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News
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7/2/07 |
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Get the information you need to make wise real estate and other
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| Vivian M. Williams & Associates "THE INVESTOR" |
Newsletter
July, 2007 |
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 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 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.
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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
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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
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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.
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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
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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 |
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| 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 & Assocaites
14 Wall Street, 20th Floor
New York, NY 10005
Call: 212-618-1791
Attorney Advertising
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Vivian M. Williams and Associates | 14 Wall Street | 20th Floor | New York | NY | 10005
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