CFPB Warnings on Student Loan Consolidation Scams

  • By David Soble
  • 14 Jun, 2017

American Public Media, Marketplace Money

Candace Manriquez

Friday, July 18, 2014  

Here’s a handful of student loan numbers for you. According to the Consumer Financial Protection Bureau, current student loan debt is nearing $1.2 trillion. An estimated 7 million borrowers are now in default; behind on $100 billion in debt.

All of which adds up to a juicy market for companies looking to cash in on people with student debt troubles.

This week, Illinois Attorney General Lisa Madigan filed suit against two student-loan debt-settlement companies.  The suits allege that Broadsword Student Advantage  and First American Tax Defense  tricked borrowers into paying upfront fees for student loan help the companies didn’t provide.

According to one of the filings, First American Tax Defense promised enrollment in a fake “Obama Forgiveness Program.”

Madigan said these companies run ads that entice people excited to call, “and what they really find out is that these are scam artists [who] want their money.”

In a 2013 report , the National Consumer Law Center found that  “a new ‘student loan debt relief’ industry has sprung up in response to the demand for borrower assistance and the dearth of reliable resources.”

“There’s a lot of debt, it’s very confusing,” said NCLC attorney Persis Yu. “I think some borrowers are desperate and they are turning to places that look like they might be an easy fix.”

She says many of these debt-settlement companies mischaracterize government programs as their own.

They charge borrowers as much as $1600 for services, like debt consolidation, that are available from the government for nothing.

“What’s making this possible is a lack of awareness of repayment options,” said Mark Kantrowitz, student financial aid expert from

He says the government should run an ad campaign of its own, so students with debt know what help is available for free.

If you are struggling to pay back your federal student loans, here are your options:

  • Direct consolidation: If you have multiple federal student loans you can consolidate them into one payment and extend the life of the loan to 30 years to lower monthly payments.
  • Extended repayment: Borrowers with more than $30,000 in debt can extend the repayment period from the standard 10 years up to 25.
  • Graduated repayment: Borrowers who choose extended repayment can also set up monthly payments that start low and grow every two years.
  • Income-based repayment: Your monthly payment is pegged to your income and can be adjusted annually to account for income fluctuations. The term of the loan can also be modified to go beyond 10 years.
  • Income contingent repayment: Your payment based on your monthly income and any outstanding debt is cancelled after 25 years.
  • Pay-as-you-earn: For borrowers who took out loans after 2007 and have a family or financial hardship. This income-based plan offers the lowest monthly payment options of any income-based plan.

How to spot a scam:

  • High-pressure sales tactics, like suggesting your interest rates are about to skyrocket, without debt consolidation.
  • Charging fees before debts are settled
  • Touting a "new government program" or suggesting they have special access to government programs
  • Claiming to represent the Department of Education or other government agency
  • Offers of discounted pay-back rates, gifts or special incentives
  • The hard sell, plain and simple


By David Soble 15 Aug, 2017

The “ Great Recession ” in 2008 has had a lingering effect on how banks lend money to small business owners  and entrepreneurs.  Gone are the days when small businesses have  fast access to bank credit at competitive interest rates. Instead, alternative non-bank lenders, led by companies such as On Deck, Yellowstone, and Cash King, are filling the lending void, growing rapidly on the backs of unwary small business owners.

Here are 5 things small business owners should consider before taking out an “alternative” business loan:

1. Rates That Make Former Sub-Prime Mortgage  Lenders Blush.  High rate loans are the rule rather than the exception for alternative lending sources.  These lenders are not banks and therefore are not federally regulated, unlike companies that provide loans to consumers.   Instead these loans are often  funded by private investors selling credit at effective annual rates that commonly exceed 30%.

2.  Non -cancellable Daily ACH’s.  Since alternative business lenders don’t look at individual or business credit ratings, their risk of not getting paid back is high. They rely on a business’s cash flow only and expect to be paid daily rather than monthly, by using a non-cancellable automatic payment deduction (“ACH”) out of the borrower’s account. The lender can immediately call a loan in default should a business owner fail to replenish their designated account. This exposes the borrower to litigation and further expenses.  Borrowers should be confident that they can meet their daily, rather than monthly, obligations.

