Have you heard the term “underwater” as it relates to your home? This means that you owe more than the home is worth. This is where a short sale becomes a viable option.

A short sale is when a lender agrees to sell your property for less than what you owe on the mortgage. When foreclosure seems to be inevitable a lender will often agree to a short sale so they do not have to go through the expense of foreclosing and then maintaining the home until it can be sold again.

What does a Seller need to know?

All short sales need to be approved by the lender. Lenders will usually grant short sales for two reasons. The Seller is experiencing a hardship and there is not enough equity in the home to payoff the mortgage after paying the costs of a sale. Hardships can include unemployment, a medical emergency, divorce, reduced income, death or bankruptcy.

As a Seller you must provide a financial package to the lender so that they can either approve or reject the short sale. Although the package submitted varies from bank to bank, in general it will include:

•             A preliminary closing statement
•             A completed financial statement
•             A hardship letter from the seller
•             Two years of tax returns
•             Two years of W-2s
•             Two months of bank statements
•             30 days of payroll stubs
•             A letter authorizing your agent to speak directly to the lender
•             A comparative market analysis

Remember that even though you receive approval for the short sale, the lender can change its mind in the middle of the process.

What does a Buyer Need to Know?

You need to know what other properties have sold for in the neighborhood. You will submit an offer based on those comparable sales in order to prove to the lender that you are not too far off from market price. Once the Seller accepts the offer, your real estate agent will forward all required documents to the lender for approval.

The short sale process will be delayed if the package is incomplete so it is important to have an experienced realtor as well as an experienced attorney. They must stay in contact with the lender to keep them accountable and to try and receive short sale approval in a timely manner

The process can take up to 6 months, so it is important to know whether you, as the Buyer, have the patience for this form of sale. Once Seller receives short sale approval letter, the closing often must occur in a few weeks. Buyers should have their loan approved and be ready.

What happens after the closing?

Once the home is sold a lender can get a deficiency judgment following a short sale. In other words you are still liable for the Note. A deficiency judgment is in the amount of the remaining debt on the property that was not forgiven by the bank.

What a Seller must look for in the final short sale approval letter is language stating that the lender waives its right to the deficiency. If the short sale agreement does not contain this waiver, the lender may file a lawsuit to obtain a deficiency judgment.

You need to have the right people on your team in order to navigate through this complex process. It is imperative that you have a knowledgeable Monmouth County real estate attorney on your side.

The post SHORT SALE? WHAT YOU SHOULD KNOW. appeared first on Pilling Law.

Securing the right to marry was relatively swift, although to many it seemed that the legal wrangling was similar to walking through quick sand. Many gay and lesbian adults will tell you that when they first experienced same-sex attraction, they were certain that they would never be able to have a legally, publicly sanctioned relationship. Then, in 2003, Massachusetts became the first state to legalize same-sex marriage. Twelve years later, marriage equality became the law of the land.

With that law came tremendous changes for people who were in committed relationships with another person of the same sex. American citizens who were in relationships with non-citizens could secure immigration status. Gay and lesbian parents no longer had to undertake the humiliating process of legally adopting their own (non-biological) children. Partners would not be denied hospital-visitation rights. A great financial burden was lifted for many couples: people could add their partners to their health-insurance plans, couples could file joint federal tax returns, and surviving partners wouldn’t have to pay backbreaking taxes on money or property they inherited from their partners.

However, as with most significant change, there comes a backlash:

• A variety of “religious freedom restoration acts” that effectively sanctioned anti-LGBTQ discrimination were enacted. One, signed in 2015 by Mike Pence, who was then the governor of Indiana, was the so-called “religious freedom” bill. In essence that bill gave business owners the right to refuse service to LGBTQ customers by basing such refusal upon the business owner’s religious beliefs. Because of the uproar made by numerous companies and organizations the law was amended to “ensure” there would not be discrimination based upon sexual orientation and gender identity.
• In 2016, North Carolina passed a so-called “bathroom bill” which required people to use the bathroom designated for the sex they were assigned at birth.
• President Trump reversed President Obama’s policy that transgender Americans could serve openly in the military as well as obtain funding for gender re-assignment surgery. The Supreme Court, in overturning a lower court ruling, allowed the ban to go into effect while the legal fight continues.

The Federal courts have been divided on the question of whether Title VII (a federal law that prohibits employers from discriminating against employees on the basis of sex, race, color, national origin and religion. It generally applies to employers with 15 or more employees, including federal, state and local governments) bars discrimination based on sexual orientation or gender identity. However, the highest court in the land could soon decide this division once and for all.

