October, 2011
- Marital Purpose Statements for Wisconsin Residents
Many lenders are aware that Wisconsin law requires them to obtain a marital purpose statement when making a loan to a Wisconsin resident. However, there is a significant amount of uncertainty in determining how the marital purpose statement should be worded, how it can be documented, who should sign the statement and when it must be obtained. This article will clarify those uncertainties.
September, 2011
- Foreclosing SBA 504 Mortgages
As many banking institutions continue to react to the effects of the economy, many are faced with the need to foreclose commercial mortgages originated under the U.S. Small Business Administration (“SBA”) 504 loan program. In addition to standard banking practice and applicable state laws related to mortgage foreclosures, when it comes to SBA 504 loans, additional requirements and nuances must be addressed.
August, 2011
- Criminal Prosecution For Damages To Property Subject To A Mortgage
Nothing is more disheartening than to enter OREO, post-foreclosure, and realize that a borrower has damaged the property or removed items such as furnaces; water heaters; sinks; cabinets; flooring; carpeting; light fixtures; toilets; windows; landscaping; and trees. The removal of these items can cause a drastic decline in the value of the property and can considerably delay the resale of the property while the property is repaired and removed items are replaced.
June, 2011
May, 2011
- Reaffirmation Agreements
When a borrower files for relief under Chapter 7 of the United States Bankruptcy Code, the borrower is typically entitled to a discharge of the borrower’s debts. One of the exceptions to discharge occurs when the creditor and borrower voluntarily agree to enter into a reaffirmation agreement.
April, 2011
- Property Tax Appeals Due Date Reminder
April is the month to be thinking about property taxes in Minnesota. With the widespread decline in the market value of real property, many properties are being taxed at an amount far in excess of their fair market value.
March, 2011
- Mediation FAQs
Mediation is a form of alternative dispute resolution (ADR) used by parties to a dispute to resolve the dispute. In most civil cases, some form of ADR is ordered by the Court. Mediation is the most popular form of ADR used by state and federal courts to facilitate the settlement of litigation.
February, 2011
- SBA Alert: SBA 504 Refinancing Program
Today the U.S. Small Business Administration (“SBA”) announced the launch of the much anticipated 504 refinancing program authorized under the Small Business Jobs Act. - Anastasi & Associates Announces New Shareholder
David C. Anastasi of Anastasi & Associates, P.A., today announced that Garth Gavenda has been elected as a shareholder.
January, 2011
- Issues to Consider Prior to Acquiring OREO
When an event of default occurs with respect to a loan that is secured by a mortgage encumbering real estate, there are a number of issues that should be investigated by the bank prior to its acquisition of the real estate (“OREO”). The bank’s due diligence related to such issues should be finalized prior to the recording of a deed in lieu of foreclosure or the holding of a sheriff’s foreclosure sale. This article, while not intended to be comprehensive, contains a list of the most common issues that should be investigated.
December, 2010
- Foreclosing a Perfected Security Interest in LLC Membership Units/Interests
In our most recent edition of The Advisor, we discussed the process for a lender to obtain and perfect a security interest in membership units/interests in a limited liability company (“LLC”), as collateral for a loan. In this edition, we will address the lender’s rights to foreclose its security interest upon the occurrence of an event of a default under the loan.
November, 2010
- Membership Interests in a Limited Liability Company as Collateral
A limited liability company (“LLC”) is one of the most commonly chosen entity structures used by new businesses today. LLCs are owned by its members, who hold either membership units or membership interests. As LLCs are commonly the entity structure of choice, it is important for banks to understand how to accept and perfect a security interest in the membership units/interests as collateral for loans.
October, 2010
- Shortening Foreclosure Redemption Periods in Minnesota
Whether a lender is foreclosing a mortgage by publication or action, the process can be long and drawn out. Fortunately, Minnesota law does provide certain tools that allow a lender to shorten the redemption period or to avoid the foreclosure process altogether.
