Law Office of Angela Barker LLC' Newsletter
A Family, Real estate, and Elder Law Newsletter April 2007

In This Issue

Divorce and Personal Finances

Why A Reverse Mortgage Is a Good Thing For the Elderly.

Questionable Lending Forces Families From Homes


 

Divorce and Personal Finances
couple fighting

When couples decide to separate or divorce, it is often wise for both to conduct a careful review of their joint finances early in the process. Understanding credit and ownership of real and personal property can save money and time later on.

Each marriage is unique. There are a number of important first steps that each spouse should consider taking. The most common usually include the following:

1) The couple should close and pay off all joint accounts;

2) Both spouses should open individual checking, savings, credit card, brokerage and other accounts;

3) The couple should review all owned property to understand the full extent of their assets and responsibility for financial liability;

4) Each spouse should obtain a credit report;

5) Each spouse should obtain a report of all retirement accounts, including 401k and IRA accounts;

6) The following needs to be considered as the divorce draws to a conclusion:

a) rewriting a will;

b) selling the home;

c) changing beneficiaries on life insurance policies;

(d) arranging health coverage continuity; and

(e) reviewing retirement and estate planning.

Please note: Now is not the time for a spouse to withdraw money from joint accounts without the permission of the other spouse. This act will just add to the acrimony that is common in divorce proceedings and the spouse will often have to replace the money.

Contact Us to Find Out More About Family Law



Dear Reader,

It's Spring Time! I love new green. I love the songs of birds signing all day, and sometimes even into the night. Spring reminds me of my childhood when I couldn't wait for it to be warm enough to run and play in the park every day after school. The first cookout of the season is always so exciting! I just got back from a Family Law Conference in Puerto Rico where I presented a paper on Child Support Issues. Boy, I can't wait until it is as warm here as it was there.

Springtime is definitely the time for doing housekeeping!! We at the Law Offices of Angela Barker LLC can certainly help you get your home in order! We are committed to help ease the transition through the various life stages: whether it be a family addition through adoption; or a change in the family structure as a result of a marriage, divorce, or separation. We are there for you as you buy or sell your home, and we assist our clients in planning for their or their loved ones' golden years. People are our business. For the benefit of our clients and the communities we serve we have developed this newsletter as a legal and consumer resource. Enjoy.


  • Why A Reverse Mortgage Is a Good Thing For the Elderly.
  • black old couple

    You've reached your golden age! Your home is paid for, the kids are grown and out of the house and you are ready to start living the good life. Along with tapping your 401k and other retirement accounts to fund your retirement, have you considered a reverse mortgage? If you own your home outright and are 62 years or older, a reverse mortgage may be a good thing for you.

    A "reverse" mortgage is a loan against your home that you do not have to repay for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:

    All at once;

    In a single lump sum of cash;

    As a regular monthly cash advance;

    As a "creditline" account that lets you decide when and how much of your available cash is paid to you; or

    As a combination of these payment methods.

    No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home.

    Contact Us To Find Out More!
  • Questionable Lending Forces Families From Homes
  • Owning a home is the American dream and over the past few years a record number of Americans were able to purchase their homes. Many of those recent homeowners are now seeing their dreams turn into nightmares. They have bought more house than they can afford and are facing foreclosure and a ruined credit rating.

    Foreclosure procedures vary from state to state. The procedures are established by state statutes, by case law, and by local practice. In about half of the states, foreclosures are court proceedings. First, the creditor files a suit in a court located near the property. Unless the homeowner files an answer successfully contesting the foreclosure, a judgement is entered for the creditor. The home is then sold under court supervision.

    Other states have "non-judicial foreclosures." Creditors foreclose by simply advertising the home for sale, using a legal notice in a newspaper. If homeowners want to contest this type of foreclosure, they must file a lawsuit and ask the court to stop the sale. Sometimes, if the homeowner wants the court to stop the foreclosure, the homeowner must file a bond to protect the creditor. Unless the homeowner initiates a court proceeding, there is no judicial involvement in such a foreclosure. Some states allow both types of foreclosures, judicial and non-judicial. Practicality and local custom usually dictate a creditor's choice of one type over the other.

    If you are having a hard time keeping up with your mortgage payments here are some steps you can take now to prevent foreclosure and a ruined credit rating:

    1. Get legal advice - some times you can take steps to avoid foreclosure;

    2. Keep Current on Home Payments - pay your home payments before you pay credit card bills and outstanding medical bills;

    3. Apply for Income Maintenance, Tax Abatement and Public Assistance Programs;

    4.Negotiate a Temporary Delay in Payments with Your Lender;

    5. Negotiate a Permanent Loan Restructuring;

    6. Refinance the Home Debt; and

    7. Consider Filing Bankruptcy.

    www.angelabarkerlaw.com