There is a case that came down that is relevant to the process of conducting a foreclosure. Thompson v. JPMorgan Chase Bank, N.A., No. 18-1559, 2019 WL 493164 (1st Cir. Feb. 8, 2019). In short, lenders and servicers were not using the precise language of the default provision in the mortgage when notifying borrowers of their impending foreclosure. The United States First Circuit Court of Appeals ruled that Massachusetts law required “strict compliance” when a lender exercises its right to foreclose. Id. citing Pinti v. Emigrant Mortg. Co., 472 Mass. 226 (2015). So what does that mean for the buyer or subsequent owner of a foreclosed property?
If you are buying a bank-owned property, before spending any money, confirm with the bank if they are compliant with Thompson v. JP Morgan Chase. Your attorney and title insurance underwriter will review the notices that were sent against the default provision contained in the mortgage. If the notice is not identical, the foreclosure may be deemed invalid. If the lender has complied with the requirements of Thompson, then the transaction will proceed as an ordinary bank-owned purchase.
Overall, It is clear that Thompson is a case where if you are looking to buy a bank-owned property it slows the process down quite a bit. With that, it halted a lot of purchases. If a closing was derailed because of Thompson, we can help you. Call us at Stiles.
\If you have any questions about buying a bank-owned property, contact Stiles Law by calling (781) 319-1900.
Attorney Brian Lynch and Mark Stiles are back to discuss issues related to small businesses.
In video one, Brian and Mark discussed the different corporate structures that are available. In video two, they discussed two common structures: corporations and limited liability companies. In this video, Brian and Mark discuss some of the other documents that you may need to start your successful small business.
Many small business owners need agreements between owners or key employees. These agreements dictate the relationship between the parties. For instance, many agreements include provisions handling owners or key employees who are leaving. Some dictate whether the company or other owners can purchase the departing owner’s share.
Next, most small businesses have documents that deal with employees and contractors. Perhaps there is proprietary information that an owner does not want to be disclosed to third parties—a non-disclosure agreement may be in order. Perhaps an employee or contractor will be privy to information that would make a non-compete agreement appropriate.
Finally, many businesses will have relationships with vendors. Having contracts in place helps to make this relationship more predictable and stable. Some common agreements include: master service agreements and end user agreements. Most importantly, these agreements lay out the expectations and requirements of both parties.
If you have any questions about starting a business, contact Stiles Law by calling (781) 319-1900.
In last week’s video, we discussed starting a new company and all of the entities that you have to choose from. This week, we are going to focus on limited liability companies (LLCs) and corporations.
Corporations are owned by shareholders. The shareholders elect a board of directors who make high level decisions. The board of directors also appoints officers who handle day-to-day operations of the corporation. LLCs are owned by members. The members can operate day-to-day operations; however, the members can nominate a manager to handle day-to-day operations.
Both corporations and LLCs can be treated identically for tax purposes. A so called “S-Corp” designation will result in the owners, whether shareholders or members, being taxed individually. This is often called “pass through” taxation. A “C-Corp” designation will result in the corporation being taxed as a separate entity. C-Corps are often used for a corporation that intends to seek financing or venture capital.
If you have any questions about starting a business, contact Stiles Law by calling (781) 319-1900.
Stiles Law has a question for you this week: What’s your 2020 vision? Are you thinking about starting your own business? Brian Lynch, our business attorney, is here to discuss the different types of structure a new business should consider.
The first is Sole Proprietorship, which means conducting business in your own name. The second is General Partnership which entails two or more people working together. LLC, an abbreviation for Limited Liability Company, is the third; and the fourth is a Corporation.
There are four main business structures: sole proprietor, partnership, limited liability company (LLC), and corporation. An entrepreneur may choose to structure their business as an LLC or corporation over sole proprietorship or partnership to shield personal liability from the activities of the business. In other words, creating a separate entity can protect personal assets from the debts of the business. Creditors of sole proprietors and partnerships are able to satisfy debts by seeking personal assets of the owners.
The first step to establish a corporation or LLC is assembling a team to develop a strategy that will work best for each member. The second is to have an attorney properly draft documents and file paperwork with the state. The third is ensuring you have a good accountant as there are a number of important tax considerations.
If you have any questions about starting a business, contact Stiles Law by calling (781) 319-1900.
What is a gift that you can give to a loved one that provides security for their future? Estate planning. Planning for the future and the inevitable may be difficult but assuring that everything is in order for you and your family can only alleviate stress and lift the weight off your shoulders in the long run. Often, after planning their own estate, people will ask how they can get their adult children in to do the same. There may be no better way to get their foot in the door than by paying for their estate plan, even if it is just a portion. Getting the ball moving may give them the motivation to do it.
This gift works in the inverse as well, young adults may gift their mother and father with estate planning so that they recognize that they need to be prepared for when the inevitable comes.
If you have any questions about estate planning, contact Stiles Law by calling (781) 319-1900.
