Month: August 2016

Deed in Lieu of Foreclosure

texas foreclosure alternatives deed in lieu of foreclosureSometimes a borrower who pledges collateral for a mortgage loan cannot meet the loan repayment obligation. Unless the parties reach another agreement, the lender will often foreclose on the collateral in an effort to satisfy the loan and may sometimes pursue additional legal action against the debtor for any deficiency that remains after the foreclosure sale.

One agreement to avoid a foreclosure is a short sale.

Acceptance of a deed in lieu of foreclosure is another alternative to legal foreclosure. Under this scenario, a lender accepts the deed to the collateral securing the loan (the mortgaged property) in full satisfaction of the underlying debt.

A deed in lieu of foreclosure arrangement theoretically allows both lender and borrower to avoid additional expenses, public exposure, and other intentional and unintentional consequences of foreclosure proceedings.

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.

Integrated Project Delivery System in Three Sentences

According to The American Institute of Architects, integrated project delivery is:

  • a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction.
  • distinguished by a contractual arrangement among a minimum of owner, constructor and design professional that aligns business interests of all parties.
  • characterized by key participants being bound together as equals, shared financial risk and reward based on project outcome, liability waivers between key participants, fiscal transparency between key participants, early involvement of key participants, jointly developed project target criteria, and collaborative decision-making.

texas construction integrated project delivery system

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.

Overview of Construction Contract Pricing Methods

texas construction contract pricing method mechanismIn conjunction with selecting the project delivery system, the owner of a construction project must consider the mechanism used to determine the contract price and the contractor’s compensation. Generally speaking, there are four construction contract pricing methods.

First, under a fixed-price or stipulated-sum contract, the contractor agrees to perform a specific scope of work for a predetermined, fixed sum.

Second, under a cost-plus contract, the owner pays the contractor for the cost of the work plus an additional sum (often represented as a percentage of the project’s cost) for the contractor’s overhead and profit.

Third, under a cost-plus with guaranteed maximum price agreement, the owner agrees to pay cost-plus up to an agreed-upon maximum sum, beyond which the contractor bears the financial burden.

Fourth and finally, under a unit-pricing contract, the owner pays the contractor a fixed amount for certain units of material/labor used on the project, rather than paying a fixed total for all material/labor used on the project.

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.

Short Sales in Three Sentences

Mortgaged property may be the subject of foreclosure if the borrower defaults. A lender may agree to a short sale in lieu of foreclosure in some circumstances. A short sale entails selling the property for a price less than the amount of the remaining mortgage debt, applying the sale proceeds to lower the remaining mortgage debt, canceling what then remains of the mortgage debt, and releasing the mortgage.texas foreclosure mortgage short sale real estate

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.