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Schedule B property?
Susana,
Take a look at California Civil Code Section 1695, et.seq., which is
the Equity Share Contract Statute; and also California Civil Code
Section 2945 et.seq., the California Foreclosure Consultants Statute.
Just because your client does not profit from the upside does not
necessarily mean that your client could not be liable on the violation
of statute; and a violation of statute is an intentional tort -
nondischargeable!!
Also, remember, that if the property owner had a nondischargeable
claim against your client (under the Equity Share Statute) and you did
not schedule the property owner even as a possible; ie., unliquidated,
unmatured, disputed debt, the property owner could argue the debt is
nondischargeable.
Each of the above two points reflect exposure for the client. PLEASE,
DO YOUR RESEARCH !!
Lou Esbin.
>
> Lou-Thanks for your insight. I am not sure what "exposure" you are
referring to though. I have reviewed the documents. In a nutshell, my
client was to receive her $100k back PLUS a percentage of the
appreciation by January 2008. The actual value of the property has not
increased; thus there is no appreciation or equity to share. What
exposure could she have? In other words, why do I need to list the
borrower as a creditor? Under the terms of the agreement, borrower had
to pay her back, there is no provision whereby she would owe him, at
least not under the terms of the agreement.
>
> Susana B. Tolchard
>
> "Law Offices of Louis J. Esbin" wrote:
> Susana,
>
> What concerned me is that you described your client's agreement as an
> Equity Share Agreement. I suggest that you do some research under
> California's Equity Share Statute, review your client's documents and
> documentation, and consider whether under the Equity Share Statute
> your client may have exposure, and if so, list the borrower/seller as
> a creditor in Schedule F, and in that way, if your client is abandoned
> the asset by the Trustee (as Dennis stated was a possibility) and must
> sue to collect, he would have discharged the potential liability, and
> therefore, cross claims under the Equity Share Statute. I have
> represented clients sued under the Equity Share Statute, and there is
> even a criminal element to it, so you must advise the client of the
> risks from his agreement.
>
> Best regards. Lou Esbin
>
> --- In cdcbaa@yahoogroups.com, Susana Tolchard wrote:
> >
> > Thanks Dennis! For the response and making me laugh!
> >
> > Susana B. Tolchard
> >
> > Dennis McGoldrick wrote:
> Susana: gosh, when I see that name I always want to
> > sing!
> >
> > Most trustees will realize the real estate market is
> > not coming back for five years. List the asset in all
> > catagories, but list the value as zero(remember you
> > must list the "retail value", what would such an asset
> > get if it sat on the shelf at goodwill?) ......and
> > then explain why you claim a zero value. If the
> > trustee agrees with you a no asset report will follow.
> >
> > dennis
> > --- Susana Tolchard wrote:
> >
> > > I am not sure how to list the following "asset."
> > >
> > > Client loaned friend $100K about 4 years ago so
> > > friend could buy a house. Client has a promissory
> > > note, equity share agreement and deed of trust with
> > > this friend. Friend cannot sell or refi property to
> > > pay client because of declining value.
> > >
> > > Where and how do I list this "asset"? Do I list
> > > each contract separately? Promissory note, equity
> > > share agreement, and deed of trust? I understand
> > > none of these, if they have any present value, will
> > > be exempted but what are the chances that the T will
> > > be able to collect? How long will the T be willing
> > > to wait for the property to appreciate to be able to
> > > collect?
> > >
> > > Thanks in advance.
> > >
> > > Susana B. Tolchard
> > >
> > >
> > > ---------------------------------
> > > Be a better friend, newshound, and know-it-all with
> > > Yahoo! Mobile. Try it now.
> >
> > __________________________________________________________
> > Be a better friend, newshound, and
> > know-it-all with Yahoo! Mobile. Try it now.
> http://mobile.yahoo.com/;_yltAhu06i62sR ... o8Wcj9tAcJ
> >
> >
> >
> >
> >
> > Susana B. Tolchard
> > LAW OFFICES OF SUSANA B. TOLCHARD
> > 23734 Valencia Blvd., Suite 304
> > Valencia, CA 91355
> > Telephone: (661) 287-9986
> > Facsimile: (661) 287-9662
> >
> > ---------------------------------
> > Be a better friend, newshound, and know-it-all with Yahoo! Mobile.
> Try it now.
