QUIT CLAIM DEEDS: Many homeowners will execute a quit claim deed transferring title to their property (ex/ Bob, the sole owner of a property, wants to add his sister Sue to his property.  Bob signs a quit claim deed transferring the title from Bob to Bob and Sue, as joint tenants).  This seemingly simple transaction can have adverse consequences for Bob.  First, this transfer may void Bob's title insurance policy that he likely received from the seller of the property when Bob purchased the property.  Second, if Bob has a mortgage on this property, the transfer from Bob to Bob and Sue is likely a violation of one of his mortgage covenants and may result is his lender accelerating the note.  This means his entire unpaid mortgage balance may be immediately due and payable.  BE CAREFUL OF THE QUIT CLAIM DEED.

BUYING AN REO (i.e. bank owned) CONDOMINIUM OR TOWNHOUSE: Buyers looking to acquire REO properties belonging to a common interest association, such as often the case with a condominium or townhouse, ought to be aware of the recent legislation that allows the association to charge the buyer up to 6 months of unpaid assessments PLUS legal fees incurred by the association in pursuing the prior owner (i.e. the person or entity that lost the property in the foreclosure process) for unpaid assessments.  In some cases, this can significantly increase the cost of the acquisition of the property.

SHORT SALE NEGOTIATIONS BY ANYONE OTHER THAN YOUR ATTORNEY: Many of our clients are approached by individuals who want to "help them out of debt" by helping them do a short sale of their home.  Some of these unscrupulous individuals might even suggest an attorney for you to use so it appears that you are getting legal advice.  Insist that your attorney is the only party to negotiate your short sale.  An attorney has ethical responsibilities to his or her client and will help ensure that you understand the potential benefits and consequences of your short sale transaction at every stage.

DEBT CONSOLIDATION PROGRAMS: Most debt consolidation programs work on the premise that they can negotiate lower payments with your creditors by forcing you into default on your obligations.  Usually, the full amount of your first 4 to 8 payments will go directly to the debt consolidation company and not to your creditors.  This means that you will miss, on average, 4 to 8 payments to all your creditors before the debt consolidation company will begin to negotiate with your creditors.  Just ask to see an "amortization schedule."  Many of these companies will not be able to tell you what portion of your debts you will pay over time, let alone which creditor will paid in the first few months.  They do not tell you that there is no guarantee that your creditor will agree to their proposed plan.  And, you will end paying more for the services of most debt consolidation companies than you would if you hired an attorney.  Remember, only lawyers are allowed to give you legal advice.  Be careful of debt consolidation companies!