Black and Buono Blog

...by Anthony Buono

Those filing personal bankruptcy may think they should do it without a lawyer because they cannot afford one. We are bankruptcy attorneys so of course we are going to say, “you really should hire a lawyer”. But the fact of the matter is, you really should.

But don’t take our word for it. Here is an excerpt from the USCourts.gov website:

Businesses must have an attorney to file a bankruptcy case. BUT, individuals may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney it is extremely difficult to do it successfully.

It is very important that a personal bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor's rights. For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay. Bankruptcy has long-term financial and legal consequences - hiring a competent bankruptcy attorney is strongly recommended.

If you are considering declaring personal bankruptcy, please contact Black and Buono. We have represented hundreds of clients in all phases of Chapter 7 Bankruptcy and Chapter 13 bankruptcy proceedings, from preparing the initial petition through plan formulation and confirmation.

...by Kiley Black

When buying or selling property, it is important to have the expertise of a real estate attorney to help you through any obstacles that may come up along the way. The risk of not hiring a Real Estate Attorney can cost a buyer/seller thousands if not tens of thousands of dollars. Since the purchase or sale of your home may well be your most significant financial transaction, you want to take care when entering into a real estate transaction.

Most people don’t realize how complicated buying and selling a house can be. The procedure requires reading and drafting complicated legal documents and familiarity with real estate transactions. If you have bought or sold a home, or know anyone who has, than you understand that the amount of paperwork involved is legendary. Each step from negotiating terms to drafting and closing entails a significant amount of paperwork.

Most people buy or sell a home once or twice in their life. Real Estate Lawyers handle this transaction every day. And each transaction is different, with different obstacles and situations.

The process of buying or selling a home includes the following:

1. Negotiating the terms of the Sales Contract. Everyone wants the best deal and a lawyer can help you protect your interests.
2. Strict legal deadlines: Many transactions fall through because deadlines are not met.
3. You need financing: At closing the purchaser signs hundreds of loan papers that an attorney can best explain.
4. Home inspections: A real estate lawyer will conduct a title search to assure the seller is the owner of the property, has paid all the taxes, and there are no judgments existing against the property.
5. Property and mortgage insurance: Mortgage lenders require that the home is insured

Don’t try to do this on your own. A buyer/seller should always have an attorney read the legal documents and explain those documents in laymen terms. You can be assured that your interests will be protected with Black and Buono.

...by Anthony Buono

Addressing a group of 200 real estate agents, mortgage brokers, attorneys, home inspectors, and property managers today, Attorney General Martha Coakley highlighted her proposed legislation to address the ongoing mortgage foreclosure crisis that has gripped Massachusetts.

An Act to Prevent Unnecessary and Unreasonable Foreclosures, which is sponsored by Senator Spilka and Representative Walsh, requires that creditors take reasonable steps to avoid foreclosure and prohibits foreclosures without appropriate documentation.  The legislation will also prevent additional foreclosures by mandating loan modifications in certain circumstances.  AG Coakley discussed the legislation during her keynote address at the North Shore Association of Realtors’ Annual Membership Meeting and Business Expo in Peabody.

“Our communities have been devastated by the housing crisis,” said Coakley.  “The proposed legislation will help rebuild our communities by promoting a process in which creditors and borrowers work together.  Requiring creditors to take reasonable efforts to avoid unnecessary foreclosure is in everyone’s best interest.”

The legislation targets loans generally considered to have a higher risk of default, such as interest-only loans, adjustable rate mortgages, and loans with short-term introductory interest rates.  Under the bill, creditors are required to have appropriate documentation that supports their right to foreclose prior to beginning foreclosure proceedings and are prohibited from passing on certain fees and costs associated with foreclosure to homeowners. 
The legislation makes the failure to comply with the law a violation of the Massachusetts Consumer Protection Act.

During this economic crisis, Coakley’s office has brought predatory lending cases against two major subprime lenders, Fremont Investment & Loan/Fremont General and H&R Block/Option One Mortgage Corporation.  The Attorney General’s Office has also reached settlements with investment giants Goldman Sachs and Morgan Stanley for their role in securitizing subprime loans. 