> >
>
>
>
> >
>
> Susana B. Tolchard
> LAW OFFICES OF SUSANA B. TOLCHARD
> 23734 Valencia Blvd., Suite 304
> Valencia, CA 91355
> Telephone: (661) 287-9986
> Facsimile: (661) 287-9662
>
> ---------------------------------
> Be a better friend, newshound, and know-it-all with Yahoo! Mobile.
Try it now.
>
The post was migrated from Yahoo.
Lou-Thanks for your insight. I am not sure what "exposure" you are referring to though. I have reviewed the documents. In a nutshell, my client was to receive her $100k back PLUS a percentage of the appreciation by January 2008. The actual value of the property has not increased; thus there is no appreciation or equity to share. What exposure could she have? In other words, why do I need to list the borrower as a creditor? Under the terms of the agreement, borrower had to pay her back, there is no provision whereby she would owe him, at least not under the terms of the agreement.
Susana B. Tolchard
"Law Offices of Louis J. Esbin" wrote:
Susana,
What concerned me is that you described your client's agreement as an
Equity Share Agreement. I suggest that you do some research under
California's Equity Share Statute, review your client's documents and
documentation, and consider whether under the Equity Share Statute
your client may have exposure, and if so, list the borrower/seller as
a creditor in Schedule F, and in that way, if your client is abandoned
the asset by the Trustee (as Dennis stated was a possibility) and must
sue to collect, he would have discharged the potential liability, and
therefore, cross claims under the Equity Share Statute. I have
represented clients sued under the Equity Share Statute, and there is
even a criminal element to it, so you must advise the client of the
risks from his agreement.
Best regards. Lou Esbin
>
> Thanks Dennis! For the response and making me laugh!
>
> Susana B. Tolchard
>
> Dennis McGoldrick wrote:
Susana: gosh, when I see that name I always want to
> sing!
>
> Most trustees will realize the real estate market is
> not coming back for five years. List the asset in all
> catagories, but list the value as zero(remember you
> must list the "retail value", what would such an asset
> get if it sat on the shelf at goodwill?) ......and
> then explain why you claim a zero value. If the
> trustee agrees with you a no asset report will follow.
>
> dennis
> --- Susana Tolchard wrote:
>
> > I am not sure how to list the following "asset."
> >
> > Client loaned friend $100K about 4 years ago so
> > friend could buy a house. Client has a promissory
> > note, equity share agreement and deed of trust with
> > this friend. Friend cannot sell or refi property to
> > pay client because of declining value.
> >
> > Where and how do I list this "asset"? Do I list
> > each contract separately? Promissory note, equity
> > share agreement, and deed of trust? I understand
> > none of these, if they have any present value, will
> > be exempted but what are the chances that the T will
> > be able to collect? How long will the T be willing
> > to wait for the property to appreciate to be able to
> > collect?
> >
> > Thanks in advance.
> >
> > Susana B. Tolchard
> >
> >
> > ---------------------------------
> > Be a better friend, newshound, and know-it-all with
> > Yahoo! Mobile. Try it now.
>
> __________________________________________________________
> Be a better friend, newshound, and
> know-it-all with Yahoo! Mobile. Try it now.
http://mobile.yahoo.com/;_yltu06i62sR8HDtDypao8Wcj9tAcJ
>
>
>
>
>
> Susana B. Tolchard
> LAW OFFICES OF SUSANA B. TOLCHARD
> 23734 Valencia Blvd., Suite 304
> Valencia, CA 91355
> Telephone: (661) 287-9986
> Facsimile: (661) 287-9662
>
> ---------------------------------
> Be a better friend, newshound, and know-it-all with Yahoo! Mobile.
Try it now.
>
Susana B. Tolchard
LAW OFFICES OF SUSANA B. TOLCHARD
23734 Valencia Blvd., Suite 304
Valencia, CA 91355
Telephone: (661) 287-9986
Facsimile: (661) 287-9662
Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.
