Featured Posts
Arizona Non-Judicial Foreclosure Process (a/k/a Trustee’s Sale)
January 26, 2012 By Matt Thrasher
I recently posted some information for homeowners who are considering a short sale, deed-in-lieu or foreclosure as a way to get out of an underwater property. As I explained in my post, when it comes to foreclosure there can be different processes for foreclosing, either a “judicial foreclosure” or a “non-judicial foreclosure,” which is more commonly known as a “trustee’s sale.” Since judicial foreclosures are uncommon in Arizona, I am focusing this post on the process for non-judicial foreclosure (trustee’s sale). [Read More]
Short-Sale, Foreclosure and Anti-Deficiency Information
January 23, 2012 By Matt Thrasher
I frequently receive inquiries from homeowners with underwater properties who want to know about their options. A short sale, deed-in-lieu or foreclosure are the 3 most common options for disposing of an underwater property. Each option is a unique process with its own set of challenges. Below is some general information about each, along with some other answers to common questions. [Read More]
Wells Fargo Economic Outlook – January 2012
January 19, 2012 By Matt Thrasher
Interesting economic overview from our friends at Wells Fargo: Wells Fargo Monthly Outlook Jan 2012.
Will a Bankruptcy Prevent a Future Home Purchase?
January 11, 2012 By Matt Thrasher
A common question for individuals contemplating bankruptcy is “Will I be able to purchase a home in the future?” While a bankruptcy obviously has a negative impact on credit scores and other metrics, the long term consequences may not be as severe as commonly thought. There are federal home loan programs available even to individuals who have a bankruptcy in their past. The Federal Housing Administration (FHA) will guarantee a mortgage following a bankruptcy if (i) it has been at least 2 years since the bankruptcy was discharged, (ii) the debtor has paid any outstanding tax liens or entered into a repayment plan with the appropriate tax authority, (iii) it has been at least three years since resolution of a foreclosure or deed-in-lieu, and (iv) the debtor has satisfied all other judgments. There are even FHA mortgage programs for debtors in the midst of a Chapter 13 bankruptcy. The debtor may be able to obtain an FHA-insured home loan if (i) the debtor has completed 1 year of payments under the Chapter 13 bankruptcy plan, and (ii) the bankruptcy trustee issues a letter stating the amount the debtor can borrow for a home purchase. [Read More]
Debt of Defunct Law Firms Can Follow Partners to Next Job
January 6, 2012 By Matt Thrasher
The Wall Street Journal recently reported on an increase in cases involving bankruptcy trustees pursuing former partners for the debts of a now-defunct law firm, including suits against the new firm that the partner joins. Under the “unfinished business doctrine,” partners can be sued by a bankruptcy trustee for profits that the partner started at the previous law firm and took to the new law firm. Bankruptcy trustees argue that when the partner takes clients and ongoing matters to the new law firm, both the partner and the firm benefit financially. There have been a number of cases in which the bankruptcy trustee has been successful recouping settlements from the partner’s new firm.
Delaware Court Allows LLC Members to Opt Out of “Fair Value” Standard In Operating Agreement
January 3, 2012 By Matt Thrasher
A Delaware court recently awarded a departing LLC member the “liquidation value” of his membership interest, as opposed to the statutory “fair value.” The departing member had argued that he was entitled to fair value for his membership interest upon his resignation from the LLC. However, the LLC Operating Agreement explicitly stated that resignation or withdrawal from the LLC was not permitted. The Operating Agreement did allow for the departing member to receive payment for his membership interest equal to “net equity,” defined as the amount payable to a member upon liquidation of the LLC. As a result, the departing member was not entitled to receive the higher “fair value” for his membership interest had he departed the LLC in accordance with the terms of the Operating Agreement.
LLC members should be aware of the various retirement, withdrawal, resignation and other transfer restrictions contained in the Operating Agreement. Adherence to the terms of the Operating Agreement is often critical to ensuring that a departing member receives fair value for his or her interest in the LLC.
Wells Fargo Releases its Economic Outlook for Arizona
December 27, 2011 By Matt Thrasher
Wells Fargo has released its Arizona economic summary and forecast for 2012: Wells Fargo Arizona Economic Forecast 2012.
Understanding “Gross Up” Provisions in Commercial Leases
November 7, 2011 By Matt Thrasher
Most commercial leases contain provsions that require tenants to reimburse landlords for operating expenses. However, the calculation of the operating expenses is sometimes less straightforward that one would think. A “gross up” provision is an increase in expenses to current tenants in an office building to account for tenants who would pay for the operating expenses if the building were fully occupied. While many tenants believe that gross ups allow landlords to make a profit on operating expenses, the provision helps insure that the landlord receives full reimbursement for operating expenses, and also protects the tenant from overpaying operating expenses. [Read More]
Lapsed Employment Agreements May Result in At-Will Employment
November 3, 2011 By Matt Thrasher
There can be many benefits to entering into an employment contract, for both the employer and the employee. To ensure each party continues to receive those benefits after expiration of the original contract, it is important to draft a formal, written extension agreement, or a new employment agreement altogether. Without a written extension agreement, the employment relationship could revert to “at-will” employment, giving the employer the right to alter compensation arrangements, or terminate the employee at any time. [Read More]
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