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| | Vivian M. Williams & Associates
"THE
INVESTOR" | Newsletter
July, 2007 | |
 Dear Subscriber; Welcome to the first issue of Vivian M. Williams &
Associates monthly real estate and commercial newsleter. It is part
of our ongoing effort to keep you informed with legal issues that
may affect you and your investment. Because of our proactive
approach we are constantly researching legal issues and the
investment climate, discovering issues that may be impact you as an
investor or a professional. Every month we share our research with
our subscribers.
Vivian M. Williams & Associates
212-618-1791
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| THE MORTGAGE CRISIS MAY HIT PROPERTY OWERS HARD IN
07
 In 2007 about $1 trillion in
adjustable rate mortgages will reset. This along with some $400
billion of adjustable rate mortgages that reset in 2006 will result
in many homeowners facing a 25% hike in mortgage interest rates.
Consumer Bankruptcy News is reporting that "A deflating housing
bubble combined with higher mortgage rates will make it difficult
for these homeowners to sell their homes or refinance their
mortgages". The problem is expected to be compounded by the fact
that many homes, hit by skyrocketing adjustable mortgages, will
have little or no equity and in some instances, the value of the
property will fall below the original mortgage. Mortgage and appraisal fraud will be major contributors to the
woes homeowners are likely to face. Reported incidents of appraisal
fraud increased drastically from 1999 to 2007. Appraisal fraud
usually involves the inflating of home values. It is easy for this
practice to be undetected by lenders because they normally hold the
loans for a short period before selling them to investment
firms. |
NOT JUST ANY MORTGAGE!
Research What's Best For You
 Many borrower, simply take any mortgage offered
to them. Borrowers are usually trilled by and opt for the highest
loan amount offered. This is very often a mistake that leads to
foreclosure. The first question the borrower should try to
answer is how much he or she can afford not what a lender is
prepared to lend. In trying to determine what is affordable the
borrowers has to select the appropriate mortgage
product. An often sought after mortgage is the 30 year
fixed rate. This locks in an interest rate for the duration of the
loan. The fixed rate is usually higher than the rate offered for
the initial period of an Adjustable Rate Mortgage ARM. If the
borrower doesn't intend to keep the property for more than five
years, an ARM may be more appropriate because the rate will be
lower for the duration of the borrower's obligation. The Borrower
should be aware that the initial rate for an ARM (the teaser rate)
changes after the fixed period. It is after this period that many
borrowers find the mortgage unaffordable. The borrower should also be aware of the
dangers of variations of ARMs usually referred to as Option ARM.
These may contain fine prints that spell out your
doom. Once you have decided to purchase you should
obtain a pre-approval, lock in the interest rate and consult an
attorney. Vivian M Williams &
Associates 212-618-1791 |
|
HOMEOWNERS LOSING THEIR PROPERTY IN BAD
DEALS
The real estate crisis facing many property owners has given rise
to a mad rush to transfer title to relatives, friends, and even
strangers. Often, these transfers are done to save the property or
to secure refinance for a better interest rate, or simply to reap
some of the equity. The practice has been encouraged by loan
officers, brokers, and real estate agents, who often draw down big
commission at Closing. With about $1trillion in adjustable rate
mortgages scheduled to reset in 2007, more and more property
owners will fall victim to
conveyance schemes. A common example of dangerous conveyance practices occur
in cases where the property owner is faced with foreclosure or an
urgent need for for cash, executes a deed conveying the property to
someone with good credit who then takes the mortgage in his or her
name. Usually, this is done without proper legal advice and
protection. For instance, what if the person to whom the property is
transfered dies leaving a greedy spouse or children? The practice
is made worse by the fact that a fake sale is usually the
means by which the property changes hand. A property faced with
this proposal should seek advice from an attorney specialized in
this field. Vivian M Williams, &
Associates 212-618-1791 |
RETURNING DOWNPAMENT MAY NOT SAVE SELLER FROM SPECIFIC
PERFORMANCE
 The Seller of real property may be
held to specific performance even in cases where the downpayment
was returned and accepted by the Purchaser. In Narendra v.
