Title Insurance on a Property

Title Insurance on a Property

Title Insurance on a Property

 By Sandy Flores

Why is there a need for Title Insurance on a property?

Title insurance is protection for the buyer of a home. The purchase of a home is one of the most important achievements that an individual will ever complete and one of the largest investments that should be protected to avoid losses. You and your lender will want to be sure that the property has no defects in the title that might jeopardize the interests of the property that you are getting. For this reason, title insurance is not only necessary and important, but it is also covered in a unique way by the law.

Title InsuranceWhen you purchase a real estate ‘good’ you get the title to the property rather than the land itself. There is the possibility that your title of property may be limited by legal rights and claims made by others of which you have no knowledge. Each year the titles insurance companies spend a high percentage of revenue collecting, keeping, maintaining, and analyzing the official archives for information affecting the title to a property.

Experts from these companies have the necessary training to identify the rights that others may also have property, registered liens, legal actions, interests in litigation and other different problems.

Before closing a transaction, the title company will proceed to “clarify” those problems and if there are, remove them before you transfer the title of property. Bear in mind that title problems may limit their use of real estate and have negative financial consequences.

The title insurance process begins with a search for records that are specific to the property you are buying. The results of this search can disclose problems that are in the history of the property and that must be corrected before issuing a new title insurance. Among some of these problems that may arise are: mortgages, judgments and outstanding tax liens, writings, inheritances and trusts that contain interest and incorrect names, as well as incorrect notary acknowledgements, etc.

It is necessary to clarify that, despite all the experience and dedication with which perform searches and investigations, may emerge hidden defects after closing the purchase of a real estate property, resulting in a costly and unpleasant surprise. We can be considered as examples of heirs not disclosed previously, with claims on the property, counterfeit scriptures that do not transfer title to the real property, instruments executed under a power of Attorney expired or counterfeit, errors in public records, etc.
Title insurance offers financial protection against these and other hidden defects of title through the negotiation between title and third-party insurer, the payment by the defense against a dispute to the title in accordance with the insurance and payment of claims.

The rates of the title companies are archived at the California Department of insurance and each company has the obligation to put it on the list exhibited to the public. As in any business competition, prices vary according to the company; therefore before deciding which company will use compare among them. An agent in real estate can assist you in making this decision.

Title InsuranceThe owner and the lender or mortgagee protection coverage is normally issued based on the value of real estate purchase. Most lenders require a title insurance for mortgage by way of guarantee creditors for your real estate investment, as also required by the fire insurance or other types of coverage for your protection and that of the investor.

Title insurance provides protection to home buyers against numerous claims of titles and possible losses. Title insurance policies provide thus unique and important protection for mortgage creditors of property who want to make safe investments both buyers.

Make sure you are fully protected when purchasing a property. As always, it is recommended to consider the advice of a specialist, to determine the policy that suits you, as well as answers to your questions about the coverage of them.

Stay Educated!

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The Need for Title Insurance When Buying Property

The Need for Title Insurance When Buying Property

The Need for Title Insurance When Buying Property

By Sandy Flores

Special to Excelsior

Buying your first home is one of the most important and delicate tasks that we have to decide and perform. Once you have taken this important decision, it is necessary to take certain precautions.

 Title InsuranceOne observation we have to consider is the ‘Property Title Insurance’. Now maybe you’re wondering why a ‘Safe Property Title’ is required? Well, buying a home is certainly one of the most momentous achievements that an individual may experience, and it is vital for you and your lender to be sure that the property is not bearing defected title that could jeopardize the interests of the property. For this reason, the title insurance is not only necessary and important, but is also protected by law.

While buying  property, you get the title of the property rather than the land itself, but there is a risk and the possibility that his title may be limited by legal rights and claims made by others, the which you have no knowledge.

Each year title insurance companies spend a high percentage of their income by collecting, storing, maintaining and analyzing official records for information that affects title to a property. Their experts are trained to identify the rights that others may have on your property, such as recorded liens, legal actions, litigation and other interests in different problems.

Before closing a transaction, the title company will proceed to “clear” those issues that do not apply to your property. Be aware that the title problems may limit their use and enjoyment of real estate and have negative financial consequences.

Defects in the title could threaten the security interest that your mortgage lender has in the property. The title insurance process begins with a search of title records that are specific to the property you are buying. The results of this search can publicize problems encountered in the history of the property title, which must be corrected before issuing a new title. Some of these problems that might arise are: mortgages, outstanding judgments and tax liens, deeds, wills and trusts that contain interest and incorrect names, incorrect notary acknowledgments, bondage, etc..Title Insurance

It is necessary to clarify that despite all the experience and dedication with which insurance companies conduct searches and investigations, hidden defects can arise after closing the purchase of real property, causing a costly and unpleasant surprise.