Lou-Thanks for your insight. I am not sure what "exposure" you are referring to though. I have reviewed the documents. In a nutshell, my client was to receive her $100k back PLUS a percentage of the appreciation by January 2008. The actual value of the property has not increased; thus there is no appreciation or equity to share. What exposure could she have? In other words, why do I need to list the borrower as a creditor? Under the terms of the agreement, borrower had to pay her back, there is no provision whereby she would owe him, at least not under the terms of the agreement. Susana B. Tolchard"Law Offices of Louis J. Esbin" <Esbinlaw@sbcglobal.net> wrote: Susana,What concerned me is that you described your client's agreement as anEquity Share Agreement. I suggest that you do some research underCalifornia's Equity Share Statute, review your client's documents anddocumentation, and consider whether under the Equity Share Statuteyour client may have exposure, and if so, list the borrower/seller asa creditor in Schedule F, and in that way, if your client is abandonedthe asset by the Trustee (as Dennis stated was a possibility) and mustsue to collect, he would have discharged the potential liability, andtherefore, cross claims under the Equity Share Statute. I haverepresented clients sued under the Equity Share Statute, and there iseven a criminal element to it, so you must advise the client of therisks from
his agreement.Best regards. Lou Esbin--- In cdcbaa@yahoogroups.com, Susana Tolchard <stolchard@...> wrote:>> Thanks Dennis! For the response and making me laugh! > > Susana B. Tolchard> > Dennis McGoldrick <easky1@...> wrote: Susana: gosh, when I see that name I always want to> sing!> > Most trustees will realize the real estate market is> not coming back for five years. List the asset in all> catagories, but list the value as zero(remember you> must list the "retail value", what would such an asset> get if it sat on the shelf at goodwill?) ......and> then explain why you claim a zero value. If the> trustee agrees with you a no asset report will follow.> > dennis> --- Susana Tolchard <stolchard@...> wrote:> > > I am not sure how to
list the following "asset."> > > > Client loaned friend $100K about 4 years ago so> > friend could buy a house. Client has a promissory> > note, equity share agreement and deed of trust with> > this friend. Friend cannot sell or refi property to> > pay client because of declining value. > > > > Where and how do I list this "asset"? Do I list> > each contract separately? Promissory note, equity> > share agreement, and deed of trust? I understand> > none of these, if they have any present value, will> > be exempted but what are the chances that the T will> > be able to collect? How long will the T be willing> > to wait for the property to appreciate to be able to> > collect? > > > > Thanks in advance.> > > > Susana B. Tolchard> > > > > >
---------------------------------> > Be a better friend, newshound, and know-it-all with> > Yahoo! Mobile. Try it now.> > __________________________________________________________> Be a better friend, newshound, and > know-it-all with Yahoo! Mobile. Try it now. http://mobile.yahoo.com/;_yltu06i62sR8HDtDypao8Wcj9tAcJ> > > > > > Susana B. Tolchard> LAW OFFICES OF SUSANA B. TOLCHARD> 23734 Valencia Blvd., Suite 304> Valencia, CA 91355> Telephone: (661) 287-9986> Facsimile: (661) 287-9662> > ---------------------------------> Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.>Susana B. TolchardLAW OFFICES OF SUSANA B. TOLCHARD23734 Valencia Blvd., Suite 304Valencia, CA 91355Telephone: (661) 287-9986Facsimile: (661) 287-9662
Be a better friend, newshound, and
know-it-all with Yahoo! Mobile. Try it now.
The post was migrated from Yahoo.
Susana,
What concerned me is that you described your client's agreement as an
Equity Share Agreement. I suggest that you do some research under
California's Equity Share Statute, review your client's documents and
documentation, and consider whether under the Equity Share Statute
your client may have exposure, and if so, list the borrower/seller as
a creditor in Schedule F, and in that way, if your client is abandoned
the asset by the Trustee (as Dennis stated was a possibility) and must
sue to collect, he would have discharged the potential liability, and
therefore, cross claims under the Equity Share Statute. I have
represented clients sued under the Equity Share Statute, and there is
even a criminal element to it, so you must advise the client of the
risks from his agreement.
Best regards. Lou Esbin
>
> Thanks Dennis! For the response and making me laugh!
>
> Susana B. Tolchard
>
> Dennis McGoldrick wrote: Susana: gosh, when I see that name I always want to
> sing!
>
> Most trustees will realize the real estate market is
> not coming back for five years. List the asset in all
> catagories, but list the value as zero(remember you
> must list the "retail value", what would such an asset
> get if it sat on the shelf at goodwill?) ......and
> then explain why you claim a zero value. If the
> trustee agrees with you a no asset report will follow.
>
> dennis
> --- Susana Tolchard wrote:
>
> > I am not sure how to list the following "asset."
> >
> > Client loaned friend $100K about 4 years ago so
> > friend could buy a house. Client has a promissory
> > note, equity share agreement and deed of trust with
> > this friend. Friend cannot sell or refi property to
> > pay client because of declining value.
