Dave Guinan's Blog

Welcome to my blog. This the place to check on new events which affect the small business community. This is also the place to check out new additions to my website.

Incorporation links by State

Incorporation information links to every state

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Foreclosure versus Short sale - which is better?

Is it better to attempt a short sale rather than allow a foreclosure?

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Links to useful resources

Links to useful resources

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Deficiency judgment - a risk if the property is worth less than what's owed

Deficiency judgment -- what can happen after foreclosure if you're upside down

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The Foreclosure Process

This is how the foreclosure process works

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Power of attorney for healthcare - state your intentions!

Power of attorney for healthcare - state your intentions!

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Dave Guinan to Speak in "It's Your Estate" Series

Tomorrow and Thursday I will be giving free instructional presentations about Advanced Health Care Directives, Guardianships, and Powers of Attorney over assets.. These 90 minute classes are a part of the 6 week series of presentations on "It's Your Estate" sponsored by KNPB, Community Foundation of Western Nevada, and numerous other non-profit groups.

The presentation on Wednesday, April 20 will begin at 2:00 p.m. at Spanish Springs Library, 7100 Pyramid Way, Sparks, Nevada.

The presentation on Thursday, April 21 will begin at 3:00 p.m. at South Valleys Library, 15650 Wedge Parkway, Reno, Nevada.

Please come join us. There will be lots of interaction during these important legal discussions. It will be both instructional and entertaining. No reservation is necessary.

Short sale v. foreclosure?

I have often been asked for advice from distressed home owners about what they should do about their house which is upside down.

My very lawyerly answer is "It depends." There are all sorts of variables which may affect the answer, such as "Can you afford the payments?" "Is the house your home which has great sentimental value, e.g. you raised your kids there?" "How far upside down are you?" "Do you have other assets to protect?" "Are you already in default on your loan?" "How do you feel about walking away?"

There is a common misconception that a short sale is somehow less detrimental to your credit rating than a foreclosure. From what I've seen and read, your credit is going in the toilet regardless of whether you do a short sale or a foreclosure. Here is an article by Mike Clover which sums up the situation well: When Does a Short Sale Make Sense? Mike Clover cites another good article by John Ulzheimer: The Truth About Short Sales and Their Impact on Your Credit.

The conclusion of these authors is that from a credit standpoint, it probably doesn't matter.

I'm in the process of writing another article about this on my main website, which will hit this blog when it's posted.

Good Luck!!

Proposed Legislation to Help Consumers in Foreclosure

SB414 is progressing through the Nevada Legislature. It was passed out of the Senate Commerce and Labor Committee on April 14. SB414 would restrict financial institutions from seeking a deficiency on purchase money deeds of trust on residences if the bank agrees to a short sale and doesn't reserve the right to seek a deficiency. It also requires a bank to accept or reject a short sale request within 90 days. To review the language of SB414, click here.

AB273 among other things would prohibit a deficiency judgment being awarded to a bank which is a "sold-out" junior purchase money deed of trust. Under existing law a sold out junior lien holder can sue directly on the obligation and is not restricted by the deficiency protection in NRS 40.455.

Non compete agreement - employer v. employee after termination

Non compete agreement - fight after termination?

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Corporations in a Nutshell

A Primer on Corporations

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Dave Guinan coaching contact page

Dave Guinan coaching contact page

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December 2009 Foreclosure Statistics

In December 2009 Washoe County ended the worst year in history for foreclosures.

The number of NOD's and Notices of Trustee Sales peaked in August and then dropped somewhat through November. They increased again in December.

In the chart below, the top line is Notices of Default, the middle line is Notices of Trustee Sales, and the bottom line is the actual Trustee Sales.

This chart is posted with the kind permission of Ben Nelson at Ticor Title of Nevada, Inc.

Joint tenancy - a way to avoid probate?

Joint tenancy - a way to avoid probate?

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Observations at a Trustee's Sale

Yesterday I watched as numerous properties were supposed to have been put up for foreclosure sale on the courthouse steps in downtown Reno.

The trustee's sale occurs toward the end of the foreclosure process. The foreclosing lender is required to publish and record a Notice of Trustee's Sale which tells the borrower, as well as the public, when and where the foreclosed property is going to be offered for sale. Often the sale takes place on the courthouse steps.

Yesterday the series of sales started at 11:00 a.m. There were probably two dozen people who were there to observe and possibly bid. There must have been two to three dozen properties which had been noticed for sale. Of all those properties, only four were actually offered for sale. In each of those four cases the lender had set a minimum opening bid, and in each of those four cases the property went back to the lender for the minimum bid. No one in the audience made a single bid.

Of the remaining properties that had been noticed for sale, some of the sales were canceled, and most of the sales were continued to a later date.

I attended the sale because I was following the progress of a foreclosure which had originally been noticed for a sale in October. On the sale date in October it was continued until yesterday, and yesterday it was continued until January. There have be no negotiations between the borrower and the lender since September which a proposed short sale fell through.

So the question arises, why doesn't the bank just complete the trustee's sale and be over with it? I have identified two possible reasons: 1. The bank doesn't want any more foreclosed properties on its books this year, and it's waiting until next year to take it back, or 2. AB140 which became effective on October 1, 2009, places a duty on the purchaser of a foreclosed property to maintain the exterior, including "limiting the growth of excessive foliage," i.e. cutting down the weeds and mowing the lawn. Perhaps the bank doesn't want to assume the duties imposed by AB 140. To read a copy of AB 140, click here.

The high number of continued sales is another indication (or symptom) of the "shadow inventory" which I've discussed previously. There are a huge number of properties in foreclosure which haven't hit the market. Whether it's an attempt to stabilize prices or a reluctance to put more REOs on the books is anybody's guess.

Dave Guinan speaks at Nevada Masonic Grand Lodge

One of my passions in life is Freemasonry. I have been a Nevada Mason more than 30 years, and I have embraced this Fraternity which espouses the Fatherhood of God and the Brotherhood of Man. It is a perfect adjunct to my life as a lawyer, where I also am passionate about helping people with their legal problems.

I recently attended and spoke at the annual session of the Grand Lodge of Free and Accepted Masons of Nevada.

October Statistics for Washoe Co. Foreclosures

The October foreclosure numbers have come down off their highs - but they're still way up there.

The number of NODs dropped to 767 in which is about what they were in July. There were 469 Notices of Trustee Sale and 320 actual trustee sales in October.

As noted in a previous blog entry, a new factor will be the requirement for foreclosure mediation, which I describe at more length here. I understand that some medications have actually occurred, but I haven't heard any results.

This chart is posted with the kind permission of Ben Nelson at Ticor Title of Nevada, Inc.

What happens after foreclosure?

How long can you stay in possession after foreclosure?

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Here's why I love Nevada

I'm a Nevada native, and I've lived in Reno most of my life. I love it here.

Last week I had the opportunity to go deer hunting with my son in northern Humboldt County, Nevada, near Denio and the Oregon border. It stormed much of the week, and we were often in the mountain clouds. On our last morning the storms cleared for awhile, and we were treated to some spectacular Nevada scenery.

The deserts of Nevada often yield great beauty.

Washoe County Foreclosure Statistics Sep 09

This month Ticor Title added Notices of Sale and Trustee Deed filings to their Notice of Default statistics. The addition of this information really rounds out the foreclosure picture and shows the relationship of these three foreclosure statistics. It's another look at the shadow inventory which I have previously discussed in this blog.

This chart is posted with the kind permission of Ben Nelson at Ticor Title of Nevada, Inc.