells us that there are a percentage of homeowners who will try and use this banking crisis as an opportunity to take advantage of a situation and fraudulently attempt to do a short sale while they have the ability to repay the loan with other assets they possess.

It is important for homeowners to confront these obstacles when faced with them to avoid falling into a possible foreclosure proceeding.

If you have any questions, concerns or would like more information comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

What is a Short Sale Package?

Brooklyn Attorney — Thu, 01 Mar 2012 21:14:40 +0000

When doing a Short Sale, the lender will require a short sale package be submitted before any consideration will be given to a request for a Short Sale. The following documents will be requested by the lender:

Authorization letter for the lender to speak with a real estate agent, attorney, or other third party.
Estimated Net Sheet; an estimate of what the lender can expect to receive from the sale after the expenses.
Appraisal of the Property (also known as the Broker Price Opinion – BPO).
Hardship Letter indicating why the owner cannot make the payments. Supporting documents such as medical bills, bank statements, pay stubs, etc., should be included.
Estimate of any repairs that may be needed.
Asset and liability worksheet should be filled out to determine financial inability to re-pay.
A Contract of Sale executed by the Purchaser.
Payoffs of other loans, liens or other mortgages on the premises.
Any other information that the lender is requesting.

When submitting documents to the lender it is imperative that you submit all documentation in a prompt fashion, as a delay in submitting documents can lead to the lender not approving the short sale.

If you have any questions, concerns or would like more information comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER: