Mortgage Modifications Update - New Base Net Present Value Model v5.0

This revised tool is used by "servicers participating in HAMP as a tool for deciding whether to modify a troubled mortgage that is eligible for subsidies under the program".

A main thrust of this new version of the NPV tool is for non-owner-occupied properties.

Additionally, investor incentives for successful modifications are enhanced by way of this new Model v5.0.

If you want to actually know how modification decisions are made, knowing this document is a must.

Biggest US Landowner - 3,437.5 Square Miles

Business Insider has a terrific article, The 25 Biggest Landowners In The US, where we meet who controls the soil in our country.

The data behind the article was provided by The Land Report.

Most fascinating are the blurbs under each landowner that explains what you do with all of that land - there are ranchers, aerospace testers, foresters, lumber-manufacturers, equestrians, conservationists, farmers, and much more.

In perspective, Manhattan Island in New York City is 22.7 square miles or better stated - John Malone owns more land than 151 Manhattans.

Lease Guaranties & Modifications - Be Sure to Draft Modifications Carefully

The Appellate Division recently addressed a situation where a guaranty accompanying the original lease was enforced post-modification of that underlying lease in 4 USS LLC v. DSW MS LLC where the court ruled that the Guarantee could "recover under the terms of the lease, prior to its modification".

This means that where you make a deal to modify the terms of your lease, you may still be personally liable under the old guaranty for past breaches of that previous lease.

The takeaway from this case is to address the guaranty documents in the modification documents and expressly state the intentions of the parties as to past breaches and their enforceability post-modification.

Real estate agents often only think about getting the functional results that their clients expressly state accomplished - this case is a reminder of the necessity to clean up the past before emerging into the goals stated by your clients for the future.

Otherwise, the past can come back to bite you.

Lieb Leverages Informational Imbalances

Andrew Lieb's Radio Segment: Save a Deal From Pitfalls (Real Life - 88.3FM)

Here is a clip from Andrew Lieb's radio segment last week on Real Life 88.3 Peconic Broadcasting - You can check it out here. Topics discussed include real estate tips to close a deal for sellers and agents. Learn how to be proactive to save a deal from pitfalls.

Real Life Episode 69 - Saving A Deal

Surprises About Homeowners' Insurance You Probably Didn't Know

If you or your clients are in the process of purchasing property and want a resource guide that explains Homeowners' Insurance, check out Andrew Matthew Lieb's latest article featured in The Huffington Post.

Surprises About Homeowners' Insurance You Probably Didn't Know


Topics Include:

• Categories of Insurance
• Deductibles
• Property Damage Coverage
• Off-Premises Coverage
• Household Workers' Coverage
• Rental Issues
• Notice Requirements
• Mitigation Requirements
• Duty to Defend
• Declaratory Judgment Option: 

New Amendment Allows For Borrowers to Re-Modify Loans That Have Already Received a HAMP Modification If They Experience a New Hardship

Great news for those struggling with their mortgage after previously receiving a modification! Now, you can re-modify your mortgage due to recent amendments to the Making Homes Affordable (MHA) Handbook. On September 30^th, Treasury released Supplemental Directive 14-03, which provides new guidelines, updates and clarifications that servicers must follow.

To better understand these new amendments, previously, a servicer could not re-modify a loan that received a HAMP permanent modification until either the loan lost good standing or more than 5 years had passed since the permanent modification effective date.

Now, the new rule permits a loan that was previously permanently modified under HAMP to be re-modified regardless of loss of good standing so long as, either, the borrower has experienced a change in circumstance, or at least 12 months have passed since the HAMP Modification Effective Date. This amendment will allow for borrowers to re-modify loans that have already received a HAMP permanent modification if they experience a new hardship or if one year has passed.

Lieb at Law is Hiring a New Law School Graduate (Law Clerk / Entry Level Junior Associate)

Join a thriving law firm that leverages informational imbalances and leads our profession through advocacy and advice supported by cutting-edge technology and know-how.