> >
> > Where and how do I list this "asset"? Do I list
> > each contract separately? Promissory note, equity
> > share agreement, and deed of trust? I understand
> > none of these, if they have any present value, will
> > be exempted but what are the chances that the T will
> > be able to collect? How long will the T be willing
> > to wait for the property to appreciate to be able to
> > collect?
> >
> > Thanks in advance.
> >
> > Susana B. Tolchard
> >
> >
> > ---------------------------------
> > Be a better friend, newshound, and know-it-all with
> > Yahoo! Mobile. Try it now.
>
> __________________________________________________________
> Be a better friend, newshound, and
> know-it-all with Yahoo! Mobile. Try it now.
The post was migrated from Yahoo.
Thanks Dennis! For the response and making me laugh!
Susana B. Tolchard
Dennis McGoldrick wrote: Susana: gosh, when I see that name I always want to
sing!
Most trustees will realize the real estate market is
not coming back for five years. List the asset in all
catagories, but list the value as zero(remember you
must list the "retail value", what would such an asset
get if it sat on the shelf at goodwill?) ......and
then explain why you claim a zero value. If the
trustee agrees with you a no asset report will follow.
dennis
--- Susana Tolchard wrote:
> I am not sure how to list the following "asset."
>
> Client loaned friend $100K about 4 years ago so
> friend could buy a house. Client has a promissory
> note, equity share agreement and deed of trust with
> this friend. Friend cannot sell or refi property to
> pay client because of declining value.
>
> Where and how do I list this "asset"? Do I list
> each contract separately? Promissory note, equity
> share agreement, and deed of trust? I understand
> none of these, if they have any present value, will
> be exempted but what are the chances that the T will
> be able to collect? How long will the T be willing
> to wait for the property to appreciate to be able to
> collect?
>
> Thanks in advance.
>
> Susana B. Tolchard
>
>
> ---------------------------------
> Be a better friend, newshound, and know-it-all with
> Yahoo! Mobile. Try it now.
The post was migrated from Yahoo.
Susana: gosh, when I see that name I always want to
sing!
Most trustees will realize the real estate market is
not coming back for five years. List the asset in all
catagories, but list the value as zero(remember you
must list the "retail value", what would such an asset
get if it sat on the shelf at goodwill?) ......and
then explain why you claim a zero value. If the
trustee agrees with you a no asset report will follow.
dennis
> I am not sure how to list the following "asset."
>
> Client loaned friend $100K about 4 years ago so
> friend could buy a house. Client has a promissory
> note, equity share agreement and deed of trust with
> this friend. Friend cannot sell or refi property to
> pay client because of declining value.
>
> Where and how do I list this "asset"? Do I list
> each contract separately? Promissory note, equity
> share agreement, and deed of trust? I understand
> none of these, if they have any present value, will
> be exempted but what are the chances that the T will
> be able to collect? How long will the T be willing
> to wait for the property to appreciate to be able to
> collect?
>
> Thanks in advance.
>
> Susana B. Tolchard
>
>
> ---------------------------------
> Be a better friend, newshound, and know-it-all with
> Yahoo! Mobile. Try it now.
The post was migrated from Yahoo.
I am not sure how to list the following "asset."
Client loaned friend $100K about 4 years ago so friend could buy a house. Client has a promissory note, equity share agreement and deed of trust with this friend. Friend cannot sell or refi property to pay client because of declining value.
Where and how do I list this "asset"? Do I list each contract separately? Promissory note, equity share agreement, and deed of trust? I understand none of these, if they have any present value, will be exempted but what are the chances that the T will be able to collect? How long will the T be willing to wait for the property to appreciate to be able to collect?
Thanks in advance.
Susana B. Tolchard
Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.
I am not sure how to list the following "asset." Client loaned friend $100K about 4 years ago so friend could buy a house. Client has a promissory note, equity share agreement and deed of trust with this friend. Friend cannot sell or refi property to pay client because of declining value. Where and how do I list this "asset"? Do I list each contract separately? Promissory note, equity share agreement, and deed of trust? I understand none of these, if they have any present value, will be exempted but what are the chances that the T will be able to collect? How long will the T be willing to wait for the property to appreciate to be able to collect? Thanks in advance. Susana B. Tolchard
Be a better friend, newshound, and
know-it-all with Yahoo! Mobile. Try it now.
The post was migrated from Yahoo.