Welcome to Virtual Jeannie's August News

BUSINESS TIPS OF THE MONTH

This comes from Bill Matz from MastersTouch Mortgage Corporation. Bill has helped many people (including myself) with refinancing and other mortgage scenarios. This information may be very important to you or someone you know!

Lending Newsflash!

Congress just passed and the President just signed a bill designed in part to help prevent foreclosures. Beware! The phrase, "I'm from the government and I'm here to help you" comes to mind. While the details are still emerging, the preliminary reports indicate several potential problem areas:

The current lender must agree voluntarily to accept a payoff at 90% of current value.
Borrowers must qualify for a new loan.
The new loan will be limited to the very narrow range of programs and rates currently being offered.
Borrowers will have to pay substantial closing costs for the new loan or accept an even higher rate.
The program is limited to 400,000 loans, less than 15% of those facing foreclosure.
Borrowers may be required to share future appreciation.
The program is unlikely to be available for at least 60-90 days due to the need for implementing regulations.
The credit consequences of using this program are uncertain.

Given the rigidity of restrictions in the new law, it appears most borrowers will be better off with a negotiated modification with their existing lenders. A negotiated modification offers vastly greater flexibility in the new loan terms. But negotiated modifications achieve their best results (and may only be possible) when a knowledgeable, experienced, professional negotiates the appropriate modification.

Bill Matz, President/Broker
MasterTouch Mortgage Corporation
Phone 707-837-2161 x 121
Fax 707-837-2165
Email: matz@mtmort.com

GROWING MY BUSINESS

On that note... I am looking for those business owners who are aware that they may be operating inefficiently and need my help to increase productivity. I take the focus off of worrying about the status of their accounting. I am also very interested in preparing payroll for those small business owners who are ready for employees, but don't want to do the payroll themselves.

VIRTUAL JEANNIE VIRTUAL SPOTLIGHT

This month's spotlight is on Janice Sternfeld, Attorney at Law, a partner with Perlman & Sternfeld LLP, an Elder Law practice located in Santa Rosa. Her practice includes estate planning, Medi-Cal planning, probates and conservatorships. Her philosophy is to never allow a client to leave her office without a durable power of attorney. Janice may be reached at (707) 284-8698.

I have worked with Janice on a few conservatorship accounts and have found that she is very easy to work with. She explains things clearly and precisely, which is quite refreshing!

Do You Have A Durable Power Of Attorney?

Every day I have someone come to my office wanting a will or a trust because he or she wants to "make sure my property is taken care of if I die." But only rarely does an individual ask what will happen to everything if there is a severe illness or accident that leaves him or her disabled but very much alive.

A trust is extremely helpful if something happens to you, because it allows someone to step into your shoes as the "successor trustee" and manage those assets held in your trust just as you would on your behalf. But a trust cannot do the job alone, because not all assets are in a trust or even belong in a trust. For instance, in most cases you would not put a 401K in a trust, but there must be someone with authority to access the 401K if you become so disabled that you are not able to manage it yourself. The successor trustee cannot do that.

The real "hero" of legal planning instruments is the durable power of attorney. The durable power of attorney is a legal document which allows you to name an agent who will make decisions concerning your assets if you become unable to do so for yourself. You can grant the agent under a durable power of attorney, also called an "attorney-in-fact," broad powers to manage all types of assets for your benefit or the benefit of your family. By naming someone you fully trust and who clearly understands what your wishes would be under the circumstances, you can be assured that your assets will be managed the way you would want them to be managed. If something awful happens without a durable power of attorney, it may be necessary for those who care for you to go through a costly and difficult court process to appoint a conservator over your assets.

Durable powers of attorney are very cost-effective. There are statutory forms around you can get for free or for very little money that you can fill out yourself and have witnessed or notarized, but it is sometimes difficult to get title companies and financial institutions to accept these statutory forms. Most elder law and estate planning attorneys will draft a durable power of attorney specific to your individual needs for a very reasonable fee.

Whether you have a will or a trust or not, your assets will be taken care of when you die. To paraphrase something I once heard an insurance agent tell prospective clients, even if you think you don't have an estate plan, the state has one for you. But the state does not necessarily have a plan for management of your affairs if you live, but can no longer manage things for yourself. Having a durable power of attorney in place is the very best plan and if you don't have one, you should.

Janice may be reached at (707) 284-8698.