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Creative Marketing

While driving through the Baltimore/ Washington D.C. area, there was a billboard that said, “Don’t get a divorce…get a bigger house.” Four days later, the advertisement is stuck in my head.

Although we are all for buying the house of your dreams, it will not save your marriage. What really happens to your house in a divorce?

1. The marital home is the most sought asset during a divorce. At the beginning of the divorce process, everyone wants to keep the marital home; however, it is rare that that both parties can afford to keep the home on their one income, often determining who could actually keep the house;
2. One spouse keeps the house. If one of the parties can afford to keep the home, they should refinance under their own name and based on their individual income. At the time of refinance, the ownership is often transferred by Quitclaim Deed;
3..Get your name off the mortgage if you don’t own the house. If you have signed a Quitclaim Deed to relinquish ownership rights, make sure that you don’t have any financial responsibility for the mortgage or taxes. We recommend this for both security (in case your ex doesn’t pay the mortgage for any reason) and because any financial obligations will limit your ability to secure your own credit for a future rental or purchase;
4. Sell the house. This can be done either before or after the divorce occurs, but it’s easier if the parties agree how the proceeds will be divided before the house is put on the market;
5. It gets more complicated when the mortgage exceeds the value of the home. Couples that cannot afford to pay the overage due usually have to choose a short sale, renting the home or continuing to live together;
5. Buying a house during the divorce process isn’t always a great idea. The home will be considered a marital asset and subject to division. Also, mortgage underwriters may be a bit concerned about your future income and assets, which could cause delays.

As always, please let us know if we can assist you with any concerns or legal matters.

Warm Regards,
John & Faye

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Said Nobody Ever.

“Title insurance is the most exciting topic EVER!”

– Said nobody in the history of the world

It IS really important though. If you’re thinking of buying (or if you have clients who are), check out this information from Old Republic Title:

 

 

http://www.oldrepublictitle.com/blog/what-every-realtor-should-know-about-owners-title-insurance.asp

 

As always, please let us know if you have any questions about this or any other matter.

Regards,

John & Faye

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Will You Accept This Deposit?

 

What is Earnest Money? Buyers typically give a deposit when they make an offer on a house. The money is provided to demonstrate that you are “earnest” or serious about buying their home. The amount of earnest money given usually depends on local custom, but a serious buyer might opt to give more to show commitment.

In most cases, the earnest money goes towards the eventual purchase of the house; however, there are two primary scenarios where you Buyers might have earnest money returned:
1. Rejected offer. If you make an offer to buy a house and the seller turns it down, they are required to give you the earnest money back; OR
2.  Contingencies. When you make an offer to buy a house, the offer is usually contingent upon certain things, like a home inspection. If the inspection uncovers a serious flaw which is unacceptable, can’t be fixed, or the seller is unwilling to fix, you will also get your money returned.

To the contrary, if you back out of the Offer or Purchase and Sales for no good reason (ex. you decide you just don’t like the house or location), you might forfeit your earnest money. Like so many things in the law, we look at the return of earnest money on a case by case basis to determine what is right or just.

As always, please feel free to contact us with questions that you may have about this or any other legal issues.

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Gratitude

“It’s so free this kind of feeling;
It’s like life, it’s so appealing;
When you’ve got so much to say;
It’s called Gratitude and that’s right.”

-Beastie Boys

We have so much to be thankful for this year: our families, clients, vendors, and colleagues. We very much appreciate your business, referrals, and friendship. Happy Thanksgiving!

Warmly,
Faye & John

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Falling into a new house

Doesn’t it seem like everyone moves during the spring and summer? Yes, more homes tend to sell during those seasons; however, there is no wrong time to buy and, in fact, fall and winter are excellent times to consider falling into a new home!

* You can celebrate the winter holidays in your new home;
* There is still more than enough selection of homes available;
* Sellers are more motivated to sell, especially if their house has been on the market for a while (which isn’t usually because there is something “wrong” with the house);
* You can take advantage of homeowner tax breaks for property tax and mortgage interest;
* There won’t be as much competition, so you aren’t as likely to get into a bidding war or to overpay for your new home;
* Moving companies tend to charge less in fall and winter, because they aren’t as busy;
* Your realtor will likely be less busy and can dedicate even more time to personalized service; and
* You will see your property at its worst, which is a hidden gem of information. It’s easy to make the house look pretty in the spring as flowers bloom, but wouldn’t you rather know that the heating systems, roof, and gutters are performing as they should?

As always, please feel free to reach out to us with any questions or concerns by email at faye@wjslegal.com or (508)319-1529.