Biggest Defaulters on Mortgages are the Rich

July 9, 2010

The NY Times is reporting that wealthy homeowners are quickly becoming the most common homeowners to go into default and foreclosure.  The article stated that homeowners with mortgages over $1 million are much more likely to stop paying, with 1 in 7 of these wealthy homeowners currently seriously delinquent, compared to 1 in 12 for homeowners with mortgages below the million dollar level who are currently seriously delinquent.

The article stated:

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

This is consistent with what I have seen throughout San Francisco and the Bay Area.  In my experience advising clients on various real estate and land use issues, I have seen numerous wealthy homeowners with properties and mortgages far north of $1 million who have fallen upon hard times.  For many of these homeowners, their own option is to stop paying their mortgages.  Sometimes homeowners are fortunate to have many years of ownership and equity built up, so they have options such as selling the property.

When they don’t have equity, then they need to consider attempting a short sale or a loan modification.  Unfortunately, due to the passage of SB 94 this past fall, homeowners attempting a loan modification are very unlikely to be able to hire an attorney to advise them on how to accomplish a modification.  That leaves a short sale or simply walking away as the most likely option.

Read the full article here.

John Corcoran is an Associate with Plastiras & Terrizzi law firm in San Rafael, California (Marin County).  He advises clients on real estate matters, small business issues, estate planning, and general civil litigation.  He may be reached at jcorcoran@ptlegal.com or (415) 472-8100 x211.


Woman Told To Cut Down Her Trees — By Two Courts

April 30, 2010

It’s not every day a court orders a property owner to cut down trees on their own property.  One Marin county woman has the unfortunate record of having been ordered to cut down her trees by two different courts in two years.  

The California Court of Appeal this week affirmed a ruling by the Marin Superior Court that Dr. Anne Wolff of Larkspur, California must chop down more than two dozen blue gum eucalyptus trees on her property.

Read the rest of this entry »


Debut of Plastiras & Terrizzi e-Newsletter

March 4, 2010

Today, Plastiras & Terrizzi debuted its first e-newsletter, which will provide legal news and analysis on a range of subjects, including real estate, civil litigation, community association law, legal malpractice, and debt restructuring/bankruptcy, among other areas.  Check it out here.


Advantages of Real Estate Syndicate Investing

February 23, 2010

Real Estate Syndicate Investing

In today’s economy, there are no sure investments.

Many investors have been stunned by steep losses in the stock market and real estate and have moved their money to safe investments like CDs and money market accounts.

As the economy begins growing again, many investors will start looking for investments which minimize their risk and chance of loss.

One way to minimize risk and yet still take advantage of the historical trend toward increasing real estate values is by using real estate syndicates to invest in larger properties which spread out risk.

A real estate syndicate is an unofficial term used to describe a pooled real estate investment group.

In a nutshell, it is the  process of combining capital from a group of investors to purchase real estate.

Real estate syndication allows a group of individuals to combine private savings to purchase larger real estate investments for which other financing is not available.

This method of real estate investing has been a popular method of financing the purchase and sale of commercial properties such as shopping centers, office buildings and warehouses.

Every real estate syndicate is different, and dictated by the terms of the agreement which is drafted to define the purpose and powers of the syndicate.  Typically these real estate investment vehicles are structured using some form of partnership agreement or limited liability company (LLC).

Advantages of Real Estate Syndicate

Read the rest of this entry »


Mike Terrizzi, John Corcoran Oped appears in S.F. Chronicle

November 30, 2009

The below oped appeared in the S.F. Chronicle today, November 30, 2009

NFL stadium bills cut to the front of the line

by Mike Terrizzi and John Corcoran

Football fans in both Southern and Northern California were given something to cheer about when Gov. Arnold Schwarzenegger signed two bills to make it easier for developers to build a pair of NFL stadiums. Fans of the game who are also concerned about preventing potential abuse of environmental and competitive bidding law should be careful what they wish for.

The first bill, ABX381 by Assemblyman Isadore Hall, D-Compton, exempts developers of an NFL stadium project in the City of Industry (Los Angeles County) from the legal requirements of a thorough environmental impact report.

Click here to read more at SFgate.com…