Thieriot, decided by the Supreme Court of New York, Appellate
Division, a judgment of specific performance was entered against
the Seller based on the court's finding that the Seller did not act
in good faith to convey title to the Purchaser under the terms of
the contract of sale. In Narendra, which was decided on June 5th, 2007, the Seller relied on the
fact that the downpayment was returned to the Purchaser. It was
contended that by accepting the downpayment, the Purchaser was
barred from an action of specific based on the principle
of "an accord". The court noted that "In general,
acceptance of a check in full settlement of a disputed unliquidated
claim operates as an accord and satisfaction discharging the claim
on the theory that the parties have made a new contract discharging
all or part of their obligations under the original contract
(see Merrill Lynch Realty/Carll Burr, Inc. v Skinner, 63
NY2d 590, 596). However, there is an exception to this rule when as
in Narendra, the person receiving the check was NOT clearly
informed that acceptance of the amount offered will settle or
discharge a legitimately disputed unliquidated claim" (Merrill
Lynch Realty/Carll Burr, Inc. v Skinner, supra
at 596). When returning
the downpayment in a contract of sale for real property care must
therefore, be taken to ensure at all times, that it is made clear
that the acceptance of the downpayment settles all disputes and
effectively terminates all obligations of the party. It is NOT
sufficient to merely return the downpayment. |
| LAW FIRM PROFILE:
VIVIAN M. WILLIAMS & ASSOCIATES
(212-618-1791) 14
Wall Street, 20th Floor, New York, NY 10005
 Since 2004
Vivian M. Williams & Associates has been providing dynamic and
very aggressive legal representation for clients with an
exceptionally high success rate. Our interdisciplinary approach and
constant reach give our clients an edge in litigation and
transactions. Vivian M. Williams & Associates has won decisions
and settlements against major commercial entities including large
banks. We take on the tough cases our competitors are reluctant to
pursue and we get results. Practice
Areas: Real Estate; Intellectual Property; Media Law; Bankruptcy;
Landlord and Tenant Law; Condominium Law; Broadcast Regulation;
Communications and Media; Copyrights; Copyright Infringement;
Copyright Licensing; Copyright Litigation; General Practice; Civil
Liberties
In most
cases:
WE OFFER FREE INITIAL CONSULTATION
|
| LANDLORD MUST PROVIDE SPECIAL ACCOMMODATION FOR
TENANTS WITH DISABILITY The Fair Housing Act forbids discrimination against tenants with
disability on the basis of the disability. This means, landlords
must make special arrangements to accommodate tenants with
disability.The FHA compels a landlord
to accommodate a tenant with a disability if the cost of such
accommodation is reasonable and would not unduly burden the landlord.What is unreasonable and unduly burdensome may requires legal
analysis. The landlord may consider consulting an attorney before
denying the tenant's request, since damages in civil litigation
could be very high if landlord violates the
FHA. Essentially, the tenant should have equal use and enjoyment as
compared to nondisabled individuals. No-pets provisions in leases
could be particularly troublesome in cases involving disabled
tenants. While a landlord has a reasonable interest in prohibiting
pets, where a service animal may be necessary for disabled tenants,
the no-pet provision should be modified. A strict no-pet provision
could be very risky for the landlord. Many
homeowners, eager to get their apartments occupied, are not
familiar with the obligations to the tenant and the various laws
governing landlord/tenant relations. With the high damages awards
for violation of civil rights laws, landlords should consider
consulting a landlord tenant attorney for entering into leases with
tenants.
Vivian M. Williams and
Associates
212-618-1791 |
| | Save 20% | Vivian M. Williams & Associates is offering a 25%
discount to NEW clients requesting Landlord/Tenant and Real
Estate Closing services. New or promo code, include it here. Print
and present this special coupon when requesting your discount at
initial consultation. This offer may be shared with friends and
relatives who need our Landlord/Tenant or Real Estate Closing
services. V ivian M. Williams &
Assocaites14 Wall Street, 20th Floor New York, NY 10005 Call: 212-618-1791 Attorney Advertising |
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