Original article by Moe Bedard  

...by Kiley Black

The average person makes one or two major investments in their life. These are usually related to the purchase of properties. You will probably not pay a larger sum for anything than the one you pay for your home. Since this is a huge investment you need to make sure that everything will be fine with it. Unfortunately most buyers do not know much about the legal side of the deal. Thankfully a real estate lawyer can help. It is true that you will have to incur extra costs if you decide to enlist legal services, but it will definitely be worthwhile in the end. Here is why.

A real estate lawyer will do all the preliminary checks on the property you intend to buy. They will look at all the papers regarding the estate and will make sure that there is no unclear or fraudulent information that can cause problems in the future. Most importantly, the ownership of the property will be verified. This is essential; it would be terrible to pay money without actually getting any rights to the house.

Perhaps the main reason why you should use a real estate lawyer is that they will prepare, review and explain to you every paper that you need to sign. You can be certain that your interest is well protected when you have a professional checking every detail of the contract. This person can work in cooperation with your real estate agent to make sure the other party does not demand more from you now and in the future. Your lawyer will explain every detail of the contract and will make sure that you understand it. In this way you are protected.

A real estate attorney will make sure that you will not face lawsuits after the sale. Attorneys will check for unpaid taxes or any other liens related to the property you are buying. They also will ensure the settling of these issues prior to the contract being signed. 

If you are purchasing a home in the near future, it is in your interest to contact and enlist your own real estate attorney. 

Original article Published in Lawyers

...by Kiley Black

You as the borrower must purchase a title insurance policy for your mortgage holder.  As a buyer, you deserve the same protection.

A Title is the legal evidence, of right, that a person has to the ownership and possession of land. It is possible that someone other than the seller has a legal right to the property you’re buying. There can be any number of title problems that remain undisclosed even after the most careful search of public records. These hidden “defects” are very dangerous and sometimes are not discovered for months or even years after you purchase your home.

In these instances of title problems, you could be forced to spend substantial money on a legal defense to protect your rights. An owner’s title insurance policy helps protect you against losses and defects and provides legal defense for coverage risks. Your lender only requires that you purchase a loan policy. However, this policy only ensures the lender has a valid, enforceable lien on the property. It does not protect you, the new owner of the property.

An Owner’s Title Insurance policy, on the other hand, is designed to protect you, the buyer, from title discrepancies.

Some of the areas protected under an Owner’s Title Insurance Policy are:

• Someone claiming an ownership interest in your title
• Leases, contracts or options affecting your title
• Someone claiming to have rights affecting your title due to forgery or impersonation
• Someone having a right to limit your use of the land
• Zoning violations
• Subdivision law violations
• Improvements that encroach into an easement
• Building permit violations
• Covenants, conditions and restrictions
• Lack of vehicular and pedestrian access
• Supplemental assessments arising as a result of construction or transfer prior to the policy date
• Damage to your house caused from someone with easement rights
• Someone refuses to buy your land because your neighbors’ structures are on your land

At The Law Office of Black and Buono, we are title agents for two of the nation’s largest title insurance companies.  We will gladly answer any questions you might have in order to assist you in your decision to purchase an Owner’s Title Insurance policy at the time of your home purchase.  Your home is your largest investment.  You want to make certain that your investment is protected as much as possible.

...by Anthony Buono

Personal bankruptcy filings have risen to their highest levels since bankruptcy reform legislation was enacted in 2005, spurred by widespread job losses, underemployment and a stagnant real estate market.

The bankruptcy epidemic has affected a wide variety of households, from people in their prime earning years who are struggling after layoffs to retirees who are no longer able to pay their mortgages.

In Massachusetts, the total number of Chapter 7 and Chapter 13 personal bankruptcy filings rose to nearly 23,000 last year, up 16 percent from 2009. Nationally, personal bankruptcy filings rose 9 percent over the same time.

A 33-year-old administrator at a residential treatment facility for at-risk teens had never fell behind on his bills. But the purchase of a condo in Abington during the height of the real estate bubble proved to be disastrous for him.

He bought the condo in 2005 with a friend as an investment and short-term living arrangement, using an interest-only mortgage that became an adjustable rate mortgage after five years.

As the economy lurched into recession, both took pay cuts and David’s roommate lost his job. Hoping to force the lender to modify the loan, the pair stopped paying the mortgage for nearly three years. They finally settled on a short sale, a process that left them with a $90,000 debt. “Unfortunately, like a lot of people we ended up with a mortgage that was set up for failure,” he said.

The bankruptcy epidemic has cut across all circles, but what’s changing is the demographics, local bankruptcy lawyers say.

For the first time, we’re seeing a great deal of elderly people in bankruptcy, before 2007, we didn’t.

One lawyer recalled a woman nearing her 90th birthday who begged him to take her case so that she could pass on a clean estate to her family.

Many retirees filing for bankruptcy are people who are too old to return to work, but facing increases in adjustable-rate mortgage payments.

While job loss remains the biggest trigger for a bankruptcy filing, the second-biggest category is people entering retirement.

Their income is greatly reduced and they can no longer afford credit card payments and in some cases their car payments.

There has also been an increase in higher-income clients seeking bankruptcy because of job loss or reduced income.

Bankruptcy cases fell sharply in 2005 after enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act. The federal law was intended to curb abuse and fraud of the bankruptcy process by debtors and force more debtors to pay back their creditors.

It did so by making it harder to file for Chapter 7 bankruptcy, a straight liquidation process, as opposed to Chapter 13, in which the debtor is required to pay back at least some of the debt over a three- to five-year period.
Under the new bankruptcy laws, debtors who make more than the local median income are required to file for Chapter 13.

The law also imposed new requirements on debtors and their attorneys. Debtors are required to take credit counseling and financial management courses before their case can be discharged by the court.

Lawyers, for their part, are now required to verify their clients’ financial statements and assets. That has created more paperwork and increased attorneys’ fees. A typical Chapter 7 case, which takes approximately three months to make its way through the courts, costs a consumer $1,000 to $2,500, Nielson said. Chapter 13 cases are capped at $3,500 unless the court approves additional expenses.

But what the new law has failed to address is the root cause of many bankruptcy filings: loose credit standards that enabled borrowers to obtain bigger mortgages and credit lines than they can afford.

Although bankruptcy filings linger on a person’s credit report for 7 to 10 years, they can take steps to rebuild their credit.

One method is a secured credit card, in which a debtor deposits money as collateral to serve as the credit line. That enables them to establish a history of payments.

Original Article - Patriot Ledger

...by Anthony Buono

There are times when a situation you believe will end up in bankruptcy actually ends up as a success story. When you hire the right lawyers who look at the whole situation and are able to assess your needs, what you thought was a bad situation can end up with a happy ending.

We had a couple in their 70’s that had a lot of equity in their home. However their home had a mortgage. They were living on their savings and social security and the wife took a fall. The injury incurred quite a bit of uninsured medical expenses, which essentially completely depleted their savings.  They wanted to stay in their home, however they were not able to take any equity out of the house and they were not eligible for refinance or a reverse mortgage because of their limited amount of savings. They did have some assets but they were not easily available to them.

They came to us thinking that they were going to file bankruptcy. Now even though we are bankruptcy counselors, if we can help clients avoid filing for bankruptcy protection, we encourage them to do so. We were able to connect them to a private lender who was able to give them a competitive rate to allow them to refinance both their mortgage and equity rate. They were able to refinance and for a  period of time they were able to make payments interest. They were able to continue on for two years until such time that they were able to relocate to NC, which had been part of their original plan.

This was terrific because it allowed a situation which could have ended in bankruptcy to be completely avoided. It was a win win situation. The lender was happy and the clients were extremely appreciative. We are always pleased when we can do that for someone. 

By Anthony Buono

Many people come to me when, financially, it is already too late. They have been receiving the notice of foreclosure letters for 120 days, and all of a sudden they need to be out of their house tomorrow and they want us to help them. Understand, we would love to help, but we needed to begin our dialogue several months or at least several weeks ago. If you have over $15k in Credit card debt and you make less than $100k a year, you need to talk to someone. You are already in financial trouble. If you are paying the minimums on your credit card, at this rate it will take you 22 years to pay off your credit card debt.