The Supreme Court recently announced that it would hear three cases that seek to determine whether existing federal law bans workplace discrimination on the basis of sexual orientation and gender identity. These cases are schedule for this fall. Many, however, think it unlikely that the court’s conservative majority will find that Title VII of the Civil Rights Act of 1964, under its provisions prohibiting sex discrimination in the workplace, protects LGBTQ employees.

Two of the cases that the Supreme Court plans to take up are cases of employment discrimination on the basis of sexual orientation.

Bostock v Clayton County:

This case involves Gerald Bostock, a gay man, who worked as a child welfare services coordinator for Bostock County. During his 10 years of service he received positive performance evaluations. In 2013 Bostock began playing in a gay recreational softball league. Shortly thereafter Bostock received criticism from co-workers for his participation in the league and for his sexual orientation. Around the same time, Bostock was informed that the County would be conducting an internal audit of the funds that he managed. Shortly afterwards, the County terminated Bostock alleging “conduct unbecoming of its employees.” Bostock filed a lawsuit in 2016 alleging discrimination based on sexual orientation under Title VII. The district court dismissed his lawsuit in 2017. He appealed to the 11^th Circuit where the judges agreed with the lower court and ruled that Title VII does not cover sexual orientation.

Altitude Express v. Zarda:

Donald Zarda was a skydiving instructor for a Long Island, New York company. Part of his job was to participate in tandem skydives with clients. Because he had to be strapped closely to the female clients he would, at times, tell them that he was gay to assuage any concerns about being strapped to a male. On one occasion Zarda told a female client that he was gay and then performed the tandem jump. The female client alleged that Zarda had touched her inappropriately and had disclosed his sexual orientation to excuse his behavior. In response to the client’s complaint, the company fired Zarda although Zarda denied touching the client. Zarda filed a lawsuit in district court alleging a violation of Title VII by terminating him because of his sexual orientation. The district court ruled in the company’s favor finding that Title VII does not protect against discrimination based on sexual orientation. On appeal the 2^nd Circuit ruled for Zarda holding that Title VII’s prohibition on discrimination because of sex necessarily includes discrimination because of sexual orientation.

R.G. & G.R. Harris Funeral Homes v. EEOC and Aimee Stephens:

The third case, from Michigan, concerns a transgender woman who was fired from her job at a funeral home because of her gender expression. Aimee Stephens worked for six years as a funeral director and received great reviews. Her boss and co-workers knew her as a man, but she always knew she was a female. In 2013, Aimee came out to her boss as the woman she is. Her boss fired her making it clear it was because she was transgender. The court in the Sixth Circuit ruled that she was protected by Title VII.

These cases raise the question of discrimination against gay, lesbian and transgender workers. A decision in the challengers’ favor would certainly mark an important step in the effort to protect the LGBTQ community from discrimination in employment, housing ad public accommodations. However, as currently constituted, the Supreme Court could likely rule that the Civil Rights Act does not ban discrimination against LGBTQ people. This would be the kind of legal backlash that could take a generation to undo.

If the Supreme Court decides that it is acceptable to fire someone because they are lesbian, transgender or gay, other federal civil rights laws may not protect LGBTQ people, either. For example, the federal education anti-discrimination law may not stop schools from harassing transgender students. The Federal Housing Act may not stop landlords from evicting same-sex couples.

Think about your workplace. Are you a valued member because of how you perform your job? Do you get demoted or fired because you don’t look like the rest of your co-workers or because of whom you love? What a travesty it would be to have workers judged on their identities instead of their performances. Think about it.

The post LGBTQ Update….What to expect from the Supreme Court on LGBTQ discrimination in the workplace. appeared first on Pilling Law.

The “D” word is a scary one. However, when contemplating a divorce whether it be because you are unhappy or your spouse has told you that he or she is, you cannot simply hide your head in the sand. Such a reaction can have really, really bad consequences. What you need is the knowledge of how you can get through this process. You, of course, should contact a knowledgeable attorney to discuss everything, but here are some things you can do right now.

What should I bring to my attorney?

