You may have heard that HUD recently relaxed, under certain circumstances, the requirement that a seller hold a property for 90 days before selling to an FHA buyer. This so-called “Flipper” rule is designed to protect buyers, but HUD has found that in certain circumstances this requirement is inhibiting the revitalization of neighborhoods. The following information is a summary of the rule changes.

The waiver will take effect on February 1, 2010, and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.

• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.

The text of the full waiver, which is 5 pages long, can be found here:

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

In short, you can take advantage of this waiver under certain, well-defined circumstances. You are urged to consult with your tax and legal advisors to determine if the facts of your particular situation qualify for a waiver of the 90 day “seasoning” period in place for most FHA loans.

For a full discussion of your particular situation, please contact the experienced legal team at Pak & Moring PLC.

On September 4, 2009, at approximately 1:20pm, Governor Brewer signed HB 2008 which repeals SB 1271 and its changes to the Arizona anti-deficiency statute.  For now, Arizona’s Anti-Deficiency Statute will remain in favor of Arizona homeowners.

Expect lenders to be a little bit more favorable to loan modifications and short sales now that SB 1271 has been repealed.  For more information and how this may impact your situation, please call Pak & Moring at (480) 444-9999 to speak with an experienced attorney.

Car insurance companies in Arizona are required to offer a basic state-mandated policy, in order to provider coverage in case of injuries from accidents. Although it follows that the more coverage you purchase, the better you’re protected from financial risks, the state requires only that you meet minimum requirements. As such, Arizona law dictates the inclusion of both bodily injury and property damage minimums as part of this ‘basic’ level of coverage. The minimum required limits are $15,000 per person and $30,000 per accident for Bodily Injury and $10,000 per accident for Property Damage.

Despite the seemingly large sums, the state minimum policy is not all inclusive. This coverage pays for bodily injury to others for which you become legally responsible due to an auto accident in which you were involved. It does not pay for bodily injury you may sustain. Therefore, you would need to have Medical Payments coverage in order to have the injuries you sustain in an auto accident covered under an auto policy. If you would like to affirm that your insurance coverage is appropriate for your family’s needs, contact Pak & Moring for a consultation and evaluation of your automobile insurance coverage.

For more information about the specific types of bodily injury and proprty damage insurance mandated by state law, see the Pak & Moring blog post about Third Party Liability Coverage in Arizona.

Comprehensive coverage includes protection from the consequences of fire and theft, as well as vandalism, lightening, flooding, and other external factors outside of your control.  Comprehensive insurance is effective if you want maximum protection for your vehicle, especially if your vehicle is newer. Likewise, if you obtained a loan to purchase your vehicle, comprehensive insurance is generally required during the term of your loan. However, if you are driving an older vehicle which is paid off, you must weigh the cost of insurance coverage against the expense and inconvenience of paying for damages out of your own pocket in the event your vehicle is damaged.  Purchasing comprehensive insurance coverage is not required, but may be useful for your personal financial circumstances.

Collision Insurance – Collision coverage pays to repair, replace or reimburse you for property damage to your own vehicle.  Arizona law does not require you to purchase collision coverage to protect you in case of an accident.  But if you borrowed money to buy your vehicle or your vehicle is leased, the lender or leasing company will generally require you to have this coverage.  It pays for damage caused by a collision with another motor vehicle or with any other object, movable or fixed, including damages caused if your vehicle overturns. Collision pays for damages to your vehicle, even if an uninsured motorist or an underinsured motorist hits you or if you are responsible for the collision. You may buy collision coverage with a deductible option. Your deductible will be the amount you agree to pay from your own pocket for any damage. You may also buy collision coverage with different deductible amounts for each vehicle covered by your policy. To decide if you should buy collision coverage, consider the value of your vehicle. Also think about how you would pay to repair your vehicle if you do not buy this coverage.

Both comprehensive and collision insurance will generally have a deductible that you will be responsible for in the event you utilize either of these coverages.  Your deductible is the amount that you are responsible for paying out of the total cost of the damages, repairs, etc.  For example, if you have a deductible of $500 and your car sustains $5,000 worth of damage, the insurance company will pay $4,500 towards the repairs to your vehicle and you will be responsible for the remaining $500.