3. Arbitration.  Alternative loan contracts generally have expensive arbitration clauses where the debtor agrees to forgo the traditional legal process for a binding decision from designated arbitrators. Arbitration clauses are not favorable to borrowers. They often dictate where a legal case can be heard, usually in a creditor friendly state far removed from the borrower. This creates added expenses to a case even before it’s heard on the merits.   Arbitration decisions usually cannot be appealed (“ binding arbitration ”).  Finally, professional arbitrators have been criticized for having biases in favor of lenders since successful arbitrators make their living from work referred to them by the lending industry.

4. Consent Judgments.Many lenders have business borrowers essentially endorse a “consent judgment” before the the ink is even dry on the original lending agreement.  In a consent judgment, the borrower admits to a default and to the terms of a judgment against them, waiving any legal protections that they might otherwise have.    Lender’s will say that this instrument is harmless and only used in the event of an actual default.  It’s a disturbing trend because it sets the borrower up for failure and legally neutralizes them. (Imagine a hospital locating a corn beef stand next to the cardiac care unit or meeting a bank’s REO bank officer right after you close on the purchase of your home.)

5.  Personal Guarantees.While the business loan is given to the business in name, the small business owner often personally guarantees the payments in the event that their business fails. Personal  loan guarantees are an integral part of the lending agreement, so borrowers should think carefully before signing. Lenders will look to the former business owner to make payments long after a business closes it doors.

Alternative business loans appeal to business owners because the loan process is much  faster than traditional lending sources (some lenders say a loan approval can be given in less than 48 hours) and there are no personal credit requirements.  If you don’t need the money  “yesterday” (these type of lenders anticipate that you do) then one should seek assistance through a non-profit dedicated to helping business owners in all areas of business and finance, a SBA lender ( Small Business Administration ), or the assistance of a knowledgeable business attorney who can help you negotiate a far better loan agreement.

About the Author:  

 Since 1990, David Soble  has represented lenders, loan servicers, consumers and business owners on residential and commercial real estate, finance and contract issues. He has been involved in thousands of real estate transactions and has been responsible for billions in real estate loan portfolios throughout his career. 

By David Soble 15 Aug, 2017

According to business periodicals such as  Entrepreneur Magazine , Inc. and  Forbes , with the beginning of each year comes an increase in new business start-ups.  Perhaps this is because people are seeking an increase or alternative means of income,  job independence, or a more rewarding career. Whatever the reason, since the  Great Recession  of 2008, new business filings trend upwards this time each year.  

Regardless of the time of year,  new business owners tend to overlook 3 important considerations that expose them to financial risk and legal liability.  They are:   

1. Meet  Filing  Requirements.  Corporate filing and licensing is a mundane but necessary task.  Without proper paperwork, a business may not have “standing” to bring a suit in court because they are not recognized as a legal entity authorized to perform business.  Seeking to collect past monies owed or to enforce a contract?  “ Lack of standing ” is a valid defense to a lawsuit  On another note,  if you intend to conduct business in another state, you must also meet that state’s corporate filing requirements as well.

2.Create A Meaningful Operating Agreement.   Creating a business entity without an operating agreement falls short of good business planning. Failing to detail your own operating agreement generally means that in the event of a dispute or corporate governance problem,  less favorable ‘boiler -plate” language from a legal form “factory” or state statutory language could be substituted and control how your business relationships operate -contrary to your initial intent. This is especially true where multiple owners are involved as disputes will  invariably arise.  

If a business relationship falls apart (The  Small Business Administration  statistics state that one-third (⅓) of all new businesses close in the first 5 years) it’s best that business owners have predetermined  termination terms in their operating agreement, as opposed to having terms imposed upon them by statute or third parties such as an arbitrator.

3. Read and Understand  Contract  Terms .  Conducting business on a handshake, however sincere, is a thing of the past and impractical in today’s fast -paced global economy.  Business owners encounter contracts in all forms: service agreements, leases, loan agreements, guarantys,  joint ventures, co-marketing, purchase agreements and client agreements are to name but a few. Reading through just one of these documents can be daunting and time consuming.  Most “boiler -plate” contracts are drafted by attorneys and have extensive and onerous “default” provisions.  Don’t “ sign on the bottom line” until you have read your contract for meaning.  If you don’t understand how a contract provision affects you and your legal rights, then by all means consult with your own attorney–not a real estate or leasing agent,  not your cousin in law school, and certainly not ‘their’ attorney.  Consult with your  O-W-N  attorney.  And do it before, not after, you sign a legally binding document.

