Tuesday, December 24, 2013

Foreclosure Hearing Park Sterling Gaston County NC

The following is a summary of a foreclosure hearing that McGrath & Spielberger assisted a borrower with, and is provided for informational purposes only.

Mortgage Loan Servicer / Foreclosing Bank: Park Sterling

Distressed Property Address (City): Gastonia, North Carolina

Type of Distressed Property: Primary residence

Date of Foreclosure Hearing: December 17, 2013

Location of Foreclosure Hearing: Gaston County, NC

Bank’s Foreclosure Trustee: Authurs & Foltz, LLP

Borrower’s Attorney: Jason A. McGrath

Actions Taken by McGrath & Spielberger on Behalf of Borrower (Specifically in Relation to the Foreclosure Hearing): Motion to Continue Foreclosure Hearing filed, Attorney McGrath attended hearing for client.

Foreclosure Hearing Outcome: Borrower’s Motion to Continue granted, foreclosure hearing rescheduled, foreclosure avoided.

Is your mortgage loan GSE? The answer can impact loss mitigation and foreclosure.

Is your mortgage loan GSE? The answer can impact loss mitigation and foreclosure.

HUD Seal

As an attorney who represents distressed borrowers, I realize that many homeowners do not know who “owns” their mortgage loans. Many borrowers assume that the bank which originally lent the money is the owner of the loan; however, a large number of mortgage loans are owned by Government-Sponsored Enterprises (“GSE”), such as Fannie Mae or Freddie Mac. These are called "GSE loans". 

How does a loan become GSE? Typically, a private bank will lend to borrowers and then Fannie or Freddie will purchase the mortgage loan from the original lender. Borrowers are not necessarily notified of this transfer of ownership, and thus many are never aware that their original lender is no longer the owner of the loan note. Within the industry, the owner of a mortgage loan is often referred to as "the investor" even if the owner is not an entity that most of us would think of in that way. 

Does GSE vs. non-GSE play a role in whether struggling homeowners lose their homes due to foreclosureRules for loss mitigation are often different for GSE loans vs. non-GSE loans. Having a Government-Sponsored Enterprises loan could make you more likely to be foreclosed on and even be foreclosed upon more quickly. On the other hand, if your loan is GSE, there are mortgage relief / mortgage loan modification options which may be available to you which are not available to persons whose loans are owned by private banks, investors, etc. 

The bottom line is that the availability of mortgage loan modification programs and the guidelines for loss mitigation programs may differ for GSE versus non-GSE loans, and the rules pertaining to foreclosure can be different as well. The more educated you are on this topic, the better equipped you are in your quest for a successful outcome. The links above provide additional information for those who would like to know more, and of course there are many more resources available. We do provide foreclosure avoidance and mortgage relief services to borrowers in the states listed below. 


Wednesday, December 4, 2013

The Number One Problem for Small Limited Liability Companies

The #1 Legal Problem for Small Limited Liability Companies

McGrath and Spielberger represents small & medium-sized businesses and their owners. 

Business Owners Do Not Always See Eye to Eye

 The number one problem for small limited liability companies, based on McGrath & Spielberger's representation of small businesses and their owners, may be the lack of an Operating Agreement, also referred to as an "OA". Here are three examples of common situations in which the lack of an OA can be devastating to a limited liability company and its members.

1) The members have a disagreement that they cannot resolve, but there is no OA that sets forth the agreed upon method of settling such disputes. 
2) One member isn't contributing properly to the LLC but there is no OA which establishes the consequences of failing to act in the company's best interests.
3) The LLC, or at least some members, want to add or remove members, but there is no OA setting forth whether the company can do so and how.  

We create LLCs for clients, we prepare customized Operating Agreements for LLCs, and we generally provide the types of legal services that small to medium sized LLCs want and need. Of course, while we appreciate the business, we find it unfortunate that so many companies (and their owners/members) have had to come to us to ask for legal services and representation due to the lack of an OA. Had those same business owners hired a qualified attorney earlier in time, the lawsuits may have been avoided. We understand that everyone is very busy, and that it can be difficult to set aside the time and resources needed to get your company properly set up, but do you really want to risk endangering the business you've worked so tirelessly to create? 

Any of the three scenarios above can lead to the LLC members reaching an impasse, can increase the likelihood of a lawsuit, and may ultimately cause the LLC to be dissolved. Even if the situation doesn't get quite that bad, failing to set up the rules by which the LLC will be governed can result in wasted time, energy, and money, resources which should and would otherwise be dedicated to further building the company and increasing its chances of success. 

If an LLC does not have an Operating Agreement, the state's Limited Liability Company Act will generally control. However, most states' LLC Acts are very basic; they may not address the situation you find yourself in, or it may be that you simply don't want the generic default rules to be the ones which apply to your company, which has its own specialized needs. 

In this regard, a limited liability company is like most other things in this world: if you do it right from the ground up - which takes a little extra effort - you can create something which is built to last and to whether life's storms.