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If Your House is Worth Less Than You Owe, Let’s Talk About a Short sale

Posted by calgdasilvaon July 5, 2016July 2, 2016in Blog Posts, Front PageLeave a comment

The process of selling your house is stressful enough in a normal situation, but in the event of a short sale the process may seem completely overwhelming. First, what is a short sale you ask? Simple, if you owe more on your house that it is worth, you should consider a selling it for less than is owed. Or, perhaps you have lost your job and foreclosure is inevitable. Both of these life stressors can be alleviated by selling your house and moving on. Of course, in order to do this successfully, you need the cooperation of your lender.

Next question – why bother? Easy, a short sale has a much less negative impact on your credit than either deeding it back to the bank, or losing it in foreclosure. In other words, it is in your best interest to be proactive when you are faced with negative equity or a job loss.

First, talk about the options with us. Circumstances will vary depending on the value of your home, your lender, and any other liens on your property. In other words, do a complete evaluation of your particular hardship circumstances. Do not make the critical mistake of waiting and hoping for better days. Eventually the foreclosure notice will come in the mail.

Understand the Process

Although there is a sharp divide in both practice and opinion, we believe being represented by an attorney is beneficial in any real estate deal, but in the case of a short sale, a lawyer experienced with short sales is critical. Once a lawyer establishes you are qualified, you will complete your lenders forms and your lawyer will communicate with the bank as well as oversee the listing and sale process.

Notice that with a short sale it’s very important to talk about a short sale BEFORE you list the property. Other options exist, and they should all be explored with counsel before you list your home for amount of the mortgage balance and hope for the best. A thoughtful strategy is the most successful way to short sell your home and move on.

Make sure your real estate team knows what they are doing

In the event that you need to short sell your house, engaging a lawyer in advance of listing your home allows you to build the team to work together toward a common goal. Real estate agents with short sale experience are what you need. Not an agent acting as a quasi-lawyer. That scenario can get everyone in trouble. Short sales require a cooperative bank, a patient buyer, and a bit of luck. Experienced real estate agents will be better equipped to deal with problems as they arise and will likely be able to warn you at the beginning of the process about the most difficult parts of the process. Having a great real estate agent can also ensure you are selling your house quickly, because in a short sale price does not matter to you, only your lender.

Be Patient!

Short sales require lender approval, which often is slow to come. In the event you do have an interested buyer you will need your agent working hard on the deal, but you also need to be aware the deal may fall through if your buyer finds another property.

Understand what comes next

You attorney can not only help you through closing, they can also help you understand the aftermath of the sale. In the event a bank is willing to negotiate a release, you may be able to get out of any money you owe beyond the sale price of your property. This is essential and usually the primary reason to fully participate in the sale process. Working with an accountant or financial adviser is also something to consider to help you deal with and understand any remaining debt and/or tax consequences you may face after the short sale is complete.

If you are facing difficulties and fear foreclosure is in your future take control of the situation before it is out of control. Evaluate your options early and often. Surround yourself with qualified professionals. Give us a call at Bergmann & Good if this sounds like something you need to discuss.

All in the Family (Business)

Posted by calgdasilvaon June 14, 2016in Blog Posts, Front PageLeave a comment

Owning a family business can be one of life’s most rewarding endeavors. Not only can you enjoy success in your profession, you can also pass it along to your nearest and dearest when you choose to retire or at the end of your life. However, you also have to make sure your family business stays in the family. Here at Bergmann & Good, we strongly advocate setting up your business the right way and re-visiting those operational documents as you grow, expand or simply as time goes on (and laws and statutes applicable to your business change). Operating Agreements and clear formation documents are all important parts of owning and operating your own business, but what about the later years? If you’ve set up your business properly, you should make sure that the next generation gets the best possible chance to succeed as well. Here are a few things to keep in mind when building a succession plan for your family business:

Who is going to take over?

A business should have a clearly defined structure. If you want a family business to survive passing down to the next generation (something that statistics show is often unsuccessful) you should ensure someone is lined up and ready to take over. They should be aware of all facets of the business and understand how runs. It is also worth informing the rest of your family and your employees about who their next boss might be rather than keep it a surprise. Nobody likes a surprise.

Who is going to assume financial responsibility?

A family business can also involve members who are solely investors rather than involved in the day to day operations. Any succession plans should also involve the input of investors as they have a financial stake in the business. Any changes need to follow the rules of the operating agreement or formation documents used when the business was first established.

Is the business going to stay in the family?

If there is no one who wants to take over the business, then your succession plan could be to just sell the business and leave your family to split the proceeds. However, you should inform your family members this is your plan since selling a business can be a long undertaking. You should have a business attorney already lined up for your family to contact in the event this is your plan, that way they will have to do as little work as possible in the event of a family tragedy.

You’ve worked hard to build you family business and you’d like to have it offer opportunity and prosperity to your family and future generations. Make sure you know what is going to happen after you are no longer around to run things. Give us a call, and protect your legacy. Your Grandkids will thank you.

How to Lose Your Employment Case Before it Even Gets Started…

Posted by calgdasilvaon June 7, 2016in Blog Posts, Front PageLeave a comment

Because of their personal nature, employment cases can be very dramatic and emotional. Let’s face it, being fired is traumatic. It’s important to keep a level head and make sure you have preserved documents and not damaged your case before you’ve even begun!
Make sure you have a case:
First, and this may seem obvious, but make sure your claims won’t be dismissed because of your own misconduct. Have you stretched the truth on your resume and/or job application? Do you have confidential documents in your possession? Your lawyer can only help you if they have all the facts. The good facts, the bad facts and sometimes even the ugly facts.
Have you been presented with a separation agreement or does your employment agreement (or handbook) require disputes be resolved by arbitration? These are all crucial issues to examine at the outset. Have all your information at hand when asking an attorney to evaluate your case. Ask the difference between an agreement that requires arbitration rather than allowing for your claims to be heard by a jury. Each is a very different case. Understand the difference.
Know the process:
Employment cases have to follow very specific guidelines. State and Federal law both require all administrative remedies and procedures be completed before a complaint is filed. If your employment contract or internal procedures require you follow a grievance process prior to filing a lawsuit, then make sure you have done so. You will need a copy of your employment contract (or handbook) for your lawyer to be sure the internal administrative process is exhausted. After those avenues have been pursued, check the state and federal rules and ensure you follow the rules and regulations necessary to file a complaint with the United States Equal Employment Opportunity Commission before you file a complaint in court. And, of course, know your timelines. Employment cases have specific timelines and regulations so keep an eye on due dates and statues of limitations.
Get all of your ducks in a row:
Before you file your complaint with the EEOC, ensure you get any documentation, proof and statements you may need. This is especially important if you need any statements from employees who still work for the company. Once a complaint is filed, your client’s former employer will likely make it very difficult for you to access any current employees, but make sure all evidence collection is completely above board. You don’t want a single piece of evidence to be dismissible, or worse, open you up to liability.
Employment cases can be satisfying and if you’ve been wronged in the workplace, litigation can make things right, but these cases can be an uphill battle if you do not follow these simple steps at the outset. Be sure you have the right team on your side so you are ready for the fight!