September, 2010
- Managing Vacant Properties
With winter fast approaching, it is important for lenders to pay a visit to real estate which is, or is about to become, subject to a foreclosure proceeding to determine the occupancy status. If a subject property is vacant and unoccupied, lenders should make certain that the property is properly secured, winterized, and insured, as hazards such as frozen pipes and vandalism can drastically reduce the value of the property. - CHARITY GOLF EVENT RAISES $26,075 FOR LOCAL CHARITIES
Anastasi & Associates, P.A., a law firm located in Stillwater, held their 10th Charity Golf Event on September 2, 2010, at Hillcrest Golf Club of St. Paul. The event raised money for two local charities, Family Means and Family Pathways.
August, 2010
- 2010 Legislative Session Changes
Almost every year, the legislature amends and changes laws that affect the banking and lending community. This year is no exception. This document is a brief summary of some of the new changes and amendments.
July, 2010
- FAQs on 1099 A and 1099 C*
Now, more than in recent history, banks are faced with the realities of foreclosed, repossessed or surrendered collateral, as well as forgiven or cancelled indebtedness. Accordingly, it is important that banks understand the Internal Revenue Service’s related reporting requirements.This article answers commonly asked questions.
*This article was published in the October 2010 MBA News Magazine.
June, 2010
- Acceptance of Partial Payments After Demand
“After sending a default notice demanding payment, can a lender accept a partial payment?” The easy answer is that a lender can, of course, accept a partial payment. However, there are potential ramifications of accepting a partial payment after making demand for a specific payment.
April, 2010
- Garnishment Update: Breaking News
On April 22, 2010, the Minnesota Supreme Court issued a decision in the case of Savig v. First National Bank of Omaha, et al., which clarified the unresolved issues caused by the Enright decision.
March, 2010
- Garnishment Update
The Minnesota state legislature made a number of modifications to the garnishment section of the Minnesota Statutes.
July, 2009
- Going Green at Anastasi & Associates
We at Anastasi & Associates are doing our part to go green by sending more communications and documents electronically.
- Bankruptcy Corner: Bill afoot in congress this past session seeking to modify the provisions of Chapter 13 Bankruptcy to allow debtors the ability to effectively “lien strip” mortgages on their homestead.
- Are Your Default Notices Complying With the
New Foreclosure Laws?: Lenders should make sure that when foreclosing on a property, all Default Notices sent to borrowers are fully compliant with new Minnesota Foreclosure Statute §§ 580.021 and 580.022. - Minnesota's New Foreclosure Postponement Law: Minnesota Statutes § 580.07 was amended to allow a mortgagor or owner to delay, or postpone, the foreclosure sale (“Sheriff’s Sale”) of his/her homestead by five (5) months.
May, 2009
- Is a Perfected Security Interest in a
Deposit Account
a Defense to a Federal Tax Levy?: It is important that
the bank act in a timely manner or it may find itself
barred from asserting a wrongful levy claim
- Bankruptcy Corner: Obtaining a State Court Judgment for Fraud does not Necessarily Mean that the Debt will be
Non-Dischargeable in a Bankruptcy - Validity of Junior Mortgages: In light of the Court’s decision
in Bank Midwest, it is always important to review senior mortgages to ensure the validity of a junior mortgage
January, 2009
- Closing Protection Letters: Knowing what is not covered
- RA9: Minor error in financing statement
may leave creditor unsecured - Bank Documents: When scanned copies are sufficient
and when originals must be kept - Short Sales and Verbiage: Huh?
October, 2008
- Ask Dave: “How does the change in FDIC coverage passed as part of the $700 billion bailout package affect me, the consumer depositor?”
- Be Wary of the Clock: Limitation Periods on Stale Claims
- Forming a Limited Liability Company: When to Engage Counsel
- Minnesota Property Exemptions: Current list of property exemptions regarding bankruptcy.
July, 2008
- Ask Dave: “Do I always need both spouses’ signatures when taking a mortgage on a residential property?”
- Loan Participations: Legal and Regulatory Issues
- Mortgage Foreclosures: Understanding Deficiencies
- Legislative Update:
- Establishing vacancy to allow for a 5-week redemption
- Residential leases on buildings in foreclosure
- Additional Foreclosure Counseling Notice
for loans under $100,000.00 - Changes in the information required
on foreclosure documents - Notice of Intent to Redeem filing deadline change
