Financial services lawyers are attorneys who assist individuals and businesses with their financial legal issues. A financial lawyer often specializes in specific types of finance law.
Financial lawyers can assist their clients with a wide variety of financial issues. Finance law governs many different specific areas of law.
Finance law governs numerous different areas of law, including the rules that apply to financial matters. Finance law governs topics including:
Financial services lawyers can assist their clients with numerous tasks, which may include, but are not limited to:
- Banking matters;
- Consumer and business bankruptcy claims;
- Debts and collections;
- Insurance and annuities;
- Taxes;
- Wills, trusts & estate planning; and
- Securities law.
Financial issues are very important in most individual’s everyday lives. This may include investing money for retirement or purchasing real estate.
Financial services lawyers can help their clients with many different tasks. An experienced and knowledgeable financial services lawyer will be skilled in one, many, or all of the following areas:
- Consumer and business bankruptcy claims: Bankruptcy cases are often very complicated. Bankruptcy can also have a very big impact on an individual’s life. A specialized financial services lawyer will explain the individual’s rights and offer advice;
- If a business is involved in bankruptcy, a lawyer can advise how to best protect the company’s assets during the entire process;
- Debts and collections: A financial services lawyer can give advice about debt and collection laws. An experienced lawyer can ensure that any debt collectors are following the rules for collecting debt;
- A specialized attorney will have knowledge of debt collector harassment laws;
- A financial services lawyer can speak to collection companies on an individual’s behalf and help with a settlement plan for any debts owed;
- Taxes: Tax law can be extremely complicated. Depending on an individual’s specific situation, different tax laws will apply. A financial services lawyer that specializes in tax law can help the individual file their taxes. The lawyer will explain what tax laws affect their personal taxes or their business’ taxes;
- Wills, trusts & estate Planning: Wills, Trusts, and Estate Planning is another complex area of law. A financial services lawyer will guide an individual through the estate planning process. A financial services lawyer will make sure all of the legal documents are correct, valid, and properly signed; and
- Securities law: Securities law deals with the sale, purchase, and creation of security interests. Common examples include stocks and bonds. Many federal laws apply to securities.
Other issues that financial lawyers can assist their clients with include:
- Foreclosures;
- Mortgages; and
- Property tax.
What is a Foreclosure?
A foreclosure can be a devastating process for any family. This means losing a home and not being in a healthy financial situation.
A foreclosure occurs when a homeowner is not able to make their monthly mortgage payments and they are evicted from their home by the lender. A lender holds the authority to do so based on the contract that is signed by the buyer of the home and the seller or lender.
The home serves as collateral, which is stipulated in the contract. There are some lenders that provide a grace period in which the payment may be made before a foreclosure occurs.
This period, however, only lasts a couple of months before the property is foreclosed upon. In general, if a borrower is behind on payments, it will be more difficult to catch up on the payments because there are often late fees involved.
Each state has different rules and regulations regarding the foreclosure process. There are steps that must take place prior to the final step when the lender seizes a property using a foreclosure.
The judicial foreclosure process is used in 22 states. In this process, the lender is required to go through the court system to show that the borrower failed to make their monthly mortgage payments.
If the court approves the foreclosure, the local sheriff auctions the property to the highest bidder to recover what the bank is owed or the bank becomes the owner and resells the property. Other states use a non-judicial foreclosure process.
This process is also called the power of the sale. The non-judicial foreclosure process is faster than court intervention. Each state has its own set of regulations regarding what banks can and cannot do when foreclosing a home.
In general, a bank is not permitted to:
- Some states require a bank to determine if the homeowner qualifies for either a loan modification or some other type of assistance before foreclosing on the home. If the bank decides to do both at the same time, it is illegal also known as dual tracking;
- If the homeowner applies for some help or loan modification, the bank cannot start the foreclosure process;
- The bank must obtain a court order and file for an eviction before foreclosing the home;
- The bank cannot padlock the home if the individual is still living in it and;
- If the individual reinstates their mortgage before the sheriff sale, the bank cannot continue the foreclosure process.
However, there are some things that the bank is permitted to do during the foreclosure process:
- Banks can padlock the home if it is empty;
- The bank can seek alternative judgments if they are unable to sell the home at auction for what they are owed on the mortgage and;
- The bank can either request a non-judicial foreclosure or judicial foreclosure.
For more information of foreclosures, see the following LegalMatch articles:
What is a Mortgage?
Mortgages are loans that help individuals pay for things, such as homes, using payments over a period of time. There are two important documents to mortgage transactions, promissory notes and deeds of trust.
The promissory note is a legal contract which states that one party promises to repay a specific amount of money to the lender in a certain time frame and requires the borrower to pay back the loan even if they sell their property. A deed of trust serves as a lien on the property.
If the loan is not repaid as agreed, the lender can force the borrower to repay their loan by selling the property. For more information on mortgages, see the following LegalMatch articles:
What is Property Tax?
Property taxes are assessed on property that an individual owns. In many states, this type of tax is assessed on an annual or quarterly basis.
In some states, personal property, such as motor vehicles, are also taxed. The amount of property tax an individual will be required to pay depends on the state in which they live.
Although every state has a different tax rate for property, taxes are typically based on a percentage of the property’s appraised or assessed value. In many areas, an individual’s property tax bill may include:
- County or state taxes;
- City or town taxes; and
- School taxes.
For more information on property tax, see the following LegalMatch articles:
Do I Need an Attorney?
Financial issues are some of the most important considerations in an individual’s life. Finances allow you to care for yourself and your family as well as to save for your future.
If you have any issues, questions, or concerns related to financial matters or if you would like assistance with financial planning and tax implications, it may be helpful to consult with a financial lawyer. Your lawyer can assist you with any questions you have related to foreclosures, mortgages, or property taxes.
