Author: Nicole Jessen

Can a business be compensated for loss of business goodwill in an eminent domain action if the business had no goodwill to lose?

Facts: A business owner operated their business on a parcel of land. The business had yet to become profitable. The state condemned the property through eminent domain and compensated the owner for the taking in an amount which did not include compensation for any loss of business goodwill. The owner hired an expert to determine the amount of business goodwill lost due to the taking, who determined the owner lost a quantifiable amount of business goodwill.

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Is a buyer eligible for the first-time homebuyer’s tax credit when purchasing property indirectly from their parents?

Facts: A minor received settlement proceeds after suffering a trauma. A guardian was appointed to oversee the proceeds. Later, the minor’s parents became delinquent on their mortgage. The guardian purchased the home for the outstanding balance of the mortgage from the settlement proceeds in the guardian’s own name. The guardian then transferred title to the minor. The guardian claimed, on the minor’s behalf, a first-time homebuyer’s credit on the minor’s federal income tax return.

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Is a lender required to offer a permanent loan modification to a HAMP borrower who successfully completes a trial period plan?

Facts: A distressed borrower applied for a loan modification under the Home Affordable Modification Program (HAMP). The lender prepared a trial period plan (TPP) stating the borrower will receive a permanent modification if they make trial modification payments and submit qualifying documents. The borrower successfully made all TPP payments and submitted the required documents but the lender denied the borrower a permanent loan modification and the home was later sold at a trustee’s sale.

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Can a borrower pursue a lender who purchased the assets of the original lender which failed to properly disburse the borrower’s funds?

Facts: A borrower obtained a construction loan from a lender. The lender did not properly disburse construction funds, delaying construction and causing the borrower to incur increased costs. Later, the lender went into Federal Deposit Insurance Corporation (FDIC) receivership and its assets including all loans and commitments were purchased by a second lender under a purchase and assumption (P&A) agreement. An abridged version of the P&A agreement was published on the FDIC’s website, stating the second lender only purchased the failed lender’s assets and did not assume liabilities associated with borrower claims arising out of the failed lender’s lending activities.

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