Does that sound familiar? If you are living week to week, then your financial situation is not stable. You should talk to a professional credit or bankruptcy attorney. There are warning signs of financial troubles, but unfortunately, human nature is to stick our head in the sand.

This is not the answer to consolidating your debt, avoiding bankruptcy, or staying out of bad financial straits. Plan ahead if you are having financial troubles. How do you know you are having financial trouble? With a little introspection, you will realize that you already know if you are. However, here are some questions you should ask yourself: Are you paying for essentials with a credit card? Are you paying only the minimums on your credit cards? Do you owe more than 15k in credit card debt and making less than $100k per year? Have you skipped a mortgage payment? Or two? Are you living week to week? Have you already received a notice of foreclosure on your home? If any of these questions ring true, please call us at 877-619-5089 while there is time for us to help you. If all of these ring true, please call us today. And, while it is human nature to choose to ignore these problems, think of how much better you will sleep at night once you start getting answers to your questions, start putting together a solution, and start understanding the process. Call us at 877-619-5089 for yourself and for your family.

... By Kiley Black

There are many reasons to choose your own real estate attorney. Whether you are buying or selling a home you should consider getting the help of a qualified attorney. Many home buyers believe that if their transaction is straight forward they may not feel the need to get a real estate lawyer. However, there are many transactions that appear straight forward and are anything but. A real estate attorney can help you through the paperwork.

There is so much paper to sign when you buy a home that often there is not enough time to read it all. Most home buyers only scan the information. Unfortunately, if terms have suddenly changed, and you have signed the paperwork, you have agreed to the new terms.

Obviously this could change your payments, move in stipulations, or the terms of ownership. Having an attorney help you look over the papers before you sign is important.

If you unknowingly purchase a home that has a lien attached to it, you have to pay off the lien. This too adds to the price of the home and changes your payments. Not paying the lien could affect having your name put on the home and/or poorly affect your credit.

If you are considering buying a home that is being sold as a foreclosure or short sale, before you put in an offer have a real estate lawyer look over the terms. Homes that are short sold or foreclosed often have issues attached to them, such as liens or property damage.

It is important for buyers to understand the legal documents involved in buying a home. The Law office of Black and Buono has successfully represented hundreds of homebuyers. We know that buyers who engage the services of a qualified real estate attorney early in the home buying process encounter far fewer problems than those that choose to do it alone and then seek legal advice when something goes wrong.

...By Kiley Black

There are some basic questions which we get asked every day about the Homestead Act. There is quite a bit of confusion out there regarding Homesteading and if you should or should not pursue a MA declaration of homestead.

An Estate of Homestead is a type of protection for your residence. The document is called a “Declaration of Estate of Homestead”. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars of the value of the residence, per family. At Black and Buono, we will provide you a Declarations of Homestead for no additional fee.

Many ask how exactly this protects them. When you file a declaration of Homestead, your home which should be your principal residence, is protected against an attachment or levy. Therefore, you would not have to sell your home to satisfy debts to the extent of five hundred thousand dollars per residence, per family. The term “Family” in this law constitutes either parents or children, or if you own your home alone, a single owner of the home. In simple terms, if you get sued as a homeowner, you home is protected up to $500,000.

There are, however, certain situations even Homesteading cannot protect you from. These include Federal, state and local taxes, assessments, claims, and liens; mortgages used to purchase the residence; an execution issued from the Probate Court to enforce a spouse to pay for the support of a spouse or children; buildings on land not owned by the owner of a Homestead estate which have attachments or a levy, or are sold; upon an execution issued from a court based upon fraud, mistake, duress, undue influence or lack of capacity; debts contracted prior to the acquisition of the homestead.

At Black and Buono we understand that the Homestead Act is confusing and we offer counsel in regards to homesteading and if it is right for you. You should never make a financial decision if you are confused or unsure. Always consult with a real estate attorney if you have any questions. We are here to help, contact us today.