Never is the old adage, “an ounce of prevention is worth a pound of cure” more appropriate than in today’s business climate.  Experienced business and real estate attorneys regularly address countless variables experienced by businesses just like yours.  Many attorneys will provide new entrepreneurs with a free initial consultation and it’s a solid business decision to take such a meeting.

About the Author:  Since 1990, attorney David Soble has been responsible for billion of dollars in real estate and finance matters representing the interests and legal needs of both small business owners and consumers alike. David can be reached at 888-789-1715.

Disclaimer: You should not rely or act upon the contents of this article without seeking independent legal advice from a qualified attorney.

By David Soble 01 Aug, 2017

I just read about a tragic and avoidable event that happened last week. According to The Washington Post, a Manhattan couple jumped to their deaths from the ledge of their 9th floor apartment. The couple, a chiropractor and his wife, reportedly left a suicide note citing their ever increasing debts as the reason for their despair.  Apparently, they were good people; They were well liked by their friends and patients. They are survived by their two children. ( See The Washington Post, July 29, 2017 .) 

After reading this article, I was immediately taken back to the events of 2008 and the devastating financial wake of the Great Recession. Many businesses and lives were ruined - all because of debt.  I know. As the chief enforcer / attorney for several national lending institutions, I was in the thick of it.  I was responsible for the collection of billions in defaulted loans and my job was to vigorously pursue delinquent debtors and ‘cure’ non-performing loans.

Even in today’s economy there are still people who struggle financially for a number of reasons that include, but are not limited to, underemployment and stagnant wages.  Here are 5 things I wish to impart to those who are burdened with mounting debt and the ever-advancing debt collectors:  

1. Communicate. While it may not feel good,  keeping the lines of communication between creditor and debtor benefits both parties.  Believe it or not, banks and creditors want to work out payment arrangements as opposed to litigation.   Ignoring and avoiding creditors gives a creditor no alternative but to escalate a collection action. This increases debtor anxiety and reduces opportunities for a reasonable settlement.

2. Contact a professional early in the process.

For those who are uncomfortable with negotiations or confrontation,  contacting a professional about a debt issue may be the answer.  For small loan balances, reach out to a non-profit credit or debt counselor early in the process. Larger note obligations or guarantees require the attention of a seasoned professional.

I am frequently retained by clients only after they have already been “steam rolled” by their creditor. These clients thought they could “go it alone.”  I can tell you that cleaning up a legal and financial mess after the fact is far more challenging and expensive than when someone comes for legal advice at the onset of their problem.  (See my article, “Just What Is The Law of Holes?” at ).  Dealing directly with a creditor without proper representation is not the best approach and most often costs a debtor more money in the long term.

3. Don’t bring a knife to a gunfight.

The American Bar Association lists over 75 practice areas of law. Not all attorneys specialize in debt or loan law.  Speaking with the appropriate attorney can prevent costly mistakes. While at the banks,  there were many occasions  that I had the pleasure of sitting across the table from a debtor’s divorce attorney or personal injury attorney. It made my job easy and I welcomed them.  The old adage,   “don’t bring a knife to a gunfight” is never more true than in lending and finance law where debt agreements are usually complex and highly regulated.

4. Beware of  scam artists - they’re everywhere .

Avoid individuals and companies that aren't properly credentialed and that have not been rated by their industry peers.  In fact,  when it comes to consumer issues, almost all professionals working with the public require a state or federal license. Verifying an adviser’s competence and reputation should be a debtor’s top priority.  Today as  I sit to write this article,  The Washington Post features an article about how a California modification scam recently swindled thousands of homeowners out of their home equity, and many lost their homes because of it. Remember:  “Trust but verify.”

5. It really will be okay.   Sure it sounds simplistic and trite, but with the right professional guidance and some patience,  the sting of debt issues subsides over time. There are many ways to successfully approach serious debt issues without filing bankruptcy, such as seeking a court ordered installment payment plan, graduated settlement options, structured debt forgiveness,  and being declared ‘uncollectable.”   To learn more about these and other options one has to actively seek help. (According to a poll, 85 percent of respondents said they were unlikely or somewhat unlikely to talk with a stranger about credit card debt -- a subject that is more taboo than religion, politics, salary and love life details.)  

