Sweeney Law Offices, PLLC

06/18/2024

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05/23/2024

Is your pet insurance worth the price? Buyer beware!

03/16/2024

The End of Traditional Realtor Commissions: A New Era for Buyers and Sellers

The real estate industry is standing at a pivotal crossroads due to a recent settlement that has upended the age-old commission model. The customary 6% realty fee, traditionally split between buyer’s and seller’s agents, is no longer a market standard, paving the way for new negotiation dynamics and fee structures.

This paradigm shift prompts a critical examination of the old incentive system where higher property prices resulted in heftier paychecks for buyer’s agents, ostensibly benefitting both parties. However, today’s market-savvy buyers often commence their property searches online, making one wonder about the value proposition of a buyer’s agent who is not financially motivated to press for a lower price.

Take the instance of purchasing a $1 million house. A $60,000 commission—once evenly split between agents—raises eyebrows when questioning the true cost-to-service ratio. The reformation opens the door for attorneys to step in as negotiators for buyers, working at hourly rates with a clear directive to lower costs, potentially providing a more cost-effective and goal-oriented service.

The shift could also lead to a significant exodus of buyer’s agents from the industry. The absence of predictable commissions might drive them to seek retainers, but buyers, especially those reliant on mortgage financing, may find such upfront costs daunting.

A silver lining, however, emerges in the potential decrease of “steering”. Agents have been known to favor properties offering higher commissions, often bypassing FSBO (For Sale By Owner) listings. The new norm could democratize property exposure, offering buyers a more comprehensive view of the market and sellers, even without agents, a fair chance.

In essence, while this transition challenges conventional practices, it heralds an era of transparency and equity in real estate transactions. The alignment of fees with actual service, the potential for more vigorous negotiation, and an equitable market for all listings, could redefine the value of a home purchase, placing the true interests of buyers and sellers at the forefront.

09/26/2023

How U.S. Households Got Turned Upside Down by Higher Interest Rates

A new reality has finally started to set in across American households: Higher interest rates are here to stay.

07/07/2023

Want to refinance to pay off unsecured debt? It’s an even worse idea now.

The average rate on the popular 30-year fixed mortgage hit 7.22%, according to Mortgage News Daily.

11/15/2022

https://www.cnbc.com/2022/11/15/household-debt-soars-at-fastest-pace-in-15-years-as-credit-card-use-surges-fed-report-says.html

Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances.

11/05/2022

https://studyfinds.org/debt-american-owes-25000/

It turns out most people are still struggling in the wake of the pandemic, with 51 percent saying they're still living paycheck to paycheck.

10/15/2022

Student loan forgiveness has arrived! Click here:

10/06/2021

Now that foreclosures and mortgage defaults are rising once again, don't get scammed by fake companies promising to help you with a loan modification, forbearance, or getting you caught up on your mortgage.

Here are the warning signs you may be scammed:

- The company is not licensed in the state in which they are located.
- The company requests money up front to assist, which is illegal under Federal Trade Commission regulations.
- The company offers 'legal help' or 'legal services', but there are no licensed attorneys in the firm (you can check at the local State Bar website.
- They ask you to wire funds to them for assistance.
- They called you on the phone, or showed up at your door.
- The company is based out of state (often in California, strangely enough).
- The company does not appear to have any reviews, or the reviews are a clear warning.

Before you pay anyone up front, look up the company on the internet, and check out their reviews. Feel free to contact me so I can see if they're legit. I'll look into it at no cost. Many of these 'companies' are fake websites set up by individuals from outside of the US who siphon your money without helping you. When it comes time to find out what's happening, your money is gone, and there's very little US law enforcement can do to help. Sometimes they will convince you to file your own bankruptcy case, or several cases on your own until by the time a real attorney steps in, it's too late to help.

Remember: it is illegal for any non-attorney to accept funds up front for a loan modification, or help with foreclosure. Attorneys who request funds up front for assistance with a loan modification are generally required to place those funds in a client trust account, and provide an accounting to you. Feel free to reach out if you have any questions!

07/16/2021

The foreclosure moratorium on government-backed mortgages is coming to an end this month, but that hasn't stopped homeowners associations and private lenders from trying to take your home. Learn how Sweeney Law Offices can protect you from losing your most valuable asset!

https://www.greatlakesdebtrelief.com

09/01/2020

With all the COVID-19 related unemployment, evictions and credit card collections you would think that bankruptcies would have increased, right? In fact, just six months ago I thought with all of the new cases I would be flying my newly purchased corporate spaceship to Mars and back. But alas, the expected rise in cases has not transpired. How could that be? Consumer debt was high and jobs were being wiped out. Well, there are two major factors that have contributed to a decline in consumer bankruptcy cases.

The first reason for the decline is that interest rates have remained incredibly low. If you track historical bankruptcy filing rates they tend to rise and fall in concert with interest rates. So if inflation goes up and the Fed decides to raise interest rates you can expect that cases will also rise. But there’s something more insidious happening that has caused a reduction in bankruptcy cases. Consumers are cracking open their retirement accounts and using the money to pay off unsecured debts.

At first glance you might think that’s an honorable or decent thing. Or you might surmise that it’s a good idea because later on if they have lower debt they can borrow more in an emergency. But the problem with this is twofold.

First, as you may have seen, the stock market continues to rise. Opening the retirement piggy bank to take money out now deprives you of experiencing any gains in the stock market. Second, you’re basically allowing the banks to use your retirement money. I want you to think very carefully about that sentence. Say it again to yourself. You are giving away your retirement money. This is money that you have earned tax free for many years, possibly decades. This is money that you need to rely on in your old age. It’s money that will cushion the blow from higher consumer costs. It could keep you in your house. It could make sure that you’re eating or paying for hospital bills. Or it could mean the difference between you being a millionaire and a pauper.

Why would anyone do such a thing? Well, the first answer is that it’s probably a lot easier to take the money out right now. Certain legislation has allowed people to borrow or even take out more money from their retirement accounts if they had a hardship related to COVID-19. The second answer is that people tend to be more worried about their credit cards than they are about their mortgages, or their future. I can’t count how many clients are more interested in paying down credit cards than staying current on their mortgage even though they don’t live in their credit card. That may be because credit card companies are very aggressive when it comes to collections actions. If you miss a payment or two they start calling right away and after three months they may hire a collection attorney and take you to court. So folks legitimately get worried about being yelled at or losing access to ‘emergency funds’.

But in almost all situation it’s a terrible idea is to use your 401(k) or your 403B or any of your retirement accounts to pay off an unsecured debt. It’s ridiculous. And here’s why. In chapter 7 and chapter 13 bankruptcy your retirement plan is, in almost all cases, completely exempt. That means that creditors can’t take that money or count it against you when it comes to paying them back.

You could file a bankruptcy and potentially pay zero back to your creditors and keep 100% of the money in your retirement account. Your future self will be so happy if you do that. But if you spend that money to pay off Capital One or any other Wall Street firm, your future self will be terribly upset, and possibly broke, homeless and hungry. So before you borrow from your future, contact your local bankruptcy attorney. While bankruptcy may seem like an emotional decision, it’s a financial one. And often times when you’ve lost income, it’s the best financial decision you can make not just now, but for your future.

05/23/2020

As we remove our economy from that of China’s, US corporations are going to use robots instead of hiring workers. Moreover, we’re going to have less access to technology and certain goods, raising prices. The inflationary effect on the economy will be devastating. Act accordingly.

Nouriel Roubini predicted the 2008 crash. Now, he’s warning that the America is hurtling toward food riots — and then a decade-spanning depression.