Although the definition of an eClosing can vary from state to state and entity to entity, some definitions associated with eClosings are consistent. Watch the video to learn more..
eDocuments – Mortgage related documents that are in digital form and not printed
eSignatures – Personal signatures produced be electronic means and legally recognized as an indivduals signature.
eNotarization – The official notarization or acknowledgement or witnessing of the signing (of eSigning) of documents, where the signor does not appear in person.
eRecording – The process of digitally capturing, indexing and archiving title related documents.
Full eClosing – The execution of electronic mortgage or closing documents that is completed with only eSignatures. The parties involved may or may not appear in person.
In person eClosing – A closing where all or a portion of the documents executed with an eSignature and the parties involved, or at least the signors, appear in person.
Remote Online Notary (RON) Closing – The electronic notarization of documents where the signor and the notary do not appear before each other in person, but over a remote digital connection (the internet). – Not recognized in Massachusetts
Webcam closing – The execution of electronic mortgage or closing documents that is completed with only eSignatures. The parties involved do not appear in person. The entire closing is conducted remotely with eSignatures and RON.
An eClosing is a closing that includes the execution and electronic signature of some key mortgage documents in a secure digital environment, while other key documents may be printed and physically signed (often in the presence of a notary).
The difference between an eMortgage and an eClosing is simply that an eClosing may or may not result in an eMortgage, but eMortgages, which result in an electronic promissory note, are always a product of eClosings. Play the video to learn more.
Regular readers of the Tax Minute know that, under Section 121 of the Internal Revenue Code, you can exclude from taxable income the gain of up to $250,000 for single taxpayers and $500,000 for married taxpayers filing jointly on the sale of the primary residence that you have lived in for 2 out of the last 5 years. However, what many of these listeners don’t know is that there are a whole bunch of exceptions to the 2 out of 5 year rule which will enable you to take this exclusion. The IRS states you can take this exclusion if the primary reason for the sale is the occurrence of unforeseen circumstances. In a recent private letter ruling, the IRS stated that a couple who had 1 child when they purchased a 2 bedroom condo as their primary residence who later had a son prior to meeting the 2 year rule qualified for the reduced maximum exclusion of the gain from the sale of their home as they met the definition of unforeseen circumstances. If you sold your primary residence for a gain and lived their for less than 2 out of 5 years, I suggest you call me on the Tax Line to see if you may have a situation that meets the definition of unforeseen circumstances so that you may be able to avoid tax on the sale of your home.
If you have a question on Section 121 of the Internal Revenue Code – Home Sale Exclusion or any tax matter call Hershman, Fallstrom & Crowley at 508-754-0800
or Email us at pc@hfctax.com.
Packing up and moving to a new city is a grand adventure. A new town means new things to do, new people to meet, and new sights to see. However, settling into a new city is also a little scary. When everything around you is unfamiliar, it can be tough to find your footing. You’re not alone navigating this big change in your life. Countless people have packed up, moved cities, and thrived doing it. These are some of the best tips for making your new city feel like home.
Updating Your Car Insurance
If you’re moving to a new state, you’ll need to switch your car insurance as soon as possible. Every state is different in terms of laws and regulations, so it’s important to research what they are in your state before shopping for insurance. Then, you can start searching for the plans that are available in your zip code, which is an important factor in determining your plan’s rates. From there, you can decide which coverage you really need and how to save the most money by obtaining multiple quotes. Getting your car insurance taken care of early will give you peace of mind as you settle into your new city.
Finding Work
If you moved before lining up a job, you have a challenge ahead of you. On one hand, you need to generate income quickly to gain financial stability in your new home. On the other, accepting the first full-time job that comes along could threaten your ability to find work that matches your interests and qualifications.
Consider entering the gig economy to make ends meet while you look for work in your field. Gig economy jobs have a lot of flexibility, which means you’ll still have time to send out resumes and attend interviews for full-time jobs. Dog sitting is one great option when you’re new to town, because you effectively get paid to meet your neighbors! Even if you’re a stay-at-home parent looking for side work, a side gig dog sitting is a great way to get to know your community.
Don’t Forget Fido
Speaking of dogs, there are steps you should take to help your best four-legged friend adapt to your new city as well. First, be sure to keep your pet’s belongings and set them up in your new space. A familiar bed and favorite toy can go a long way in making Fido less anxious about the move. Then, before you head out to explore nearby dog parks, make sure he’s caught up on his vaccines and that he knows basic commands like sit and stay.
Learning the Lay of the Land
You’re going to get lost a lot during the first weeks in a new place. However, that doesn’t mean you should stay in! Accept the adventure and spend time exploring the streets of your new neighborhood. Go on walks, try local restaurants, coffee shops, bars, and supermarkets to find your favorites, and drop into community events that pique your interest. You’ll not only learn your way around, but you’ll also get a feel for the local flavor.
