The Pennsylvania Supreme Court sent shockwaves through the lending world in May 2012 when it issued its opinion in Commerce Bank/Harrisburg  v. Kessler. In the case, the Court held that a bank’s open-end mortgage was subordinate to a mechanics’ lien because part of the mortgage proceeds were used to fund soft costs like taxes and certain fees. The Open-End Mortgage Exception Kessler stands for the basic proposition that  “all means all” in Pennsylvania’s open-end mortgage…

About a week or so ago the stack of letters pictured to the right arrived in the mail like a stack of Christmas Cards.  The letters were from “Corporate Records Services” and stated on the front of the envelope “IMPORTANT ANNUAL MINUTES REQUIREMENT STATEMENT.”  Initially, the letters appeared to be a mass mailing or simple junk mail solicitation. Russell, Krafft & Gruber, LLP received these letters because in the past many clients used our firm’s…

Just when you think interest rates are the lowest they’ve ever been, they drop again. This past year has seen such low rates that people are increasingly considering refinancing their mortgages. Refinancing has many advantages, including lowering monthly payments, the possibility of paying off your mortgage earlier, and the potential to eliminate private mortgage insurance (PMI). Suppose you owe $180,000 on your 30-year mortgage and your interest rate is 6.0%. By refinancing at 3.75%, your…

I often hear people say they need to do “their will” when they refer to estate planning. Of course estate planning involves making a will, and most people see the will as the most important aspect of estate planning.  Choosing to establish a power of attorney, however, may be the most important decision that a person makes when creating their estate plan. The person who is giving the power of attorney is known as the principal.  The…

I must admit that as a lawyer I pay very little attention to most decisions of the United States Supreme Court. Very few decisions seem to have an impact on my life or practice, and generally these cases tend to come down with little fanfare. Today was different, however, as I found myself tracking minute-by-minute the news coming in from the Court. I went to bed  thinking about the case, and it was the first…

Joint accounts are often meant to make the financial lives of the parties involved easier, such as in the case of marriage or in a caretaker situation. But what happens when one party dies? Does the money automatically belong to the remaining party? For example, let’s say that a man dies and leaves $20,000 to his grandson in his will. Prior to the man’s death, he added his son to the account to help him…