Okaza Real Estate

How To Sell A House And Lot

There are times you think you are incompetent doing some things that are not your field or expertise. On this venture you come to prove something to yourself. Selling a property is crucial but if done with proper documentation, legitimacy, good faith and consent of both parties buyer and seller, transaction will complete in due time.

In my own venture, it took around ten months more or less to sell a house and lot of the transfer of property from parents to heirs of a clean title. You can seek the assistance of a broker, a lawyer, or a realty firm, among others, to help you with the processing of papers. Each office takes two, three or a month to stamp approval or release.

In the process of documentation, you need a set of photocopies of applications, receipts, affidavits, claim stubs, and other certificates. Label them in safe folders and keep in a bag so any time an office requires a copy, you have one available. Should a file be lost, certified true copies could be sought from the proper government offices.

Here are three steps from Attorney Glicerio Alarkon Jr. (San Beda College of Law), of whom I sought help for my papers.

“1 Settle the estate tax where the property of the decedent is located at the Bureau of Internal Revenue.

2 Secure a new title under the heirs at the Registry of Deeds or Land Registration Authority.

Before securing a new title under the heirs at the Registry of Deeds, you have to pay the transfer tax at the City Hall.

3 After all these steps, the property is now ready for sale!”

So after the lawyer’s advise, here is how the papers got processed selling a property. To save on brokers fees, I worked on my own selling a house and lot.

Initially, before step one, real property taxes must be paid every year, but if taxes have accrued and the interest charges are onerous, owners can claim and wait for a tax amnesty or pay in installment. Keep real property tax receipts.

In step one, once the estate tax have been paid, the Bureau of Internal Revenue will issue a certificate authorizing registration. From here, you can go step two.

Other documents you may need are publishers affidavit, an extrajudicial settlement of estate, tax account numbers, government identification cards, valid identification cards, and a special power of attorney from the Consulate General of the country where the other heirs reside if the heirs are living abroad. For example, our extrajudicial is from the Consulate General of the Philippines in San Francisco, California, USA. Also, death certificates of parents, and sometimes, birth certificates of heirs from the National Statistics Office have to be prepared. Save some money for notary fees and transportation, among others.

The last step is the Deed of Sale. With this, the seller should pay the capital gains tax. Payment of the property can be made in cash or check. However, verification from the bank is necessary, if payment is in check. You will need a lawyer to help you during this transaction. Also, you will need the bank’s assistance for safety. Should the money be of material amount seek the help of a police officer. Truly, the help of good workers!

How to Use a Reverse Mortgage for Purchase of a Second Home

Reverse mortgages are seen as a way for seniors to tap into their current homes as a source of income. By drawing from the equity they already have, they can pay off bills, make improvements to their current residence, or even take a well-earned vacation. There is one option that most do not even consider: using a reverse mortgage for the purchase of a newer property.

Understanding a Home Equity Conversion Mortgage

In order to see how using a reverse mortgage for purchase of a newer property works, you first must understand the Home Equity Conversion Mortgage (HECM). The HECM is still relatively new, but it provides a way for those who are 62 years or older to borrow against the value of the home. With approval, the borrower gains access to funds without having to make monthly payments. Repayment of the loan does not occur until the borrower either passes away or sells the property.

This loan is not an option for everyone. In fact, the guidelines stipulate a minimum age of 62 years old. The borrower must also either own their home outright or have a large amount of equity built up.

Using Reverse Mortgage for Purchase

For some older Americans, the idea of living closer to family members is ideal, but they do not necessarily want to give up their existing home. If this is the case, they may apply for a reverse mortgage. The borrower must occupy this second home for a set portion of the calendar, and the original residence, which the loan is against, must be the borrower’s primary residence.

When using a reverse mortgage for purchase, there are some limitations. For example, this type of loan only covers 47 to 52 percent of the purchase price. It is the borrower’s responsibility to make up the difference. This money can come from a retirement account, savings, or a gift. The actual amount borrowed depends on the age of the youngest borrower, current interest rate, mortgage insurance premium, and the home’s value at appraisal.

Additionally, only certain types of residences qualify for a reverse mortgage. These include single-family homes and two to four unit homes where the borrower occupies one of the units. For condominiums, the U.S. Department of Housing and Urban Development requires preapproval. In addition, manufactured homes must also have FHA preapproval. The borrower must also obtain a certificate of occupancy for any new construction.

