This article summarizes the very recent discussions on what is now a viable alternative for many homeowners
Strategic Mortgage Default – A Viable Option?
January 22nd, 2010Commercial real estate’s problems: Beyond any rescue?
November 20th, 2009The U.S. government has pulled off a lot of bailouts recently, but in the deepening problems of commercial real estate, it might have met its match. It increasingly looks as if the government might have to just stand by and let bondholders and banks take huge losses on the nation’s $3.4 trillion of deteriorating debt secured by commercial properties. The problem starts with voters. When it comes to wooing votes, giving a helping hand to bondholders doesn’t work nearly as well as trying to keep families from losing their homes to foreclosure. The Wall Street Journal (11/19)(Subscription may be required)
Commercial property optimism said to be boosting banks
November 18th, 2009The word among the panelists on CNBC’s “Word on the Street” program was regional banks are gaining because the picture is brightening in the commercial real estate sector. Commercial property has a disproportionate impact on regional banks because they have significant exposure to commercial mortgages. The successful CMBS offering by Developers Diversified Realty was offered as evidence that “REITs are able to refinance.” 
CNBC
Shopping center REITs report third-quarter increase in leasing demand
November 18th, 2009Shopping center REITs reported an increase in leasing activity in the third quarter. “I think we saw signs of stabilization. Sequential occupancy increases were somewhat encouraging,” said Robert McMillan, an analyst with Standard & Poor’s Equity Research Services. “Some of the big-box space that has been vacated is being leased, so once demand picks up, that should help pricing.” RetailTrafficMag.com
Arizona trailing almost all other states in economic health….
October 27th, 2009Last week, the nonpartisan Rockefeller Institute issued their latest report on the economic health of the fifty states and the news wasn’t good. Over the past year, Arizona has seen its personal income tax collections drop by 45% — a record that indicates how much poorer Arizonans have become. Only one state has fared worse. And no state in America has lost a higher percentage of its jobs than Arizona. Read more…
Economy and Market Going to Blast Off from Here, Altucher Says
October 27th, 2009The economy is recovering nicely, says James Altucher, managing director at Formula Capital, and 2010 is going to be a huge year. Read More….
Commercial real estate is weakest sector in Fed’s Beige Book
October 24th, 2009Weak or deteriorating commercial real estate markets were reported by all of the Federal Reserve’s 12 district banks, according to the central bank’s latest Beige Book. The Fed’s regular anecdotal report found that the overall economy is still plagued by weakness in banking and increasing unemployment. Among the few bright spots in the report were observations of “stabilization or modest improvements” in manufacturing and housing.Bloomberg (10/21) , Google/The Associated Press
Commercial property faces hard times, not Armageddon
October 24th, 2009Robert Bach, chief economist at Grubb & Ellis, is one of many industry experts who reject the contention commercial real estate’s problems could bring down the entire financial system of the U.S. “These problems are focused in regional banks and the Federal Deposit Insurance Corp. has a tested method of shutting those down on Friday and opening them on a Monday under the auspices of a bigger bank,” he said. “These are not too big to fail banks. I don’t see [commercial real estate] as an unmitigated disaster. I see it as a repeat of what happened in the 1990s. …” The Business Insider
Estate Planning for Business Onwers
October 22nd, 2009This article will look at some of the issues that the clients and the lawyers should discuss if one wants the business to continue after the death. Before one meets with the lawyer to plan the estate he should sit down with the beneficiaries to try to answer some critical questions, including how the business will be operated in the immediate aftermath of the death. Customers, bankers, suppliers, competitors, and predators are all very interested in what will happen with a business immediately after the death of the owner and president. Loan documents, franchise agreements, and other legal contracts often contain termination or re-negotiation clauses in the event of the death of the majority or sole business owner. One should make sure that the new leaders specified in the plan for succession are specifically granted authority to make decisions concerning the business immediately after the death or disability. If one wants the business to continue in the family, the plan should provide a legacy for children and future generations after the death or disability. At the same time, it must adequately address financial needs of a surviving spouse.
Chapter 13 Eligibility
October 22nd, 2009Only individuals may file for Chapter 13 bankruptcy. Corporations and partnerships may not file for Chapter 13 bankruptcy. Any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief as long as that individual has regular income greater than reasonable living expenses, has unsecured debts not exceeding a certain sum, and has secured debts not exceeding a certain sum.
To determine whether an individual is eligible for Chapter 13, the debtor’s total secured debt must be known. There are well known secured debts such as home mortgages, home equity lines of credit and car loans. These are all liens created by agreement between the debtor and the creditor that are embodied in a legal agreement.
There are several other kinds of debts that are secured by liens on the consumer’s property, sometimes without the consumer even realizing it. For instance, there are purchase money security interests, which are lien rights that the seller retains in the goods purchased when the seller finances the purchase. If the buyer discharges his or her personal liability on the debt through bankruptcy, the seller retains the right to reclaim the goods. Many credit plans give the seller a security interest in the goods purchased. Other types of secured debts are judgment liens, tax liens, and blanket security interests.
An individual cannot file under Chapter 13, or any other chapter, if during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court. Additionally, an individual cannot file under Chapter 13 if a prior bankruptcy petition was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.