Conclusion. Nothing is more professionally and personally gratifying than helping a business owner or individual through the darkness that is mounting installment or revolving debt. I have ushered thousands of people through their debt issues, without bankruptcy, and after they successfully enter into a negotiated settlement, the difference in their demeanor is truly night and day. Once debt problems are resolved, it is as if you can see the heavy financial burden lift off a client’s shoulders. I only wish the poor couple from Manhattan could have known this relief as well. R.I.P.

About the Author: Since 1990, Michigan attorney David Soble has represented lenders, loan servicers, consumers and business owners with legal matters related to finance and real estate.  He has been involved in thousands of real estate transactions and has successfully negotiated and saved millions for his clients.

Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own, qualified attorney.


By David Soble 30 Jun, 2017

 This week, the FBI and local law enforcement officials raided the business offices of realtor Ralph Roberts .  Roberts is the subject of an ongoing criminal investigation and several news probes.  In controversy is his alleged ‘misuse’ of the Michigan public administrator system. It’s supposed that Roberts finds properties of deceased homeowners, uses a public administrator to open an estate in probate court,  and then bills the estate for his sales commissions and other “services.”

 At first blush, I find Robert’s alleged sales practices ignoble, to say the least.   But until the authorities release more of their findings, I am not convinced that this contentious salesman has done anything illegal.  What this investigation does confirm however,  is that in the business of real estate, people are always looking for another ‘angle’ to make ‘big’ money, and every so often, they will knowingly cross the line to the detriment of unwitting homeowners.  

 Here 7  things you can do to protect your real estate from “charlatans’ and (frankly) from yourself: 

      1.    Say no to blank documents.  Never sign any blank documents. If you are unsure, make a large “X”on the blank page, and then sign beneath it.  Similarly always retain a copy of your signed contracts.

      2.   Know before you sign. In the real estate business, written contracts define relationships, obligations and one’s legal rights.   If you read a contract and don’t understand it, don’t sign it. Also, never rely on an explanation of “how things work” from the party who stands to benefit from your lack of knowledge.

     3.     “Fake” attorneys . Similar to the preceding paragraph, don’t accept legal advice from someone who is not a licensed attorney.  Accountants, doctors, real estate agents, mortgage brokers, or the county clerk are not attorneys and cannot dispense legal advice or draft legal documents.  In other words, ignore the outside chatter of your “mother’s friend’s sister’s son.” Odds are (1)  they aren’t an attorney, (2) their situation has a different set of facts and is not completely on point, and (3) they won't be there for you when @#$%@# hits the fan. 

     4.     Record your property interest. Always record your property deed with the county in which your property sits. Holding onto an unrecorded deed does little good to notify the world that you have ownership in a particular piece of real estate.  If you ‘snooze’ and don’t record your property interest, you can ‘lose’ your property rights. 

     5.     Save the D.I.Y. for Home Depot.  Drafting your own deeds or other legal documents without the proper language and legal guidance is a recipe for disaster.  Unwinding a real estate transaction (or any contract for that matter)  involving a person(s) that you have grown to hate, can be very expensive and emotionally draining. It only becomes worse when you find out that your D.I.Y. contract inadvertently gave another party more legal rights and protections than you gave yourself.    

     6.     Open your mail, @#$% - it.  Unless you’re a clairvoyant, open your mail.  Important legal notices that affect legal rights come in the mail. They aren’t often texted.  Legal processes have sensitive timelines.  Miss a legal deadline and it becomes almost impossible and very expensive to reinstate your rights.   People pay more attention to what they’re going to “binge watch” on Netflix than they do to their legal rights. Give your legal issue the proper attention it deserves so that later on you don’t have to devote all of your time, energy and money to cleaning up a legal mess.  

      7.  Consult with an attorney before “Google.” Our property laws are deeply rooted in centuries of legal history and case law. Lawyers devote years of their lives to their legal education and to their practice to perfect their craft.  One or two Google search results cannot adequately address a legal problem.  Consult with an attorney who specializes in your area of concern.

      Bonus Item.   In the real estate business, nothing of value is free. There is tremendous value in seeking “preventative” legal advice, but beyond that and above all else, when it comes to all of those “great” real estate deals that your friend or family member has turned you on to...remember this one axiom, ”nothing of value is free..”..repeat….”nothing of value is free”  ..”.nothing of value is free....”


       About the Author:   Since 1990, Michigan real estate and finance attorney David Soble has represented lenders, business owners and individuals in real estate, loan, and contract matters.  He has structured countless real estate transactions worth millions,  and has successfully saved millions of dollars for his business and consumer clients.

       Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own, qualified attorney.


By David Soble 14 Jun, 2017

HOW TO LOSE $1,729,631

Over the last two months, several clients  ( prior to hiring me)  lost a combined total of  $1,729,631 because  (for whatever their reason), they failed to file  their real estate documents publicly with the county recorder.  Their  property rights  as evidenced by various deeds, trusts, assignments, land contracts, mortgages, and liens,  simply went unnoticed.  Most of the properties were lost to the taxing authorities or through foreclosure, because the clients were never notified of a property auction.   Other properties were sold or mortgaged to third parties who had no idea that my clients also had prior property claims.  Whatever the cause,  $1.7 million is an alarming figure when the solution against such loss is so easy.


Nationwide, state property laws encourage, but do not require, anyone with property interests to record them in their county recording office.   Recording  real estate transfer documents protect against situations where the same property interest is transferred multiple times, (ie. seller grants a mortgage for the same property to two different lenders).  State laws all but determine which party’s interest prevails based upon when a deed, a mortgage or other documented interest is filed with the recording office.  The laws predominantly favor those who properly record their property interests over those who don’t.  


Recording real estate documents into a property’s ‘ chain of title ’  provides “notice to the world” (known as “constructive notice”) of one’s property interest.  By not appearing in the title chain,  interested parties will not receive legal notices concerning the property, such as tax notices or lien filings.  More importantly, in almost all instances, good faith purchasers, lenders and other lien holders who are unaware of prior outstanding, but unrecorded property interests, have superior claims when challenged by property owners who failed to record their property interest.  


The list is not exhaustive, but generally all real estate deeds need to be filed. Where land contracts are concerned, it is important that the buyer have a Memorandum of  Land Contract  recorded.  Too often is the case where a seller has sold a property out from underneath a land contract buyer, all because no evidence of the sale was ever recorded with the county.  Most title or closing agents will file real estate transfer documents as part of their business for a small fee.   Lastly, mechanic liens, judgment liens or claim of liens against a property need to be recorded in a timely manner to be effective.  If you are unsure about filing requirements, contact a real estate attorney.  


Remember, in order to protect your property interests against title claims or loss, it’s important that your real estate documents show up  in the public  records 100% of the time.

About the Author:  Since 1990, attorney David Soble has represented lenders, loan servicers, consumers and business owners in real estate, finance and compliance matters. For over 25 years, he has been involved in thousands of real estate transactions and has successfully negotiated and saved millions for his business and consumer clients.

Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own, qualified attorney.

By David Soble 14 Jun, 2017

With the steady influx of property investors seeking to stake their claim in the phoenix that is Detroit, comes various investment property management challenges.   Listed here are 5 common problems that new real estate entrepreneurs face when moving to sever the  property rights  of a delinquent property owner or tenant:  

1. The Tenant / Occupant Won’t Leave.  Avoid ‘self- help.’   Landlord  ‘self-help’ for locking out an occupant is, with rare exception, illegal and has serious financial and legal consequences. The same is true for investors who seek to extinguish a mortgage or  land contract .  An eviction action is required when the former homeowner or perhaps event their tenant, remains in the property after the foreclosure redemption expires. The mere fact that the redemption period has expired does NOT give the lender rights to enter the property.  Shutting off utilities or changing door locks is considered ‘self help” and can expose an investor to liability in actions of trespass, property damage, and even emotional distress.    

Solution:  Legally sever the possessory interest  by filing an action for eviction and secure a judgement and writ for eviction. I know of  several cases where an investor is ready to close on the sale of their property, only to be sued by a former owner or tenant whose legal interest in the property had not been properly extinguished.

2.The Former  Property Owner  or Occupant Files  Bankruptcy .   Equally as serious as landlord ‘self help’ is when a creditor violates an automatic stay after the tenant or homeowner files bankruptcy.   An automatic stay halts all collection activities and this includes eviction and foreclosure actions.  The ‘stay’ has to be lifted by a federal court order. Creditors, such as landlords and mortgagees, who knowingly violate a bankruptcy stay face severe fines, sanctions, and attorney fees. They may even have to pay damages.  

 Solution:  Once notified of an occupant’s bankruptcy, stop any and all collection efforts until you have a signed order “lifting the stay”. When in doubt, consult with legal counsel.