We can consider as examples of previously undisclosed heirs with claims on the property, forged deed does not transfer title to real estate, instruments executed under a power of attorney expired or counterfeit, errors in public records, etc..

Title insurance offers financial protection against these and other hidden defects in the title through negotiation between the title insurer and third, payment for protection against damage to property title insurance settlement and payment of claims.

The rates for title companies are archived at the California Department of Insurance, and each company is required to put them on public display in the list. As in all matters of competition, prices vary by company, so before deciding which company to use, compare between them. The two basic types of title insurance is right.

 Own Coverage and protection for the lender or mortgagee

 Normally the owners title insurance is issued based on the value of the real estate purchase and can last forever, even after the insured sells the property, but this depends on the type of policy you have the owner.

By contrast, the amount needed for the title insurance decreases as the mortgagee be paying the loan until it finally disappears. Most lenders require title insurance to mortgage lenders by way of guarantee for their investment in real estate, as require fire insurance and other types of coverage as investor protection.

Title insurance provides protection for home buyer’s against numerous claims of securities and possible losses.

The title insurance policies provide for, so unique and important protection for both buyers and mortgagees of properties who wish to make safe investments.

As always, it is advisable to seek advice from a professional in Real Estate to determine and make a more informed decision and advantageous for you.

Choose The Correct Property Insurance

Choose The Correct Property Insurance

Choose The Correct Property Insurance

By Sandy Flores

Special to Excelsior

Do you know if your insurance would cover all expenses in an emergency? Learn and know how to pick a good property insurance

A variety of insurance for homeowners, ranging from fire insurance to flood, earthquake and personal property, among many others.  It’s definitely important to determine the type or types of insurance you need, depending on the area where your property is located. Many banks when granting a loan financing, will require certain types of insurance you will need to hire before granting the loan.

The main difference is in the actual cash value and the cost of replacement . Speaking of the policy replacement cost, is the options that you have to completely rebuild their property and they are unquestionably best. There are many types of replacement policies, so you have to analyze what is the most you should have. Find out what features in the replacement cost policy that best meet their needs. This is the most surely pay property reconstruction.

Other types of replacement cost policies will pay for these expenses, but with certain limitations, including certain percentages of those limits. Do not forget about the coverage of the improvements that are needed according to current codes. Cities and counties in different areas periodically change their building codes. If you do not have this coverage, and has the need to change the structure of your home to meet current codes required, can your insurance company will not pay for these changes, and you are forced to cover these unforeseen expenses your own bag.

His agent, broker or insurer can help you find the best and most desirable range in a property policy to rebuild your home. You need to update that limit periodically to maintain a limit to reflect current construction costs. It’s a good idea to ask your agent, broker or insurer to investigate and adjust your insurance policy as necessary on a regular basis, or if they offer automatic protection option on how will inflation, so as to increase the limits current information of inflation.

Read your policy carefully. If you are confused with some terms or explanation of benefits is important to contact your agent, broker or company and ask them to assist in clarifying the details of any particular policy. Do not wait until after experiencing a loss, to learn that you did not need to cover all these expenses coverage.  When you have the need to make comparisons on insurance policies not only remember to compare the prices of insurance policies, but also the coverage they offer likewise considering the deductible you have to pay. Otherwise you might end up not covering the total amount reflected in the costs you may need.

Remember that your home is one of the most important purchases you will make. Take the time to compare, read and understand the terms and clauses in insurance policies before you buy them, if you need more than one policy (fire, flood, earthquake, personal property, etc..). It is one of the best decisions you will not only protect you and your family, but also investment property.

Keep in mind that it is vital to learn, investigate and consult before making any transaction or business, to avoid falling into a situation that can not only benefit you, but even worse it could harm.

The Benefits of Short Sale Homes and Tax Relief for Homeowner’s

The Benefits of Short Sale Homes and Tax Relief for Homeowner’s

The Benefits of Short Sale Homes and Tax Relief for Homeowner’s

By Sandy Flores

Special to Excelsior

 The Short Sale or Short Sales are an option that allows you to avoid foreclosure if you can not hold your property or has been denied a modification. By applying for and negotiating a short sale, your lender will allow you to sell your property at current market value, even if it sells below the amount you owe on your balance. Under the terms of a short sale, your lender may forgive your mortgage debt in full under the terms described in the Law on Mortgage Debt Help 2007.

