Homeownership

When a borrower falls behind on mortgage payments due to financial hardship, the homeowner may have the option to modify the loan, get a “Partial Claim” mortgage, or both. (In Georgia, the Security Deed is used to encumber the real property and is commonly referred to as a Mortgage, even though they are different legal instruments).

Federal loan programs (FHA loans), offer an option where HUD pays the lender the amount past due. HUD then places a second mortgage on the property for that amount paid with HUD as the lender. This second mortgage will be recorded in the real estate records. This will lower the monthly payment and the principal balance of the first mortgage, providing some financial relief. The amount placed in the Partial Claim mortgage requires no monthly payment and does not accrue any interest. But it is neither a gift nor a grant. The Partial claim mortgage was funded by HUD and the loan must be paid in full when the property is sold, refinanced, or when the first mortgage is paid in full.

Homeowners often forget about the Partial-Claim mortgage because there are no monthly payments, and they do not receive a monthly statement. The first lender may insist there is only one payoff, but they cannot release the Partial Claim security deed because the lender on the Partial Claim is HUD. It will show up in a title search as a “Partial Claim Security Deed”, and it could have been filed many years ago. The homeowner benefitted from the second loan with the lower monthly payments and the loan is interest-free.

In the end, the Partial Claim mortgages must be paid in full when the property is sold, refinanced or when the first mortgage is paid in full. The Partial Claim mortgage will have a separate payoff from the first mortgage and must be provided by HUD. The payoff usually takes about 7-10 days to get from HUD.

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

As you prepare to sell your home, it is an incredibly busy, overwhelming and sometimes emotional time. Having a professional who is well versed in current housing trends in your corner can greatly reduce the amount of time and energy. A real estate agent who is knowledgeable, competent and speedy can be the best investment in ensuring that you can sell at top dollar for the current market 

1. Efficiency – You can absolutely list your own home and field offers while packing up your memories and looking for your own dream home. What is the next best thing? Delegating some of that work to an expert and focusing on what you can do best. Two heads are better than one.
2. Expertise – Your agent is constantly required to get education about the real estate industry and all the things involved. They dedicate time to expanding their knowledge of trends, getting to know mortgage lenders and attorney’s offices. You get to benefit from the friendships and relationships they have built to serve you.
3. Negotiations – Right before you go under contract, there are a number of negotiations that take place that could severely impact your bottom line. Your agent knows that and the buyer’s agent also knows that. You could be agreeing to things at the beginning that look very different at the end. You want experience on your side in those negotiations.
4. Pricing – The housing market changes every month as world events, economic factors and opportunities change. Even if you sold or bought last year, it’s a brand new market today and your agent has stayed on top of it. They can properly assess your home and make sure that all your upgrades are included, and that your property is priced correctly for your neighborhood.
5. Protection – The real estate industry can have some sneaky people and agents are trained to read the red flags. Outside of negotiations, they can protect your interest in the property, ensure that the buyers do not overreach and assist the attorney’s office in making sure all your paperwork is in.

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

Another cost of home ownership is insuring the home.  Home insurance is required by lenders.  If you do not have a mortgage, then you are not required to have it (although we still recommend it).    

In order to have actual insurance coverage, the name of the insured must match the name on title to the property. Make sure the names match. This is more of an issue with investors who use limited liability companies or holding companies to own the real estate.  

Homeowner’s insurance does not cover all possible damage to a house. The most common issue not covered is flooding caused by outside water. Most standard home insurance policies do not cover any flooding. If the house is in a flood plain, a lender may require flood insurance in addition to homeowner’s insurance.  

Having the cheapest homeowner policy is not the best option. There are very important coverages that owners often need to request in order to get them added. A policy may not cover earthquake damage or sewer backup damage unless there is a rider to the policy. These extra coverages can usually be added by the insurance company, but you often need to request them. 

Consult with your insurance agent to make sure your coverage is what you expect. It does not hurt to shop around for home insurance policies every couple of years to see if you can get the same coverage for a lower price.  

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

You closed and have been handed the keys to your new home. Home ownership comes with a lot of responsibility and work. Once the deed is recorded in the county records, you can expect an avalanche of junk mail, which often pretends to be from your lender or some official office in the county or state.  

If you did not get a home warranty, then definitely do not ‘renew’ one in the mail.  Junk mailers will send fake checks or anything to get your attention to sign up for their service or pay a fee for a service you do not want.  

Do not pay anyone to get a copy of your deed. You will receive the original recorded deed from your closing attorney a few weeks after closing.  When you receive that deed, make sure your name is spelled correctly.  It is easier to correct any errors right away as opposed to years later.  

If you own the property with another person, make sure the tenancy is what you want. If the deed simply lists the two buyer’s names, then title is held as tenants in common. This tenancy means that if one owner passes away, the person’s heirs would inherit ownership. If the deed states the grantees are ‘joint tenants with right of survivorship, ‘then the surviving owner would own 100% of the property if the other owner passed away. (Georgia does not recognize ‘tenants by the entirety,’ which does exist in other states.)  

Once you receive the deed, file for your homestead exemption if you are living in the house. The exemption is through the county tax assessor and has firm deadlines. Missing the deadline can cost thousands of dollars. The county will cross-reference your address with the DMV, so make sure you update your address on your driver’s license and any car registrations.  

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

It is exciting to move into a new home, but it’s also a lot of work.  Hiring movers is extremely helpful, but there is more involved than simply moving furniture.  

The first step should be to get all the utilities set up or transferred into your name.  The seller will close their accounts for water, gas, and electricity. It is important to make sure those stay on, especially in cold weather.  Coordinate with the seller to transfer accounts if you plan to use the same utility provider. 

Second, change the exterior door locks, because you don’t know who has keys to the house.  A locksmith can often rekey the existing locks with new keys, so you won’t have to install all new hardware.

Check the smoke/carbon monoxide detectors and replace the batteries.  Don’t set yourself up to need to find a smoke detector in the middle of the night in an unfamiliar house if the battery goes out and starts beeping incessantly. Batteries seem to fail at 3am.  Learn where they are as soon as you move in. 

Change your address with all your accounts, especially banks, financial institutions, and government agencies such as Social Security, so your private information doesn’t accidentally end up in the hands of your old home’s new owners. Also, make sure to change your address with your healthcare provider, life insurance, voter registration, the IRS, and your employer.  Be aware that mail forwarding takes an additional two weeks or more to receive.

If you have the luxury of waiting to move into the house, it is a good idea to get it professionally cleaned and painted before moving in. Both cleaning and painting are much easier to do in an empty house, and the results will be more thorough.  

Use that excitement to get to work on moving. It is exhausting to move, but it is also important to take care of everything as quickly as possible.

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.