3. Failing to Understand Choices of Rights and  Remedies.   Investors, particularly those who purchase out of state properties,  should know what type of property interest they hold and the legal rights that the interest affords.  In Michigan,  mortgage holders do not have a fee simple interest in a property, only a lien interest. So when a former property owner abandons the collateral, an investor cannot legally sell the home until they foreclose out the homeowner’s interest or unless they obtain a Deed in Lieu of foreclosure.

More importantly, investors need to know which legal process to use in order to accomplish a specific goal.  For instance, in a land contract matter, a judicial sale can be used to preserve a deficiency for a vendee’s default, whereas a land contract forfeiture gives the land contract vendor possession only.

Solution:  Investors should consult with a real estate attorney licensed in the  state where they plan to invest and clarify their legal rights before they engage in purchasing investment properties or pursuing legal action.    

4. Property Tax   Foreclosure .   It is not uncommon for investors to run up against property tax foreclosure deadlines as delinquent taxes are an inherent part of purchasing distressed properties.  Until proper due diligence is performed, it makes little economic sense to initiate any  legal actions  for foreclosure, eviction or forfeiture, if the property would only be lost to tax sale before an investor’s legal action is completed.  

 Solution: Perform a title search and make arrangements to pay the taxes before initiating legal action.

 5. Deeds in Lieu of Foreclosure .   A Deed in Lieu of Foreclosure (“DIL”) is a deed executed by the homeowner that satisfies a loan in default in exchange for the mortgage holder to forgo the foreclosure process.   However, taking a DIL without performing a title search or without drafting the proper supporting documents is rife with problems.

First, a DIL is similar to quitclaim deed in that the mortgagee takes title to the property with all liens, encumbrances and assessments that the former property owner  incurred on the property.  Sometimes the amount of liens are so excessive that it makes more sense for the investor to foreclose on the property and pursue a deficiency action against the former property owner.  

Second,, specific legal provisions are required in the DIL documents, without which,  an investor can experience difficulties foreclosing out subordinate lien interests or in obtaining title insurance for a later sale of the property.  

Solution: Perform a title search and if you plan to take a DIL, don’t do so without having a qualified attorney first prepare DIL documents.

6. Boilerplate or Self -Generated Documents.    There is an old adage that ‘ a contract is valid until someone legally challenges it.’  Property investors are often surprised to learn that their self- prepared documents may actually violate federal or state laws. Unfortunately they only discover this at court placing their own legal interests  in jeopardy. Indiscriminately using online or “boilerplate” forms to  prepare a land contract, private mortgage, or lease back can be legally hazardous.   For instance, selling back a property to a former homeowner raises federal compliance issues under RESPA (Real Estate Settlement Procedures Act) and leasing back a property to a former homeowner creates a landlord / tenant relationship that ironically requires the investor to obtain a certificate of occupancy and make city required repairs on the former homeowner’s home.

Solution: Rely on an experienced real estate lawyer to review and draft the state- specific contracts that will be used in property transactions.  It will reduce future legal headaches, losses, and uncertainties.    

Conclusion:  Don’t be the ‘Test Case.”  When in doubt of how to legally proceed with severing a former property owner’s rights, it is best for the new real estate investor to seek out an experienced real estate lawyer.  


About the Author: Since 1990, attorney David Soble has represented lenders, loan servicers, consumers and business owners in real estate, finance and business matters. He has been involved in thousands of real estate transactions and has successfully negotiated and saved millions for his business and consumer clients alike.

Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own, qualified attorney.

By David Soble 14 Jun, 2017

When clients are confronted with a complex legal problem that has a lot of moving parts, it can be difficult for them to  ‘see the forest through the trees’.  I offer clients overwhelmed by a complicated real estate or finance problem, the following 5 items to consider so they can effectively tackle their source of stress.

1.           Get organized. Staring at a pile of miscellaneous documents can weigh on one’ moral and motivation.   Take the time to sort important paperwork in manilla folders. For example organize papers by a vendor, an antagonist,  chronologically, by subject or concern, by contract, loan(s) or lease(s).  You’ll feel better once you’re organized and you’ll help your advisors address the problem more quickly.

2.          Define the “what” “when” and “how”.  Complex matters often have a series of tangled and interrelated problems.  Write down all the problems that present themselves in a particular situation. Then define how you intend to solve each problem. There may be several ways to approach each problem. List them.  Ask yourself, “what  can I do to create any movement that will make me happy with my progress?”  Now realistically define the time frame that you expect to address and be done with the problem.