You will be exposed to real estate litigation and assist in cases from real estate brokerage through landlord / tenant, premises liability, personal injury, foreclosure defense and more.

This is a litigation support position, inclusive of drafting legal memos, pleadings, discovery and motion practice. Deductive reasoning skills required. Must be a self-starter with ambition and drive.

Those that succeed in this position can earn a Junior Associate Attorney position once licensed. Partner track available for the highest level achievers.

This career opportunity is out of our Center Moriches office.

To Apply: Submit Cover Letter, Resume and Writing Sample to careers@liebatlaw.com 

Click here to learn more about Lieb at Law. 

Just Released: New York Metro Super Lawyers Magazine (Andrew Lieb is Featured)

2014 New York Metro Super Lawyers Magazine

The digital version of the New York Metro Super Lawyers Magazine contains the entire print publication. Andrew Lieb is featured on page 151.

Super Lawyers Magazine 2014

The New York Metro Super Lawyers supplement will be in The New York Times newspaper on Sunday 10/5/2014. Andrew Lieb is featured on page 143.

New York Times Supplement

Lieb Awarded Super Lawyers Rising Star 2014

Andrew Lieb, Esq. wins Rising Star Award by Super Lawyers!

We are thrilled to announce that Andrew Lieb has been named a Rising Star by Super Lawyers.

About Rising Stars

The Rising Stars list is developed using a patented multiphase selection process:

• To be eligible for inclusion in Rising Stars, a candidate must be either 40 years old or younger or in practice for 10 years or less.

• No more than 2.5 percent of the lawyers in a state are named to Rising Stars. 

To view Andrew Lieb's profile on Super Lawyers, click here

*Andrew Lieb will be featured in the October 5th edition of the Sunday New York Times. Remember to pick up the issue and share with your network! 

First Town in U.S. to Require Digital Carbon Monoxide Detectors

In New York, the Town of Brookhaven has become the first Town in the United States to require digital carbon monoxide detectors in every residential property. 

This new law comes after a fatal carbon monoxide exposure incident involving a restaurant manager in Huntington Station this past February. 

This new law amends Chapter 30 of the town’s code which previously mandated all buildings with human occupants to have carbon monoxide detecting devices or systems. The newly amended law maintains this mandate but now requires all homes to have carbon monoxide detectors or devices with digital outputs. While conventional detectors only sound an alarm when the carbon monoxide level has reached a dangerous level, the digital detectors display the amount of carbon monoxide gas present even at very low levels. This change in the law is significant because even low levels of carbon monoxide exposure can lead to health problems.  

Failure to comply with the Town Code may result in substantial fines and criminal charges. Additionally, homeowners who fail to update their carbon monoxide detection system may be held responsible for injuries or fatalities on their property related to exposure.

Per the amended Code, new homes are required to immediately install digital carbon monoxide detectors and existing homes must install digital carbon monoxide detectors by August 1, 2021.

Why Not to Rent Property to a Family Member

Before letting a family member stay at your house, read and share Andrew Lieb's latest article published in the New York Section of the Huffington Post.

The answer depends on two very important factors:

1. Do you really need the money from your rental?
2. Are you actually related to your family member?

The comprehensive article is available through the following link. Full Article

Listen to Andrew Lieb's Latest Radio Segment - Real Estate Tips For Hamptons Purchasers

If you missed last week's Realife episode, you can listen to it here. The Last 10 minutes Andrew Matthew Lieb discusses purchasing a home in the hamptons and real estate tips.

http://peconicpublicbroadcasting.org/post/real-life-episode-65

Rate Hikes and Litigation: Changes to Federal Flood Insurance Program (Andrew Lieb's Article Published in the American Bar Association)

Changes to the federal flood insurance program in March attempted to address deep concerns about skyrocketing rates for those in flood-prone areas covered by the National Flood Insurance Program (NFIP), but upcoming deadlines implementing these changes raise the specter of litigation.

