Feb 12, 2024 | Buying Real Estate, Mortgage Lenders, Realtors, Selling Real Estate
The definition of loan fraud is simple. According to the F.B.I. loan fraud is any material misstatement, misrepresentation or omission relied upon by a mortgage underwriter or lender to fund a loan.
The definition does not make any exception for white lies, half truths, fibs or creative facts. It says any material misstatement, misrepresentation or omission. In most cases if you are involved in a real estate loan transaction, as a borrower, real estate agent, attorney or some other party, and you have to ask yourself or someone else “Is that loan fraud?” 95% of the time the answer is “yes.”
In most cases when I am asked about whether or not something is loan fraud the conversation usually goes something like this: (more…)
Nov 21, 2023 | Buying Real Estate, Realtors, Selling Real Estate
Realtors® are licensed and are trained to understand all aspects of real estate sale and purchase transactions as part of that licensing. From rules and regulations to financing options a good Realtor can guide their client through the complicated process of buying or selling real estate. Realtors® are required to continue their training annually to receive training credits to renew their licenses.
Realtors® have access to resources not available to the average home buyer or seller. (more…)
Oct 13, 2023 | Buying Real Estate, Interesting Stuff, Mortgage Lenders, News, Realtors, Selling Real Estate
With all of the recent talk of improper foreclosures having taken place, and the issues with bank owned real estate title problems, the question of the need for title insurance has been a hot topic. I have always stressed the importance of purchasing an owner’s policy of title insurance. Regardless of who is selling the property, how long it has been in the family or how familiar you or the seller may be with the property you just never know (more…)
Aug 9, 2023 | Buying Real Estate, Mortgage Lenders, News, Selling Real Estate, Short Sales
Title insurance underwriters, concerned about the risk in insuring short sale flips have taken a position of not insuring them. Old Republic Title Insurance announced to it’s agents last month that it would no t authorize the issuance of lender or owner title insurance policies on short sale flip transactions.
So what is a short sale flip?
A short sale flip is when a property is purchased by a real estate “investor” from a seller who has negotiated with the current mortgage holder(s) to release the mortgage(s) for less than what is owed, the purchaser of the property then flips, or resells, the property for a profit. (more…)
Jan 23, 2018 | Buying Real Estate, Real Estate Tips, Selling Real Estate
I have had a lot of questions recently regarding the topic of marketable vs. insurable title. They are both terms of art, in that they are unique terms to the legal and title industry. They are not easily defined with comparable examples.
When a title is marketable it means that the chain of ownership (title) to a particular piece of property is clear and free from defects. And as such, it can be marketed for sale without additional effort by the seller or potential buyer.
In contrast an insurable title does, or may have a known defect or defects in the chain of title. However, with an insurable title, a title insurance company has agreed in advance to provide insurance against the defects ever affecting the ownership or value of the property.
If a property does not have a current, valid title insurance policy and there is a defect in the chain of title, then the defect must be cured or repaired before a seller can convey marketable title. If there is a current policy, rather than curing or fixing the defect, which can be very expensive and time consuming, the title insurance company may elect to insure against any problem the defect may cause in the future. That is, the insurance company agrees to fix the problem only when – and IF – it ever becomes an immediate problem. Some defects in title may never become a problem or threaten the value or ownership of the property. Title insurance companies, like any insurance companies are in the business of risk management, and whenever possible would rather defer the risk then to pay to address/correct it.
One of the biggest problems with insurable title is that a buyer of a property accepting insurable title (rather than marketable title) is taking a risk of their own. It’s not that the defects may ever threaten the value or ownership of the property, but that upon resale of the property the next buyer may not be as willing to accept the insurable title and may demand a marketable title.
Be sure that you know the type of title the seller intends to convey before you sign a purchase contract.
Jun 20, 2017 | Home Buyer Tips, Home Buying Tips, Selling Real Estate, Selling Your Home
Thinking about buying or selling a home on your own? Consider all of the steps you’ll personally have to complete on your own. It is overwhelming. Don’t go it alone. Let us introduce you to one of our many highly qualified and experienced Realtor partners. Call David today: 978-728-5104.