If you would like to affirm that your insurance coverage is appropriate for your family’s needs, contact Pak & Moring for a consultation and evaluation of your automobile insurance coverage.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)

If you are a passenger with coverage but the car you are riding in doesn’t have insurance when are involved in an accident
In most circumstances your personal automobile insurance may apply. As a passenger who is not responsible for the accident, you are likely entitled to the liability coverage provided by your insurance. However, all accidents and circumstances are different. To go over the specifics of your situation, contact Pak & Moring for a free case evaluation and see if you are entitled to compensation from your car insurance company.

What happens if an automobile accident occurs due to negligence on behalf of the driver when you are a passenger?

If you are riding in a vehicle when its driver causes an accident due to negligence, you may be able to make a claim against the driver. This means that with the help of an experienced attorney you may be able to receive funds from the driver’s car insurance company to pay for your medical bills, should you be injured. In addition, your own personal automobile insurance may apply and your medical care could be paid for if you have MedPay on top of your standard policy. Due to the fact that most accidents are different, you should contact Pak & Moring for a free case evaluation and see if you are entitled to compensation from the at-fault driver’s car insurance.

Multiple Coverages: Instances of Extra Protection

In certain accidents when multiple car insurance companies are involved, it becomes possible to file claims with several companies simultaneously. This is possible in incidents when you and the members of your household are covered by different auto insurance companies and both insurance policies can be relied upon if the accident involved a third party at-fault and caused harm to your or your family’s property. Filing multiple claims for a single accident on behalf of an injured party is rare, and all instances are different. If you feel as though your insured vehicle was damaged while a separately insured member of your household was driving, contact Pak & Moring for a free case evaluation and see if you can file claims with more than one car insurance company.

MedPay – Medical Payments benefits (or “MedPay”) provide an added layer of coverage within an auto insurance policy. In some states MedPay is known as personal injury protection, or “PIP” coverage. MedPay provides payment for necessary and reasonable medical expenses incurred as the result of a car accident. This coverage is available to you or passengers in your vehicle, regardless of who is at fault for the accident. Coverage limits are generally between $5,000 and $10,000 and can go toward paying your health insurance deductibles or out-of-pocket medical expenses incurred when seeking treatment following an auto accident. When you are not the at-fault driver in an accident, MedPay is an effective way to cover expenses if you are awaiting settlement from the other driver’s insurance company. The exact coverage and its specifics vary by insurer, and therefore, you should carefully review your policy for a complete and accurate description of the coverage provided.

Uninsured Motorist Coverage – Uninsured Motorist or “UM” coverage covers you as the policy holder, the insured members of your family and your passengers for any bodily harm, injuries, damages, or death caused by an uninsured or hit-and-run driver. If you are involved in an accident where the at-fault driver does not have insurance, your uninsured motorist coverage will cover your losses much the same way as the at-fault driver’s insurance company would. Generally, UM coverage will compensate you for your medical expenses, wage loss, and pain and suffering up to the limit on your policy.

Underinsured Motorist Coverage – Underinsured Motorist or “UIM” coverage covers you, the insured members of your family and any passengers in your covered vehicle for injuries, damages or death caused by the negligence of an at-fault driver who does not have enough liability insurance. If you have an accident with a person whose coverage does not fully compensate you for your damages, your policy will make up the difference, up to the limit of liability listed on your policy.

The limits of coverage for UM and UIM are dictated by the amount of third party liability coverage you have with your policy. The maximum amount of coverage you may be entitled to is limited to the amount of liability coverage you have. For example, if your limits of liability are 15/30 or $15,000 for the injury of a single person and $30,000 in total for all injuries suffered in a single accident, then you may not obtain UM or UIM coverage for more than those amounts. You may also opt to have lower UM or UIM limits than your liability coverage. For example, if your limits of liability are 100/300 or $100,000 per individual and $300,000 per accident, then you may request 50/100 or $50,000 per person and $100,000 per accident. However, we do not recommend reducing your UM/UIM limits because doing so will significantly impact your ability to recover damages you suffer at the hands of an under- or uninsured motorist, since Arizona has a significant number of under- or uninsured motorists.

When providing you with insurance coverage, your insurance company must provide you with the option to purchase UM and UIM coverage. If you decline UM/UIM insurance, or opt to reduce the limits of coverage, the insurance company must obtain a written waiver signed by you in order for such waiver to be valid. If you were not provided with this option, or do not know if you have this insurance coverage, please contact Pak & Moring for a complimentary policy review.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)

Arizona Law mandates the purchase of liability insurance to cover bodily injury and property damages that you may cause in an accident. The minimum liability insurance required is 15/30/10.  This means that your liability insurance will cover bodily injury claims up to a maximum of $15,000 per person and a total of $30,000 per accident.  It also covers up to $10,000 worth of property damage that you may have caused. These limits are the most your coverage will pay, regardless of the number of people who are injured and the extent of their claims.