First things first, you should try and assemble all of the information your attorney will need in order to represent you. What does this mean? Well, start gathering the following and remember this is not a finite list, there may be more items you can add:

1. Bank account balances;
2. Investment account balances;
3. Inventory of any stocks, bonds, mutual funds;
4. Value of any personal property
5. Value of any real property that is owned, including vacation property;
6. Balance of any mortgages or home equity loans;
7. Values of any vehicles, boats, etc.;
8. Balances of any loans against any vehicles, boats, etc.;
9. Balances of any credit cards and any other debts;
10. Retirement account information;
11. Monthly expenses, which includes home and transportation costs as well las monthly personal expenses for the family;
12. If either party owns a business, bring in information to the attorney to help determine its value;
13. Information about each party’s earning history and capacity;
14. Any pre-marital agreements.

How do I become better prepared?

Aside from gathering the items in the above list you can also take action to be better prepared when you decide to move forward:

1. Become educated on how the divorce process works by going to an attorney for a consultation;
2. Start saving your own funds;
3. Have a game plan as to what you want from the divorce;
4. Remember that everything you post on social media is fair game during the divorce process so you may want to take a break;
5. If there are children involved start thinking about parenting time and custody;
6. When you talk to an attorney be honest;
7. Keep an open mind.

If you are in the initial stage of “just thinking about a divorce” you should speak to an attorney. The divorce process can be overwhelming. There are many court forms that have to be completed, court appearances and a specific process in order to ask the judge to do something in your case. You can certainly get a better picture of how this process works by setting up an initial consultation with a divorce attorney. The initial consultation will be informative and comforting. You will at least have your questions answered and be armed with the information that will help you if you do decide to move forward.

Remember, knowledge is power.

The post DIVORCE: The scary “D” word. What can you do…. appeared first on Pilling Law.

1. HIRE A KNOWLEDGEABLE AND EXPERIENCED REAL ESTATE ATTORNEY. This is probably the biggest purchase of your life. Don’t you want to be protected legally should anything go awry?  If you want peace of mind you should consider contacting me.

2.  Explore your mortgage options and down payment options:

There are many of different types of loans. Conventional mortgages conform to standards that are set by government sponsored entities such as Fannie Mae and Freddie Mac. These mortgages require as little as 3% down. FHA loans are through the Federal Housing Authority and allow down payments as low as 3.5%. VA loans are those guaranteed by the Department of Veterans Affairs and sometimes require no down payment.

You can put down a higher down payment which will give you a lower monthly mortgage payment.

There are different lengths for each mortgage. If you want the smallest mortgage payment possible, you can opt for a 30-year fixed mortgage. If you can afford a larger monthly payment, you can get a lower interest rate with a shorter term, such as a 15 or 20 year loan. You can also choose an adjustable rate mortgage which is riskier but offers a low interest rate for the first few year.

You can use a mortgage calculator to determine which mortgage is right for you.

3. Check your credit and try to avoid any new activity:

When you apply for a mortgage loan your credit is one of the main factors determining whether you will be approved. Your credit will help determine your interest rate and possibly the loan terms. You should check your credit before you begin looking for your home. Dispute those charges that you disagree with as those could be dragging your credit down. You may want to try and pay down your outstanding debt as this will help improve your credit. In order to keep your score static after applying for your mortgage, avoid opening any new credit cards or applying for other loans.

4.  Pick the right realtor:

You will be working closely with your realtor so you want to make sure he/she is the right fit. Is he/she knowledgeable about the area, is he/she motivated, does he/she listen to your requests?

5.  Do your research when it comes to the neighborhood and the type of home you want:

Will you like to live in the neighborhood? Check out the schools, drive through the neighborhood, check the crime statistics. Do you want a single family home with a yard? If you want less maintenance maybe a condominium or a townhouse is the way to go. Explore your options

6.  Go to a lot of open houses:

Make sure you see a lot of different homes before making up your mind. Pay attention to what you see and make notes on each house so you can compare them later. Pay attention to the overall condition of the home. Will the home need a lot of repairs, can you afford that?  Do not be afraid to ask a lot of questions about the home such as when it was built, how old the appliances are and how old the air conditioning and heating systems are. If other people are viewing the home and you are unable to ask your questions, schedule another visit so you can ask them privately.

As a first time home buyer you want to make sure you will get to the closing where you will actually get the keys to your new home. I will help you get there!

The post TIPS FOR FIRST TIME HOME BUYERS appeared first on Pilling Law.

For the last 75 years alimony has been deductible for the payer and taxable to the recipient. Thus, the recipient has paid income taxes on the alimony received. This all changed as of December 31, 2018. Under the Tax Cuts and Jobs Act (TCJA) alimony is no longer deductible for the payer and taxable to the recipient.