To read the full article, visit The Journal of Real Estate Litigation and Condemnation of the American Bar Association. Full Article 

5 Tips Landlords Must Know Before Wrapping-U​p Seasonal Rentals (Andrew Lieb's Latest Article Published in The Huffington Post)

Just because the term of the lease is over does not mean that the landlord automatically gets their seasonal rental property back. Additionally, smart brokers put a clause in their agreements that provides for a commission being due should the tenant purchase the rental property from the landlord.   Andrew Lieb shares even more tips in the Home Section of the Huffington Post.   The comprehensive article is available through the following link.  Full Article

5 Tips for Landlords in Wrapping-Up Your Seasonal Rentals

1. Gaining Repossession: Just because the term of the lease (a/k/a duration) is over does not mean that you, the landlord, automatically gets your seasonal rental property back. In many States, such as New York, the tenant must surrender possession of the property prior to the landlord retaking possession regardless if the lease period has ended. In best practice, a written lease agreement will provide not only when the term is over, but also the mechanism of how, when and where the tenant is supposed to surrender possession (e.g., tenant shall surrender possession by way of turning over the keys to the subject premises to the landlord, in-person, at the subject premises at 12:00 p.m. on September 30, 2014 or at such other time, date and manner as is mutually agreed upon by and between the parties in a signed writing). Such a surrender clause is particularly important for landlords because a landlord who engages in a self-help eviction (i.e., going into the property without the tenant’s permission and changing the locks) is exposed to a lawsuit by the tenant for treble damages for the tenant’s lost use and occupancy of the property. Beyond protecting oneself from a self-help claim, landlords should also motivate the tenant to leave on time by utilizing a holdover liquidated damages clause (i.e., predetermined monies due and owing in the case of a holdover tenant – staying after the expiration of the lease). Courts in many States, such as New York, will enforce this type of clause at a level of three times the previous rent due for the duration of the holdover period.
2. Damage Inspection: There are 4 steps to a proper damages inspection: (1) Establishing a baseline condition of the property when the tenant takes possession (i.e., countersigned and dated pictures should have been taken); (2) Distinguishing between actual damage and ordinary wear and tear (i.e., definitions should be included in the lease for each category); (3) Determining the condition of the property upon the tenant surrendering possession (i.e., tenant and landlord walk through the property while memorializing the condition in pictures that are countersigned and dated); and (4) Obtaining 2 estimates for repairs from licensed home improvement contractors to establish the cost of repairs.   
3. Refunding the Security Deposit: A landlord is a trustee for the tenant’s security deposit monies. Where a landlord wrongfully withholds the security deposit, the tenant may be able to sue for those monies on theories such as breach of contract, conversion and breach of fiduciary duty, among others. Additionally, many States, such as New York, provide a tenant with a reciprocal right to sue for attorneys’ fees whenever a lease provides the landlord with such a right (i.e., landlord’s right to attorneys’ fees in the event of breach is standard practice in leases). Consequently, a tenant can frequently hire an attorney, who will be paid for by the landlord, to recover their security deposit.
4. Lease Renewal: The best tenants continue to renew season after season. For the landlord, this not only makes your budget for operating the property predictable, but also avoids the landlord from having to continually make yourself or your agent available to show the property to prospective replacement tenants. The protocol for the tenant exercising a lease renewal option should be set forth in the current lease agreement, including how notice to renew should be rendered (i.e., mailing a certified mail return receipt letter to the landlord indicating that the tenant shall exercise its renewal option). Additionally, the lease should provide how the rental fee will be adjusted for future seasons by what is typically referred to as a rent escalation clause, (i.e., either at a percentage increase such as 3% or tied to an index such as the Consumer Price Index). Oral renewals and text messages should be avoided as they often result in litigating.   
5. Brokerage Agreement: Many real estate brokerage agreements provide for additional monies being due to the broker in the event of a renewal of the lease by the current tenant or a member of the tenant’s family. Additionally, smart brokers put a clause in their agreements that provides for a commission being due should the tenant purchase the rental property from the landlord. Reviewing the brokerage agreement that was applicable when the tenant first let the property is a great first step before lease renewal to know how a landlord’s net profits will be effected in future years.

