Friday, March 6, 2009

High Stakes

Most people would rather not think about what would happen if they were to die.  We all suppose that we are somehow immortal. This is true in good times as well as unjust times. 

But, good times or unjust times, we all owe it to our family and those who care for us to ensure that when the inevitable happens, that we have taken at least the basic steps to ensure a smooth transition to the next generation.  

Even if you have little or no property, such planning is always important. In Iowa, as well as most states, there are at least four items that you should have a lawyer draft for you.  They are: (1) a will; (2) a living will and durable power of attorney for health care decisions; (3) a general power of attorney; and (4) a final disposition declaration. Depending on the nature of your estate, you may also want to consider utilizing a revocable living trust.  Although samples of these documents can be found on the internet, you should never undertake to put these into effect without at least consulting an attorney.  The stakes are simply too high to try to save a few dollars at the out set.  During my career I have seen too many cases where individuals tried to save money at the beginning only to have their family pay much more money at the end.

© Rod Powell

Thursday, March 5, 2009

Keeping Shelter

Hard economic times usually means that people have to struggle to keep a roof above their heads.  Often times families must move in together as it becomes harder to pay the rent or homes go into foreclosure.  

Every time I go the the Warren County, Iowa, courthouse in Indianola, Iowa, I am struck by the increasing numbers of sheriff's sales posted on the wall.  A few years ago, the sheriff's sale notices only occupied a small portion of one large bulletin board.  Now the notices occupy over one full bulletin board.  Each of those postings represents a family that is forced to seek shelter elsewhere.  What began as inflated mortgages on overpriced homes now threatens to spiral to suck in middle class homeowners who are seeing a loss of earning power, or even the loss of their jobs.  The financial industry is realling under the pressure of an ever increasing default rate.

While the laws differ in each state, there are clear approaches that people facing foreclosure should explore:

•  Gather your mortgage documents and read them.  They are usually lengthy and often confusing to nonlawyers.  Often the loan officers who presented them to you did not understand them themselves.  Nevertheless, read them and list questions to ask a lawyer later.

•  The Iowa foreclosure statute provides that you can request a delay of sale of up to six months after an judicial decree of foreclosure is entered. You may want to request that this notice be entered on your behalf.  You never know what may come up.  One of my clients did not see any hope, but had me do this for them anyway.  Later, within that period, one of the spouses learned that an inheritance would be forthcoming and I was able to negotiate an arrangement whereby they could remain in their home and resume payments.

•  Occasionally there have been misrepresentations by the mortgage lender.  Under these circumstances it may be possible to make claims against the lender and prevent foreclosure.

Even if you are strapped for cash, it may be a good idea to at least seek the advice of an attorney who is familiar with representing homeowners in foreclosure situations.  While not having enough money is at the root of the problem, at least one consultation with the attorney may be a good idea.  Sometimes the attorney has a cut rate initial consultation fee policy.  For instance, our office only charges $95 for up to a 45 minute consultation.  During that some, if you have come properly prepared, we can usually determine a possible route for you to follow.  There are many other lawyers who have similar policies.

© Rod Powell