Bodily Injury – This form of liability coverage protects you against claims for medical expenses, lost wages, and pain and suffering that you may have caused (or for which you are legally responsible or liable) to others due to an automobile accident. Your insurance company will cover damages up to the limits of your policy. Bodily injury coverage will not pay for your own medical expenses, lost wages, and pain and suffering from any accident.

Property damage – Liability insurance for property damage covers the expenses you cause when your car damages someone else’s property. Usually it is the other person’s car, but it could be a fence, a house or any other property damaged in an accident. It is a good idea to purchase enough insurance to cover the amount of damage you might cause to another vehicle or object.

If you cause a car accident in Arizona and do not have enough insurance coverage, a court may order you to compensate the people you hurt in the accident out of your own pocket. To determine how much bodily injury coverage you should buy, you ought to first determine how much coverage you can afford and then weigh how much of your assets you would be willing to lose or how much of your income you are willing to have garnished if you happen to cause a serious accident. If you opt to purchase the state mandatory minimum bodily injury liability limits, which are $15,000 for the injury to a single person and $30,000 in total for all injuries sustained in a single accident, it is likely that you will not be adequately covered in the case of a serious accident. We encourage all drivers to obtain appropriate limits, which will depend on your individual circumstances. Knowing you have adequate coverage can give you peace of mind if you are involved in a serious accident.

If are concerned or unsure about the level of your car insurance coverage,  contact Pak & Moring for a consultation to make sure that your auto insurance coverage is appropriate for your family’s needs.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)

If you are an Arizona driver and cause an automobile accident, you will likely be responsible for damages to the other people involved. A claim may be made or a lawsuit filed against you for these losses.If you have insurance, you will have protection up to the limits of your policy. However, if you do not have the appropriate coverage or adequate limits, you may have to pay for the property damage you caused and for any applicable medical expenses, lost wages, and the pain and suffering of any injured person. Of course, if you do not have any insurance, your money, property and other assets may be subject to collection to pay for these losses. Buying the right kind of insurance with adequate limits will help protect you so that this does not happen. Liability insurance will generally cover the damages you may have caused in an accident situation. It will also pay for a lawyer to defend you against any claim or lawsuit that may result from an accident. But what about you, your injuries and the damages to your vehicle? Do you have the right kind of insurance to protect you? And is it enough to cover your losses? There are various available to protect and pay for your injuries or damages to your automobile. These optional coverages will help pay for your losses, whether or not you caused the loss. If you don’t know whether your insurance coverage is adequate for your family’s needs, contact Pak & Moring for a consultation and evaluation of your automobile insurance policy.

When you get into a car accident and do not have health insurance, an effective way to seek treatment and pay no up-front costs is to go to a chiropractor or physical therapist who agrees to take a lien on your treatment in exchange for payment at a later date. This is beneficial to you, as it provides you an opportunity to get better without having to pay out-of-pocket for medical bills when you do not have health insurance.However, the lien itself means that you will have to repay the medical service provider (be it a chiropractor or physical therapist) upon receiving a settlement from your own car insurance with Med Pay and/or the at-fault driver’s car insurance. Each medical care provider is different, and in managing communication between your doctors, car insurance, and the car insurance of the person liable for the accident, it is helpful to have an experienced attorney. If you are interested in a free consultation about your personal injury case, contact Pak & Moring to see if we can help you during this lengthy and arduous process.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)

If you are hurt in a automobile accident, need medical attention, and are paying for all of your medical expenses out-of-pocket, then the claims process is rather straightforward. The first step is always to seek treatment and recover from your injuries. Due to the fact that you will be paying for all of your expenses without help of any insurance, you will not need to reimburse other parties if or when you receive Med Pay coverage from your own auto insurance of from the at-fault driver’s auto insurance. There are no liens placed on your medical treatment and you will only need to communicate with your own car insurance and the defendant’s insurance in terms of your claim. Each accident and situation is still different, and an attorney could be the most valuable resource in helping you through the personal injury process. Contact Pak & Moring for a free consultation to discuss your accident, and see if we can help you manage your insurance claims.

(Please note: while informative, these posts are not intended to be formal legal advice and should not be solely relied on as a primary basis for legal action.)