Monday, April 29, 2013

HARP Has Been Extended to December 2015!

The Federal Housing Finance Agency (FHFA) announced the extension of the Home Affordable Refinance Program (HARP) for an additional two years. It was set to expire this year, but now it won’t expire until December 31, 2015.

The program was originally set up to in March 2009 to help underwater and near-underwater homeowners refinance their mortgages. The objective of HARP is to help homeowners refinance their current mortgage to obtain better terms, such as a lower interest rate and smaller payments. Almost one million people have taken advantage of the program.

Of course, not everyone is eligible. Generally speaking, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. Further, you must be current on your mortgage and not have had a late payment in the past six months. Also, you must have the reasonable ability to pay under new, presumably better, mortgage payments.

How do you know if Fannie Mae or Freddie Mac owns or guarantees your loan? Check out the following websites and enter your information: www.fanniemae.com/loanlookup and www.freddiemac.com/mymortgage.

For more information about HARP, review the website at www.harpprogram.org.

Thursday, April 25, 2013

Your In House Lawyer: How Specific Should Your Non-Compete Clause Be?

Your In House Lawyer: How Specific Should Your Non-Compete Clause Be?: When drafting a non-compete clause from the perspective of the employer, it is important to ensure that it is tailored for each employee or ...

Wednesday, April 17, 2013

Tax Credits - How Hollywood Can Help You

If you're like me, you spend too much money on movies.  Here's how to possibly get some back.... 

The Georgia Entertainment Industry Investment Act could help save you thousands of dollars. In an effort to attract Hollywood, and the money that goes with it, the State of Georgia provides companies with up to a 30% tax credit for spending $500,000 or more on production and post-production activities in Georgia. What an outstanding opportunity for you and I!

How you might ask? How could we possibly benefit from a tax credit given to a Hollywood movie maker? Easy, buy the credits from them at a discount. Some of the high-rolling production companies end up with millions of dollars in Georgia tax credits, many millions more than the company’s Georgia tax liability.

Under certain circumstances, those tax credits granted to a company under the Act may be transferred or sold to Georgia-based tax payers. Keep in mind, though, you’ll want to do your homework. Always consult a certified CPA prior to considering any such purchase to determine the tax effect on your situation and whether or not such a move would be in financially in your best interest.

In addition, consider the legal aspects of the transaction. The seller will need to make a number of important legal representations and warranties concerning its authority to sell the credits to you and the status of the credits. For example, you’ll want to ensure the seller has a certification letter from the Georgia Department of Economic Development, which letter states at least the following: the certification number, the project at issue meets the certification requirements of the Act, that the seller is eligible to claim the tax credits, and for what year the seller may claim the credits. After all, the credits aren’t valid forever.

Furthermore, you’ll want to ensure that the seller indemnifies, defends and holds you harmless from any claims or damages that may arise out of any false claim the seller makes in connection with the transferred tax credit. Accordingly, to ensure that indemnification clause is worthwhile, you’ll want to be sure that the company selling you the tax credits is a financially strong and viable company.

There are many other financial and legal considerations in connection with purchasing such tax credits, but hopefully this article got you thinking….