The changes are likely to bring in less money for the recipient. Why? Because the payer will have less money from which to pay without the deduction.

Example

In the following example I have used ex-husband as payer because in a majority of the cases that is the case. In an agreement drafted prior to December 31, 2018 a husband who earned $500,000 per year may agree to pay his wife $100,000 of alimony per year. He would receive the deduction and actually only be paying about $50,000 to his ex-wife. His ex-wife would be receive approximately $75,000 after taxes.

Now, because of the TCJA, a husband might argue that he can only afford to pay his ex-wife $50,000. Why? Because he will not receive the deduction. His ex-wife may not agree because she will receive $50,000 which would be $25,000 less.

Application

The TCJA will apply to those marital settlement agreements executed after December 31, 2018 and those agreements modified after that date if the modification specifically states that the TCJA treatment of alimony payments now applies.

Your Monmouth County divorce attorney can help you become educated and apprised of the impacts that the new tax changes and how they can affect your divorce. Contact me.

The post How The 2019 Tax Changes Will Affect Your Divorce appeared first on Pilling Law.

At the age of 46, T.D. was diagnosed with Stage IV incurable breast cancer.  As a result of the diagnosis, the father (A.W.) brought a motion to transfer custody.  T.D. opposed the application and stated that she had family members who could provide her with physical, financial and emotional support.  T.D.’s treating doctors testified that although her prognosis was terminal, T.D. was presently stable and her judgment was not impaired by any of her medications.

The Judge denied A.W.’s motion by applying long standing principles of New Jersey law wherein the non-custodial parent who seeks a change in custody has the burden of  proving that the potential for serious phsycological harm accompanying such a move would not become a reality.  In this case, the Judge took judicial notice that the pending death of a parent is one of the most traumatic events in a child’s life and that these children needed to spend as much time as possible with their mother.   The Judge concluded that A.W. failed to consider the children’s emotional needs and did not include any plan for how he would provide the children with “substantial continuing access” to their mother were he awarded custody. Finally, the judge determined that although A.W. had not met his burden of proof, should T.D.s condition materially worsen either she or a relative must inform A.D. so he can be prepared to assume custody on relatively short notice.

We have all experienced bad decision making by judges, especially in in the Family part.  Here, this judge got it right and should be commended, especially given the difficult circumstances in this case.

The post In The Best Interests Of The Kids appeared first on Pilling Law.

Patient:  “No”

ER Attendant:  “Do you have a health care proxy?”

Patient:  “No”

While sitting in the waiting room of the Emergency Room the other night I heard this same interaction approximately 15 times. Although there were different patients, their answers remained the same.  This got me thinking that you all need to know how important these documents are.

It is so important that we protect ourselves especially in emergencies.  Remember the old adage; always wear clean underwear in the event of an accident.  Well I’m here to tell you that you should all have a living will and a health care proxy. 

Now for the legal part of this post:

What is a living will?  In simple terms, a living will is a written statement of an individual’s wishes regarding the medical treatment that person wishes to have or not have in the event that person becomes unable to make medical decisions.  Such inability to make medical decisions can be as a result of an accident, illness or advanced age.  A living will is also known as an advanced directive for health care.

What is a health care proxy directive?  A health care proxy directive is also known as a Durable Power of Attorney for Health Care for the Appointment of a Health Care Representative.  This document allows you to appoint an agent who is empowered to make health care decisions for you in the event you are unable to do so.  Generally you assign someone that you know well and trust to carry out your directives.  You should make sure to ask this person if they agree to act as your agent.  It is important that this person be assertive and calm under pressure, as he/she may have to make some very difficult decisions.

Why should I have a living will and health care proxy directive?  In the event you become disabled and are unable to make your own decisions, don’t you want your wishes about the kinds of medical treatment you do or do not want to receive to be carried out.  In the event you do not have a living will and health care proxy directive, those important decisions can be left up to estranged family members, doctors or sometimes even judges, who may know very little about what you prefer.

Are living wills and health care proxy directives legal?  Yes.  New Jersey Statute 26:2H-54 (1992) specifically authorizes an individual to execute an Advance Directive, and to appoint another as proxy for health care decisions. Advance Directives are recognized in all 50 states.

When these documents are drafted you should provide your family members, friends and doctors with copies.

If you do not have these documents, contact me so I can help you be prepared.

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