How To Hold Title Vesting for Mortgage or Buying a Home

Congratulations your offer is accepted and you received the statement of information from

your escrow officer, settlement agent or real estate attorney. The purchase contract just has your first and last name. There are several choices how to hold title of the property. Your mortgage company or the bank if you are getting a loan will have something to say about how you hold title.

Here are several choices explained

I want to hold title as Queen Mary Smith. This probably will not work unless you have legal identification to prove this.

Really now, the first thing to consider is are you married?

Single means you never were married

Married means you are currently legally married

Unmarried means you were married and may be divorced or widowed.

• Sole ownership: only one person owns the house
• Community property: two or more persons own the real estate Some states are not community property states
• Community property with right of survivorship: real estate bought during marriage or domestic partnership belongs equally to both partners. Each spouse owns 50%. Community property with right of survivorship may only be used by married couples in community property states (like California). Community property with right of survivorship is better from a capital gain tax standpoint in that the entire property (not just the half belonging to the deceased spouse) receives a step up in basis on the first death. This allows for a double step up if the remaining spouse continues to hold the property until his or her death. The problem with community property with right of survivorship is the same problem as joint tenancy–if all property owners die, the property must go through probate.
• Joint tenants with right of survivorship: the spouse who survives (or domestic partner) automatically assumes full ownership of the property upon the death of the other title holder. There is a so-called “right of survivorship,” which means that when one dies, the property automatically transfers to the survivor without the necessity of probating the estate.
• Tenants in common: 2 or more people the owners do not have a right of survivorship. Each owns a fractional share. They can sell their percentage share. Tenancy in common is a way that multiple related or unrelated people choose to take title to property. Ownership interests do not have to be equal and the interest can be specified in the deed. With tenants in common, upon the death of an owner, that owner’s interest is controlled by his or her will, or in the absence of a will through intestate succession, which means the State probate code tells you who gets the property.
• Living Trust: Revocable sets Trustee(s) who have the power to sell or mortgage and beneficiaries who will inherit. This avoids probate which I believe is very important. There are also Irrevocable Trusts which cannot be changed.

Caroline Gerardo

NMLS 324982

American Financial Network, Inc

NMLS company 236341

(949)  784  -9699

This is my personal opinion not legal advice

If you need legal advice about how to hold title for a property you own or

real estate you are buying feel free to call me and I will provide a referral for free

 

Save $95000.00 on your mortgage Tips and Tricks

What is a Loan Officer?

Loan officers are financial professionals who work for banks, credit unions, and other financial institutions. They are also called mortgage officers, loan agents, and mortgage advisors. They are licensed by the NMLS in individual states. Licensing requires classes, testing, background checks and more. The loan officer's primary role is to evaluate loan applications, collect proper paperwork documentation from borrowers, make the borrower appear the best possible on paper for Underwriters, auditors, and servicers. The loan officer finds the box that the borrower can fit inside, with many mortgage products to choose from the borrower may actually only match with a few. Loan officers are responsible for assessing the creditworthiness of borrowers and determining the amount of money that can be safely loaned. They also provide guidance to borrowers on the various loan products available and help them to understand the terms and conditions of their loans.

Loan officers can play a critical role in helping individuals and businesses to access the credit they need to purchase a home, start a business, or invest in other opportunities. They can help borrowers to find the right loan product that meets their needs, and they are responsible for ensuring that the loan process is completed in a timely and efficient manner.

It is crucial to find a responsible and trustworthy loan officer, who will provide you with the best options, rates, and terms. A loan officer with years of experience can share their knowledge and caring with borrowers.

The loan officer should be able to answer every question a borrower asks, they should be available by telephone to clarify all the details, and one you can trust their answers. A loan officer will have a network of other professionals to help you: referrals for insurance, CPA, attorney, handyman, escrow, title, valuation, and Realtors are a few of contacts you may need during the purchase transaction and for the years that you own a property. Loan officers are considered the brains of the transaction.

Now Is The Time To Invest In Real Estate

 

Investing in real estate during an economic downturn, or when the "knife is falling," can be a challenging and risky proposition. During such times, property values and rental incomes may decrease, making it difficult to turn a profit or even to maintain the value of your investment. We cannot know if we are entering another Global Recession, but I feel we are in recession in America now, January 2023.

However, it's also possible to find good deals on properties during a downturn. Prices may be lower, which can make it possible to purchase properties at a discount. Additionally, rental properties may be in high demand if people are unable to afford to purchase a home. Perhaps this is the perfect moment to get preapproved for a home loan and be shopping for deals.

If you are considering investing in real estate during an economic downturn, it's important to do your research and to be aware of the risks involved. It's also important to have a clear strategy in place, such as focusing on long-term investments or looking for properties in areas that are less affected by the downturn. My best advice is to stay the course on you job. Show up early and become more valuable. Having that W-2 income will make it easier to close on your investment property with a conventional loan. Even though interest rates are high, you will find property that cash flows.

Additionally, it is important to have a good cash reserve, as the market can be more volatile during an economic downturn and it can take longer to find tenants or buyers. Save your nest egg my grandmother always said.

Be prepared to close and immediately fill the rental with an excellent tenant. What is an excellent tenant? One with no evictions, FICO of 680, four times the rent as income that you verify, and who "fits" your location.

Overall, investing in real estate during an economic downturn can be risky but with the right approach and due diligence it can also be an opportunity to find good deals on properties.