The Tax Relief in Federal Tax, known in English as “Mortgage Forgiveness Debt Relief Act of 2007, is focused on helping homeowners whose mortgage debt is partly or entirely forgiven, because of a special tax relief provision. These owners may be eligible to exclude the forgiven amount of your taxable income.

Those owners whose mortgage debt was forgiven, have the option of claiming the special tax relief by filling out Form 982, Reduction of Attributes of Tax Due to Exclusion of debt (Section 1082 Adjusted Basis), or in English “Reduction of Tax Attributes Due to Discharge of Indebtedness”, linking to your federal tax return income.

To be eligible for the Mortgage Debt and Private branding is being applied, it must be the taxpayer’s principal residence owner. A Debt used to refinance qualifying debt may also be eligible for this exclusion, but only the amount of the main mortgage refinancing earlier.  Borrowers whose debt is reduced or eliminated receive from your lender a final report of the year (Form 1099-C). The lender is required to provide the borrower to January 31 this form. By law, this form must show the amount of debt forgiven and the current market value of any property surrendered through foreclosure.

It is important that borrowers carefully check the Form 1099-C. Notify the lender immediately if any information shown on this form is incorrect or misleading.  Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for your home (Box 7). Borrowers who your property is foreclosed or repossessed by the lender may receive a Form 1099-A. For more information, see Publication 523 of the Internal Revenue Service (IRS).

The Relief Act Cancellation of Mortgage Debt was issued on December 20, 2007. This Act allows you to exclude certain canceled debt on your income, because normally the debt is forgiven or canceled by a lender must be included as “income” on your tax return.  The Relief Act Mortgage Forgiveness Debt Cancellation of 2007, applies to debt cancellation, 2007, 2008, or 2009. However, Law Emergency Economic Stabilization of 2008 extends the deal through 2012.

 Remember that there Voluntary Taxpayer Assistance

To find free tax help near you, call the Department of Revenue at 1 (800) 829-1040, or to obtain a free copy of any form or publication, you can also contact the Department of Revenue at 1 ( 800) 829-3676.

Among the Forms and Publications that can be of assistance and guidance, we can mention the following:

Form 982, Reduction of Tax Attributes Due to Debt Waiver (and Section 1082 Adjusted Basis).

Form 1099-A, Acquisition or Abandonment of Secured Property.

Form 1099-C, Cancellation of Debt.

Publication 533, Selling Your Home.

Publication 525, Taxable Income and Tax Exempt.

Publication 544, Sales and Other Disposition of Assets.

Publication 551, Basis of Assets.

Publication 908, Tax Guide to Bankruptcy.

Publication 4681, Cancelled Debt, Foreclosure, Abandoned and Repossessions.

All this information has been obtained through files, forms and publications available to taxpayers at no cost from the IRS, Department of Revenue, for reference only. If you have or need specific answers to your questions, get advice and seek the help of a CPA or Tax Professional in Tax.

As always, we recommend that you gather as much information as possible before making a final decision. Get all the necessary guidance and advice from an experienced professional to help you about all the options available, and decide which options would best suit you in particular.

 For more information you can also visit the website:

www.ayudaparapropietariosdecasas.com

 

Loan Modification’s and New Financial Reform

Loan Modification’s and New Financial Reform

Loan Modification’s and New Financial Reform  

By Sandy Flores

Instructor in real estate in the Santa Ana College

The recently approved new Financial Reform Act Help for homeowners who are facing foreclosure further broadens the participation of banks and helps homeowners retain their properties.

Homeowners who have difficulty making their payments and are experiencing financial difficulties are eligible for HAMP, Capacity and Stability Program to Pay Homeowners programs – Making Home Affordable. These programs offer loan modification help you need if the homeowner qualifies for payments more affordable.

Initially incorporated HAMP programs applying for refinancing those loans where Fannie Mae and Freddie Mac owned or loans that were insured by these companies. We know that Fannie Mae and Freddie Mac have roughly about 58 percent of mortgage loans between themselves and insured. That is roughly 31 million loans, of which 20 percent are experiencing failure in repayment capacity.

The new (Unemployment Mortgage Assistance) UMA program, which provides assistance to homeowners who are unemployed is also one of the most anticipated programs for those who are currently facing foreclosure. This program will allow financial assistance to make their mortgage payments while they find work.

Other important points that were incorporated in the new law of economic reform were:

The creation of an exclusive agency for consumer protection to verify that financial institutions strictly comply with regulations on home loans and other financial products.

More relief funds to assist the stabilization of communities and borrowers whose property was foreclosed.

The HAFA Program to facilitate a short sale or deeds in lieu of foreclosure for borrowers who do not meet the requirements for a loan modification.