A reverse mortgage is a great way for seniors to get a second home closer to family. As with a traditional HECM, there are no monthly payments due. A single, balloon payment, is due at the sale of the home, when the last borrower moves out or passes away. This payment is a total of the principle plus interest. If the home sells for more than this amount, the borrower, heirs, or the estate retains the remaining equity. Should the home appraise and sell for less than the amount owed, there is a guarantee of no personal liability. Lenders are insured against this type of loss.

What Is the Home Affordable Refinance Program

Because of the crash millions of home owners were now upside down on their home mortgage making them ineligible for a new home loan. To add to the damage many home owners had adjustable mortgage rates (ARMS) loans that were going to reset to a higher interest rate causing a payment to sometimes triple.

Many home owners were now unable to make their monthly mortgage payment or owed much more on their home loans than what their house was worth.

The Home Affordable Refinance Program (HARP) is a relief program for people who continued to make their payments even though their homes where under water. Because their homes were worth less than what they owed they often encountered difficulties with trying to refinance their loans. Typical loan standards would usually not allow a new home refinance unless the house was worth more than the amount of the loan being received.

The HARP program helps to enable a new home loan if the applicant owes more than what their house was worth. A few key guidelines include the loan be owned or guaranteed by Freddie Mac or Fannie May and sold on or before May 31, 2009. The home owner has must current on their payment and have a good payment history for the last 12 months.

This program will end December 31, 2016 so it is very important to speak with a mortgage lender to see if you may qualify for a new home loan before the deadline passes. By learning if you qualify you could be eligible to save thousands of dollars a year with a new home refinance.

It is also wise to compare rates from trusted lenders to find out the right loan program for you. These lenders can answer all of your questions as well as give you the options on all the loans you may qualify so that you can make an educated choice on the new home loan. Usually these lenders can give you a good idea of what loans you would qualify for without any obligations or hidden fees.

Understanding Different Options for Home Equity Conversion Mortgages

Seniors, 65 years or older, who own their home may be able to get the equity out of their residence without selling it. Home Equity Conversion Mortgages, or HECM, allows you to tap into what your home is worth and still be able to live in the residence. There are a couple of different types of reverse loan options. The one you choose will determine how your loan is disbursed.

Line of Credit

This first type of Home Equity Conversion Mortgages is a line of credit. Instead of getting a lump sum single disbursement, many borrowers choose to open a line of credit. This allows them to access funds as they need them. In order to get the money, the borrower has to submit a written request to the company servicing the loan.

One of the best things about this is that the line of credit can grow over time. It doesn’t earn interest. Instead, the line of credit takes into account that the home appreciates in value and that the borrower has grown yet another year older.

Single Disbursement Lump Sum

Not everyone is interested in having to present a written request for funds every time they need to tap into their funds. Others would rather get a single disbursement. The only problem is that if the borrower wants more money later, he or she will need to refinance later.

Of course, the borrower can choose to preserve some of their home equity by taking less than what he or she qualifies. An example of this is the borrower is eligible for $150,000 but only needs $25,000 to fix their roof. He or she could take the smaller amount instead.

Term Monthly Payments

Some choose to gain access to their funds by receiving monthly payments instead of a line of credit or lump sum. One option is the term payments. This allows borrowers to receive monthly payments for a set amount of time. For example, if the borrower is 65 and he or she wants to defer social security until age 72 in order to receive maximum benefits. This person could choose to take term payments on their Home Equity Conversion Mortgage for seven years. Each month he or she will receive the same amount, even if the value of the home diminishes during that time.

Tenure Monthly Payments

While term payments can help borrowers bridge the gap between retirement and the beginning of social security, others choose to receive monthly payments for as long as they live in the house. Again as with the term payments, the borrow will receive the same monthly payments. The payments will only cease when the borrower permanently leaves the home or passes away.

Most Home Equity Conversion Mortgages, no matter what payment option is chosen, don’t require repayment as long as the borrower remains in the house. With the line of credit and term payment options, monthly payments may be required sooner. The loan specialist should explain the terms and conditions prior to closing.

Scroll To Top