Listen to Andrew Lieb Discuss Real Estate Tips for Hampton Purchasers on 88.3 FM Today

Andrew Lieb Shares Real Estate Tips on 88.3FM today at 5:50pm
Tune into 88.3FM (WPPB Peconic Broadcasting) for Realife with John Cristopher from Brown Harris Stevens.

Today's Line Up of Guests:

5:30pm: Cia Comnas, Executive Managing Director of Brown Harris Stevens discusses the "hot" areas in the Hamptons and what it takes to be a successful agent in the Hamptons.

5:40pm: Greg Heym, Chief Economist for Terra Holdings enlightens us about the recent release of data for the numbers in the City and here in the Hamptons.

5:50pm: Andrew Lieb, Esq., owner of Lieb at Law and Lieb School wraps up Realife as he shares some of his secrets that a buyer should know before they purchase a home in the Hamptons.

http://peconicpublicbroadcasting.org/programs/real-life-wppb

Tips to Avoid a Lawsuit While Getting Home Improvements (Andrew Lieb's Latest Articles)

Andrew Lieb shares secrets to avoid litigation while getting home improvements in the Huffington Post and Dan's Papers.   Full Article  If you plan to do a home improvement project, there will certainly be enough on your mind without having to worry about the legal issues.  Here is your reference guide to avoid litigation while getting the job done:  10 Home Improvement Secrets: Avoiding Litigation While Getting the Job Done

Historic Storm Prompts Town of Brookhaven to Initiate Flood Relief Efforts

On August 1^st, record setting rain doused Long Island causing extensive flood damage. The Town of Brookhaven has been working with the New York State Division of Homeland Security and Emergency Services to perform damage assessments for residents in affected areas. Damage assessments are an effort to qualify victims for federal or state funding or special programs. Supervisor Ed Romaine has asked the federal government to provide FEMA assistance to storm victims and has vowed to push County, State and Federal officials to provide assistance to storm victims.  The Town has estimated $10-15 million in damage to private homes as a result of the torrential rain. Additionally, an estimated $15 million in damage to our roadways has been estimated by the Town Highway Department. Although the South Shore of Long Island sustained very little damage, some North Shore communities that were hit hard by Superstorm Sandy, now have another storm to clean up after. So far, the Building Department has inspected more than 75 homes and deemed nine uninhabitable.

Residents who feel that their homes may have sustained structural damage from the storm are urged to call 631-451-TOWN (8696). An inspector will be sent to their home to assess the damage and determine if the home is safe to occupy.

For insurance related issues, residents should call 1-800-339-1759 to speak directly with representatives from the New York State Department of Financial Services.

As of Wednesday, August 20^th, a “211 Hotline,” originally activated after Sandy, will be implemented again to assist residents with the clean-up in their flood damaged homes.

Residents with large amounts of debris from flood clean-up should call 631-451-TOWN to schedule pick-up from the Town’s Department of Waste Management.

Should I get solar? Not yet, transparent panels are the future

Transparent solar panels may be here sooner than you think.

Accordingly to Slash Gear, a team at Michigan State University has developed "a transparent luminescent solar concentrator which looks clear to the eye but can still harvest energy from wavelengths of light invisible to humans". Unfortunately, the team has not achieved panels that are efficient enough for use on your home just yet, but it seems that great strides are being achieved relatively quickly.

So, before you say yes to solar panels being placed on your roof, maybe you should just wait a few years to redo your sunroom with transparent solar panels and generate some power in the process.