Is It The Right Time To Buy A House?

House Buying ProcessSo you made your life-changing decision to buy a house. Now it is the right time to take a step back and decide whether it is reasonable to make this kind of decision right now. Buying a home is a complex process that requires a big amount of time, money and patience.

Here are some questions that are absolutely necessary to be asked before the purchase:

Is My Credit Report Good Enough? 

It is extremely important to check your credit report and score. The first thing lenders want to know is how much of your monthly income goes towards debt payments (debt-to-income ratio). This ratio is expressed in a percentage of your personal debt. Luckily, you have the possibility to check online your credit. According to the law, you’re allowed to receive one free copy of your credit report per year, by clicking here. Do not hesitate to check your report for mistakes, because even the small ones can cause rejection. Continue reading

Everything You Need To Know About Easements

EasementThe property discussion might be very tricky sometimes. Does your neighbor use the roadway that passes your private property? Does a local utility company have the right to access a pipe buried in your yard? One day you may wake up and find out that you have to share a part of your possessions. Here are several things that you should know about easements.

An easement is a legal, non-possessory right to use or/and enter someone’s land for a particular purpose. It means a lesser interest in someone’s property, a legal arrangement by the landowner and a no owner in some way. There exist plenty of varieties of this type of property right (i.e. easement for ingress and egress over someone’s property, ross-access or reciprocal easement and maintenance agreement, conservation easement, construction easement, condominium/town-home declarations, etc.) Continue reading

Why Do You Need an Attorney When Buying or Selling a House?

Buying a houseBuying a house will probably be the most significant and the largest financial purchase you will make in your life. Of course, the house buying or selling process is one of the most complex and stressful things that requires much time, knowledge and a lot of effort, but not only. Also, this process involves the law of real estate, because each state has its own requirements and certainly there are different cases and problems demanding special issues of practice in this field of law. A real estate lawyer is specially trained and has enough experience to deal with these problems.  That is why you should start with a consultation with an experienced real estate attorney, who can help you avoid making any mistakes in buying or selling a house.

Home Buying Statistics

The 2013 National Association of Realtors (NAR) has conducted a Home Buyer Survey and it claims that 16% of purchased homes were new houses. The average price for a house was $210,000. The average price for a new house constituted $259,000, and for a previously owned – $196,000.

According to NAR in 2012 the average household income of buyers was $83,300.

Financial Crimes Enforcement Network (FinCEN) states that 69,000 suspicious activity reports to mortgage loan fraud were received in 2012. Here you will find more information about home buying/selling statistics.

Who are All of the Parties Who Could be Involved in Your Real Estate Closing?

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Main Areas of Homeowner Liability

In many states, property owners owe different duties to people who come onto their property. They have a liability to protect any person from harm or injury that enters their premises. There are three areas under which a homeowner is liable to anyone on the homeowner’s premises:Avoid-Homeowner-Heartbreak-with-Liability-Insurance

  1. invitees
  2. licensees
  3. trespassers

In states that still distinguish among these categories of people, the legal duty owed to each category is different. It is important to ask a lawyer whether these categories and standards of care apply in your state.

Let’s see what each category mean.

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How to Find the Right Lender

piggyback-mortgage-house-familyWe all are daydreaming of a big and beautiful or small and cozy, but our own house. The process of buying a house can be, and in fact it is, very confusing and stressful. State and federal laws, current mortgage rates, tax considerations, your personal preferences and your financial situation – all these only add more headache to you.

One of the most confusing parts of the mortgage process can be figuring out all the different kinds of lenders that deal in home loans.

So, in order to get the best deal, or you have other special circumstances to address, understanding the different types of lenders can be a big plus.

There are direct lenders, retail lenders, mortgage brokers, portfolio lenders, correspondent lenders, wholesale lenders and others.

First, let’s define a lender and what he does. It is someone who lends money to another; it can be individual, public or private group. The money that was borrowed should be repaid with additional interest.

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Eminent Domain – What Does it Mean?

eminent domainEminent domain, broadly understood, is the government’s right to take private property for public use, even without the owner’s consent.

The most common uses of property taken by eminent domain are public facilities, highways and railroads.

As of public use, it means:

  • available to the entire public
  • needs of society (schools, hospitals, highways)

Nowadays, the meaning of public use is beginning to be broadened to public benefit, which means that property may be transferred to a private owner for the purpose of economic development, which in its turn can create new jobs, revitalize a depressed urban area, thereby it can be qualified as a public use.

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Avoid Foreclosure

A home is often a most valuable possession of a family. Buying a house is very BuyingForeclosure_largestressful and when you finally got a  mortgage on the home you want, you never think that you’ll ever loose it. But you never know. Few choose to remain without their houses voluntary. Yet, if you miss your mortgage payments, you may lose your home through foreclosure.

Foreclosure is a process by which a party (bank, mortgage lender, etc.) who has loaned money secured by a mortgage or deed of trust on real property or is the owner of an unpaid judgement forces the sale of the property to recover principle balance due, plus unpaid interest and all costs associated with the foreclosure after the debtor fails to remedy the default on the loan.

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  • Every three months, 250,000 new families enter into foreclosure;
  • One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage;
  • 1 out of every 200 homes will be foreclosed upon

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Real Estate Mortgage Industry. Types Of Real Estate Mortgages

Buying a home is one of the biggest purchases a person or a family makes and it is also a difficult process. Not everyone has enough money on their accounts to buy a house, and this is when real estate mortgages come into play.

mortgageA mortgage is a loan made in exchange to the title of the borrower’s property. If not paid on time, the lender has the right to foreclose on the property and sell it to cover the loan. Mortgage lending is the primary source to finance private ownership of residential property. There are different types of mortgages, so let’s try to define each type of them.

fixedA fixed rate mortgage is one that includes an interest rate that remains the same for the entire life of the loan. Fixed rate mortgages are the most popular and their biggest advantage is that the homeowner is able to budget their expenses. The opposite of this is an adjustable rate mortgage that includes fluctuating interest rate that varies over the life of the loan and it is adjusted according to a set formula.

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Compliments of Mark Anderson of Andertoons

Legal Cartoon

Compliments of Mark Anderson of Andertoons