The government will provide funds to encourage financial institutions to help subsidize borrower relocation expenses.

More government funds to provide more information and advice to consumers.

New standards in qualifying borrowers to ensure they comply with the minimum requirements on the ability to repay their loans.

High fees for mortgage loans granted are prohibited.

Protection on prepayment penalties on mortgage loans and abusive lending rates.

Improved data information. HMDA (Home Mortgage Disclosure Data) including the terms and conditions of the loan and the borrower’s age.

Creating a database that allows reporting to banks in the event that defaults on mortgage payments begin to increase, to avoid a massive foreclosure activity.

Creating a database of records HAMP. Increasing the responsibility and commitment of financial institutions for owners who need help and are facing foreclosure.

No more bailout money to the banks of the tax payers.

Even if your property is scheduled for a foreclosure, you have options. Learn and take advice on all options available and at your disposal on assistance programs for homeowners. Many of these programs have expiration dates, so the time factor is the most basic and crucial to achieve this. Avoid being a victim of mortgage fraud!

Interest Rates on Mortgage Loans

Interest Rates on Mortgage Loans

Interest Rates on Mortgage Loans

By Sandy Flores

Special to Excelsior

Financial institutions provide considerable information and guidance on loans and interest on mortgage loans, but it is you who makes the final decision for the best possible loan. It is important that you take responsibility for include comparing interest rates with other sources of information available, and affordable. Mortgage interest rates are constantly changing, depending on various national and international economic factors.

The current national interest rate is generally published in different media, such as the financial section of newspapers, internet pages, etc.. This information not only helps you know the current interest but also to analyze how these interests have behaved levels for a certain period of time.

Keep in mind that according to the interest rate that you get on a home loan, your monthly payment. Remember, this is the payment that corresponds to the loan and does not include any other quantity, such as the property tax, homeowner’s insurance, loan insurance (PMI) if you come with less than 20 percent down, the offices of the association where it is a condominium, among others.

It is important not to confuse the Effective Interest Rate Basic (Interest Rate), it is not the same as the Annual Interest Rate (APR), which is calculated according to the cost of your loan, not just the total amount of the amount financed, as it is in the Cash Interest. Ask if the interest rate is fixed or adjustable. Note that variable interest rates may increase and thus also their allowance.

However, the total cost of a mortgage includes more than just the basic rate of interest or effective. These costs are the charges for home, discount points, miscellaneous expenses and other terms and conditions that could affect the final cost of your mortgage.

When comparing different mortgages, make an effort to make sure and consider all factors that may have influence on the final costs. In most loans, lenders offer mortgages with several combinations of points and interest rates. Generally, the lower the interest rate, more points could pay before closing. Interest rates affect your monthly mortgage payment, while points affect the amount of cash that must be at closing.

Most financial institutions and listed fixed interest rate and fees when you apply for a loan, and then agree to keep fixing the interest for a certain period. While this rate protects not pay more for your mortgage, if interest rates rise before you close your loan, it also means you will pay the same rate offered to you with the commitment even if interest rates decrease.

Periods of engagement or attachment generally run from 10 to 60 days. It is best that the given period is long enough to last him until the end of your loan, and not incur additional costs if there is a need to request an extension.

Other lenders may give you the option to wait and allow your interest rate “flickering” during the process, so that the rate can change between the time you apply for the loan even before the time of loan closing.

By accepting this fluctuation you can benefit from lower interest rates, if they decline even before the loan closing. However, before choosing a fluctuation sure to have resources to pay a higher monthly payment if interest rates rise.

Make sure you understand all terms of the mortgage you choose, so you do not get surprises along the way. It is therefore important to choose a lender with whom you feel comfortable, and you get your questions in a good way.

Mortgages are complex financial transactions, and lenders are committed to explain the pros and cons to homebuyers about the various programs and interest rates they offer.

Consult a real estate professional so that you can have more advice and guidance, based on funding programs that are available to homebuyers.

 

An Increase in Total Number of Sales for 2013

An Increase in Total Number of Sales for 2013

Quick Blog

 An increase in the number of total home sales in 2013 reflecting that revealed so much stronger year in home sales.

The total number of existing home sales completed processes with increased 1 percent month compared with a rate of 4.87 in the past month.  

 The National Association of Realtors estimates the number of homes for sale at 5.09 million, a 9.1% improvement from 2012. The Early buyers accounted for 27% of purchases in January, and sales by 32%.  

 Steve Brown, president of NAR likewise commented that sales will remain strong in 2014 with numbers that are appreciating in improvement. 

 Undoubtedly, a great time to buy your house.