3.         Prioritize.   Resolving complex problems requires one to prioritize each step or action  necessary for a resolution. Prioritize and strategize what has to occur first before you can move ahead to the next task.

4.         Don’t make quick decisions. Never let anyone, particularly the antagonist in your situation,  push you into making a decision.  Consider the “24 Hour Rule”.  Take 24 hours to weigh the pros and cons of a decision.  Remember, complex problems took time to create. Take time to think about the consequences of a decision.

5         Give yourself a break.    Ruminating about a problem 24/7 does not solve the problem. In fact it can stress your physical and mental health.  Think about all of the good decisions that you have made in the past under stress.  Eat well, rest and exercise for a clear head.

A mentor once told me that successful problem solving is like eating a whale –you have to eat it one bite at a time. Envision setting a table to feast on your problem — calmly organize your documents, define the problem(s), and prioritize your proposed solutions using realistic time frames that will make you happy with your progress.

By David Soble 14 Jun, 2017

Keeping Control of Aging Parent’s Property

Greater longevity for Americans has expanded the population aged 75 and over.  The  U.S. Census Bureau  states that the number of people reaching their 80s and beyond will sharply increase in the ensuing decades and as elderly parents age, more financial responsibilities are placed upon the shoulders of their adult children.  Senior housing issues are a genuine concern for adult children who want to ensure that their elderly parents can maintain personal dignity, safety and a sense of control while still living in their home.  Homes too,  are filled with much sentimental values and memories and these must be respected.

Here are several financial and housing considerations adult children should explore so that their parents can remain in their home:


Reverse Mortgage

A reverse mortgage is a residential loan specifically designed for seniors.  A reverse mortgage allows the homeowner to convert a portion of the home’s equity into cash, while eliminating the possibility of having to sell the home.   Aside from the fact that a reverse mortgage will deplete assets left to potential heirs, they must be paid off in the event the owner leaves the home for a year or more.  So in the event that an elderly parent will have to move to a different housing environment because of illness, the entire loan balance becomes due if the parent fails to return to their primary residence within one year.

Reverse mortgages generally require that the homeowner pay annual property taxes and in my experience this is a source of many senior homeowner defaults.  So before obtaining a Reverse Mortgage, one should consult with a real estate or elder care law attorney.

Conversion to  Rental Property

One option that is often overlooked by adult children is leasing the home to family members.  This provides some security that the home will be well maintained and cared for by a relative or close friend while one’s parent still remains in the home.   As with any business transaction proper due diligence should be taken with regards to drafting a lease agreement. Consult with an attorney for a thorough agreement.

Professional  Home Maintenance

Hiring a professional property maintenance company is one way to make sure that the home is maintained both mechanically and visually, reducing the physical demands of upkeep on one’s parent.   Having maintenance services will also free up the  time and energy needed to attend to a parent’s physical care.  Another consideration is that a well -maintained home is much easier to sell at a later date when necessary.

Make sure that the  property management  company is licensed and bonded.  In many states a real estate agent can provide property management services without holding any additional licensing.  But property management is a profession unto itself.  It’s best to confirm that an agent devotes a large majority of their business to home preservation and even better to hire a property management company that is referred by a trusted source.

Professional Personal Assistance

Most seniors want to live as independently in their homes for as long as possible.  There are options that exist to make this as convenient and dignified for senior homeowners.  Housekeepers can do the heavy cleaning, a visiting nurse can do home check ups and attend to other medical issues.  Seniors can even receive meals delivered daily.  Unskilled  Home Care  Services are increasingly popular these days, but adult children should perform  a thorough background check on such services.  See below.

  Protect Seniors From Scams Targeted at  Homeowners

The  U.S. Federal Trade Commission  (“FTC) regularly reports scams that are focused on senior citizens. Senior homeowners are easily targeted because they are often isolated from their neighbors and become easy ‘prey.”   Advise family members to never give out any sort of information over the phone or to respond to door to door solicitations.  Assist them with checking their bank records and credit reports often and to offer immediate assistance if their are any warning signs of abuse or fraud.


David Soble  is the principal of  Soble PLC and founder of Proven Resource LLC.  He has been a real estate and finance attorney for over 25 years and as a member of the National Care Planning Council (NCPC) he  focuses on senior issues as they relate to real estate and finance.

