Category Archives: Residential Real Estate

What is an “As Is” Contract?

Erica Crohn Minchella ~ Attorney at Law Posted on by

There are generally two ways to purchase a property:  (1) as a full-price contract; or (2) “as is”. A full-price contract implies that the property is in good condition or that the Seller will make most of the repairs to sell it in good condition.  Paragraph 12 of the Multi Board 6.1 contract provides that “The fact that a functioning major component may be at the end of its useful life shall not render such component defective for purposes of this paragraph”.   So not every problem needs to be addressed by the Seller.  Generally, we will find that Sellers will … Continue reading →

Real Estate and Divorce

Erica Crohn Minchella ~ Attorney at Law Posted on by

Selling a piece of real estate when a divorce is pending or imminent creates a number of different issues that happily married couples selling a property do not need to address.  If there will be an equity distribution, efforts to bring the property to its best and highest value may fall on one party or the other, and consideration must then be given for reimbursement for any additional costs. But if the property will not sell for an amount sufficient to pay off the debt, the parties need to consider the level of cooperation they need to have to assure … Continue reading →

The Perils of Purchasing Property for the Unwed

Erica Crohn Minchella ~ Attorney at Law Posted on by

While people are waiting longer to marry these days, they’re not necessarily waiting to co-habitate. And while in most cases this means splitting rent, some couples consider buying. The motivations for purchasing property for an unmarried couple are similar to those of a married one. Many are seeking to share expenses, build equity, and perhaps are driven by an emotional need for stability, etc. But what happens if the relationship goes sour, as relationships can do? With married couples the answers are, for the most part, resolved in a divorce proceeding. Not so for the unwed. For their own sake, … Continue reading →

Why Should We Extend The Tax Credit Deadline for Closings?

Erica Crohn Minchella ~ Attorney at Law Posted on by

The homeowner’s federal tax credit was a much-needed shot of adrenaline for the US housing market. For the past few months, we saw numbers on home sales go up as a direct result of the credit, and there are even more purchases that were signed before the deadline that are pending approval of lenders to close. We know that the credit was instrumental in getting desperate homeowners, unable to pay their mortgages, buyers interested in purchasing their homes. But we’re still far from recovery. Just look at what happened when the credit expired. Home sales dropped to their lowest level … Continue reading →

Some Clarity: The Health Care Bill’s Tax on Real Estate

Erica Crohn Minchella ~ Attorney at Law Posted on by

Because of the complexity and scope of the recent health care bill, there has been a wave of misunderstanding of how it’s actually going to work. Really, does anyone know how the government is going to pay for all of this? A colleague recently e-mailed me wondering if I knew anything about the provision in the bill that taxes home sales. It seems there is a rumor floating around that, as a way to pay for the plan, the bill includes a 3.8% tax on all real estate sales. If this is indeed true, it would be a major blow … Continue reading →

What Was The Impact of the Home Buyer’s Tax Credit?

Erica Crohn Minchella ~ Attorney at Law Posted on by

So this is it. Friday was the last day to have a signed contract to qualify to receive the home buyer’s tax credit the federal government had been issuing to boost home sales. It’s certainly clear that the credits have been working to boost national home sales. But is the market really turning around or are sales just temporarily inflated thanks to the incentives, which, for first time buyers are worth up to $8,000 and for other home buyers up to $6,500? There doesn’t seem to be a clear consensus to answer this question. According to a recent survey conducted … Continue reading →

Thinking and Acting for the Long-Term: Mortgage Acceleration Programs

Erica Crohn Minchella ~ Attorney at Law Posted on by

We Americans have a funny way of dealing with major purchases. When we borrow money for a home, we tend to resign ourselves to the idea that we’ll be in debt forever. It’s easier to quantify the impact of a monthly payment on our life than the interest we’ll accrue over the course of what seems like a lifetime. So we put it off and assume we’re settled in. We take on the longest payment plans we can – for mortgages and car payments – to improve cash flow – and we never get free of debt. We say we … Continue reading →

Foreclosure Defenses Part II – The Process

Erica Crohn Minchella ~ Attorney at Law Posted on by

One of the first things I try to do when beginning a foreclosure defense is to determine the expectations of my client. Some just want to buy time so they can consider their options. Others are interested in pursuing a short sale, or trying to keep their home at any possible cost. Right now, if a homeowner did absolutely nothing to defend a foreclosure, they could stay in their home, rent free for nine months to a year. If you consider that most mortgage payments average $1,200 to $2,500 per month, that could be a pretty solid amount saved over … Continue reading →

The Many Options in Foreclosure

Erica Crohn Minchella ~ Attorney at Law Posted on by

The economy has created the need for a new specialty amongst lawyers – Foreclosure Defense. With foreclosure filings up a staggering 338% in 2008 over the prior year (and with 13,196 cases filed in the first three months of 2009 alone), it is no surprise. You might wonder if there is any way to defend someone who can no longer afford to pay their mortgage. After all, if you can’t make your monthly payments, how many options could you have? Well, you have a lot more options than you might think. I’ve found that in the flurry of lending that … Continue reading →

Short Sales Explained

Erica Crohn Minchella ~ Attorney at Law Posted on by

The first client I represented in a short sale had a mortgage that adjusted and they couldn’t meet the payment. In order to prevent imminent foreclosure by the bank, it was critical that they sell the home as soon as possible, even if it meant selling below the amount the initially borrowed. This was in March of 2007 and it was the beginning of my becoming an expert on short sales. The buyer wanted to close by the beginning of the summer because they wanted to do some rehabbing during the warm months. But the bank was hesitant to take … Continue reading →