Settling Into Your Home
If you’re not comfortable in your house, it will be hard to feel comfortable in your community. In addition to logistical tasks like cleaning, organizing bills, and updating your home’s safety features, you’ll want to decorate so your new place feels warm and familiar. However, that doesn’t mean replicating the interior design of your last home. To adapt your décor to the new house, factor in the home’s color scheme, floor plan, and traffic flow.
Before making any design changes to the exterior of your home, follow Trulia’s advice and check with your homeowner association. An HOA can be your friend or foe, and the last thing you want is to start off on the wrong foot.
Making Friends
Finding friends is one of the toughest parts of moving to a new city. When everyone around you has established social networks, it’s hard to break in and form meaningful relationships. However, that doesn’t mean it’s impossible! As Realtor.com points out, the best way to meet new people is by joining groups that align with your interests. Whether that’s a parents’ group, a hobby-focused meetup, a faith community, or a community garden, you’ll meet like-minded people who, in time, could become lifelong friends.
Don’t forget about the kids! Helping your children make friends goes a long way to easing their apprehension about moving. Encourage kids to spend time playing outside so they can meet other neighborhood kids. When you talk to neighbors, ask them if they know of families with children the same age as your own. Enrolling kids in extracurricular activities is another way to help them make fast friends who enjoy the same hobbies.
Finally, be patient with yourself! It takes time for a new city to truly feel like home. You might feel a little out of place for the first few months or even the first year. As long as you’re getting out, meeting people, and engaging with your community, you’re heading in the right direction.
Your house is one of the most important investments you will make. Unfortunately, no house is perfect, and when you’re in the process of making the purchase, a repair issue may crop up. How do you determine what should be done, and whose responsibility it is to take care of it?
Red
Flags for House Hunters
Searching for your next abode is a big deal.
You want a place that’s safe, comfortable, and enjoyable, and most homeowners
don’t want to deal with problems immediately after moving in. With a little
scrutiny, you can often rule out homes early in the process.
For example, when you’re at a showing, take a
hard look for evidence of roof issues. Do you see missing or
damaged shingles? Is the paint in good shape, or is it peeling and blistering?
Are there stains on the interior ceilings? A roof repair might or might not be
a deal-breaker, but unless the home is being sold “as-is,” it’s certainly a bargaining chip.
Along those same lines, there are some other red flags worth noting. Standing water can
cause issues, so look for evidence of rotten wood in the kitchen, bathroom, and
laundry floors. If the appliances come with the home, examine them for signs of
neglect, and be alert to drainage concerns around the foundation, such as
ponding water, severe settling, or mold. Also, weed out homes with issues that
are more than you want to face.
Call in
a Professional
Once you find a home you want to purchase, one
of the wisest choices you can make is to invest in a professional home
inspection. This is typically done when you have begun formal contract
negotiations. Fortune Builders points out that you should check the qualifications of inspectors you’re
considering hiring, and ask to see samples of reports they have produced.
Request references, and check with family members and friends to see who they
used, and whether or not they were satisfied with the work.
To Fix,
or Not to Fix?
Once you select an inspector and the report is
complete, you’ll need to sort through the details to figure out what, if
anything, is a sticking point. There are certain repair requests home buyers shouldn’t
bother to make of sellers, such as cosmetic issues, common wear and tear items,
and renovations you intend to complete anyway. (After all, if you’re planning
on doing the work, you want it done to please you. If you leave it to the
seller, they have no obligation to suit your tastes, only basic standards.) The
requests worth considering include things like termite or pest infestations, drainage concerns, major plumbing or electrical problems, lead paint, mold or radon issues, and structural concerns. Basically, stick with
safety issues and problems which are especially expensive to resolve.
Paying
for Repairs
There are a couple of things to bear in mind
regarding your repair requests. Since the seller won’t be staying in the house,
you could have reason to worry about the repairs being completed the way you
would like. Besides, sellers are often in the midst of a lot of expenses, just
like buyers, so they might not have the cash flow to do a nice job. In this
case, you might want to ask for a seller’s concession. Basically, it gives you a
break on the purchase price and allows the seller to get on with the sale, so
everybody wins.
Another idea is to pay for repairs out of
escrow. As Total Mortgage explains, your mortgage company would reassess the
home based on the projected value once repairs are complete, then set the money
aside in an escrow account for you to use toward repairs.
You want your next home to keep you happy,
safe, and comfortable. When you’re purchasing a house, take a hard look during
the showing, and follow up with a professional home inspection. Afterward,
negotiate repairs to ensure you’re satisfied with the results. With a solid
plan in place, you’ll have your investment well-protected.
By Natalie Jones