By David Soble 14 Jun, 2017

Assisting loved ones who begin to lose their ability to think clearly and make rational decisions is not easy.  It’s not uncommon for some elderly to become unable to make sound decisions about a variety of issues including finances , health care and managing themselves at home.  Below are a few legal options for children of aging parents to consider when assisting a loved one.

Power of Attorney

A Power of Attorney grants  legal authority  to an individual to make decisions on behalf of another. Laws for creating a Power of Attorney vary from state to state. They can be limited to specific issues or broadened to handle many issues such as personal and financial matters, including  real estate . In Michigan, a Power of Attorney addressing the sale or refinance of real estate must be filed in the county records where the property is located.

Advanced Directive

A person can use an advance directive to make provisions for health care decisions in case that person becomes unable to make such decisions. There are two main types of advance  directives : a Living Will and  Durable Power of Attorney for Health Care . In some cases, a hybrid of these two directives can be established.

Living Will

This is a signed, witnessed document called a declaration or directive which instruct an  attending physician  to withhold or withdraw medical intervention from its signer if the signer’s condition is terminal and is unable to make decisions about medical treatment.
Durable Power of Attorney for Health Care

This is a signed, witnessed document in which the signer designates an agent to make health care decisions on behalf of the signer if the signer is temporarily or permanently unable to make such decisions.  The agent in this case will have the authority to decide if health care will be provided, withheld or withdrawn from the signer.

Only a Power of Attorney that specifically addresses real estate will give the agent of the signor, usually an adult child, the authority to deal with a mortgage, loan or disposition of real estate while the signor is living.   The other ‘directives’ concern health care and related health issues. All three are significant to good asset planning and protection.

Consider speaking with a qualified attorney to learn more.

By David Soble 14 Jun, 2017


March 17, 2015

By: Bill Bischoff

Chances are you’ve spent plenty of your free time thinking about the money you’ll have available at retirement. But what have you done to plan out your estate? The sad truth is that most of us — some 70% of adult Americans — have neglected to  write  a will. Some think their assets are just too puny to worry about, others worry that the costs of writing a “last will and testament” are too high. But  wills  aren’t just vehicles for the wealthy or the morbid. If you’ve got a family and a home — not to mention a  savings account  — you should definitely have one. Cost is no excuse. While the average will drawn up by a lawyer typically runs from $500 to $1,000, you can get a simple will at a legal clinic for as little as $75 or create your own with an online vendor for even less. For most people, the first time in your life that a will becomes imperative is when you have children. Forget about your assets for a minute. In the terrible event that you and your spouse die at the same time without a will, it falls to a  probate court  judge to name a guardian for your minor children — not a pleasant prospect. That is why it is a crucial first step to name a guardian for your minor kids. Our experts recommend naming an alternate guardian in the document, as well, in case something happens to your first choice.

Writing a will, of course, is also your chance to clarify who gets what in your estate. Before you can do that, however, you have to tally up your assets. That includes your house, your investment portfolio, the value of your retirement plan account(s), and the payout(s) from any  life insurance coverage . After adding these things up, most folks discover that they are worth more than they initially suspected. Find your new home now ... Address, City, Zip Price Advertisement Once you’ve got your assets listed, you can decide what you want to leave to whom and who will be executor of your estate. One important caveat: Make sure that the beneficiaries listed in your will match the beneficiaries you name for your insurance policy and for your 401(k) and any other retirement accounts. If not, the beneficiaries named in these other documents will be the ones who actually get the money. Now, if you want to do any more complex estate planning, chances are you’ll have to set up a trust, which isn’t cheap.

They cost as much as $2,000 to $3,000 or more. The primary reason people go to this kind of trouble is to protect their heirs from having to pay hefty estate taxes that can turn their carefully built nest egg into chicken feed. Or to protect their heirs from themselves if they are — to put it kindly — not very financially astute. Remember: for every dollar you leave behind over the unified federal gift and estate tax exemption amount ($5.43 million for 2014), the  IRS  will take 40 cents for the federal estate tax. Once you have a will in place, don’t forget to update it regularly. You’ll need to amend it whenever there is a big change in your family’s circumstances — a birth, a death or marriage, or even if you move out of state. A will might seem like a hassle, but that is nothing compared with the hassles your heirs will experience if you die without one.

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