All Forum Posts by: Account Closed

How was title held prior to the husband 's passing? Was wife also on title? If so, did wife and husband hold title as tenants by the entirety or as joint tenants? If so, wife will be able to exercise her rights of survivorship and as a result should eliminate any probate proceedings. In any case, the lender is in the process of iniating foreclosure on the property, so you still have that to deal with along with the IRS lien.

 Sure. I wouldn't call it a risk free heloc investment plan though since you would have to carry some kind of debt. If you have a balance on your line of credit say $100k and you have $50k lying around in your traditional savings account earning very little to no interest, why not park that $50k in your line of credit? You'll save on the interest owed and if you ever need to use the money, you can withdraw the funds at any time with no penalties.

Since interest is calculated on an average daily balance, my numbers are only estimates. So a line of credit with a 4% interest rate with a balance of $100k would cost a person $4,000 in interest for the first year. If $50k is parked into the line, then only a balance of $50k is calculated for interest which comes out to $2,000 instead of $4,000. That's a $2,000 savings.

Note that the money I parked into my heloc does not earn me any money as would a traditional savings account but it does save me on the interest owed. I see it as being one and the same.

Please note that this method works for me and my husband and what works for us may not work for you. If you have no debt, this approach wouldn't work at all. Also, if you're taking advantage of tax deductions, then obviously this approach wouldn't work as well.

Me and my husband park our money in our heloc account. The interest we earn is the interest we save, if that makes any sense. By keeping our balance low, our monthly interest owed is not as high. We only withdraw funds once a month to pay bills.

Clean title as in chain of title, how title is currently vested. Maybe not for you but I find comfort in knowing that I can file a claim in the event Im not the rightful owner of my property.

Encumbrances such as liens, judgments, encroachments, agreements, easements, etc. (minus how title is vested) is another matter I did not intend for anyone to get confused with on my post if that's what you mean by exceptions/exclusions. In this event, you will still need to do your own due diligence.

Hope Ive cleared up any confusion. In any case, Im going to stop now because my choice of words have been sucking lately. 

 I should rephrase. Since the deed was not insured by a title company, the title researchers would have to review chain of title more thoroughly before they can insure the property as having clean title. 

I'm from Hawaii so I can't speak for the state you live in but if the deed has been insured by a title company, we can trust title is clean. I've worked in the title industry and I've seen deeds that were not insured get recorded only to find out that property was not transferred appropriately.  For example, I remember working on one where a husband and wife acquired title but at some point got a divorce and the ex wife passed away. After some time the husband decided to convey the property to another party. Since the husband and wife divorced prior to the ex wife passing away, he did not have rights of survivorship and so the new owner who obtained the property thinking she acquired it free and clear realized she only owned 50% interest. I don't know what came out of that situation but the property had to go through probate.

Title can be transferred without title insurance, that is true. But when it comes time to take out a mortgage, the lender will require one.  

I would need to review the actual title report and deed in question to get a better assessment. Many people from Hawaii record frivolous docs all the time. Many of them claiming to be descendants of King Kamehameha I record deeds to their names on properties they dont own. It's funny but a lot of headache.

Since the deed was not insured by a title company, it won't be recognized as a valid deed. Contact the title company who issued you your report and let them know the deed in question is fradulent. You can provide a copy of the owner's brother's death certificate and have them revise your title report.

 Hey Vanessa -- Im not familiar with the foreclosure laws in Detroit but I do have experience with foreclosure proceedings in the state of Hawaii. Note Im not a real estate attorney so take what I say with a grain of salt.

Youll need to figure out what stage of the foreclosure process the property is in. Pull up the court dockets and get a copy of the final judgment (if there is one) and then consult with a real estate attorney. 

From a title perspective, the property does not have clean title if another party owns the note and was not properly cited in the foreclosure proceedings and therefore may not be insurable. No lender or investor would want to take on such risk.

Hawaii - Depending on the transaction, escrow handles the closing by ordering the title report from the title company, payoff demands, signing of docs, wiring of funds. At time of closing, escrow will deliver the closing docs to the title company for recordation at the bureau.  The title policy is mailed to the insured party by the title company when it is completed.

The above is pretty much standard for most real estate transactions in Hawaii except when you're dealing with foreclosures. Closings on foreclosures where the property reverts back to the lender is sometimes handled by the attorney's office. Title work is usually ordered by the attorney prior to the initiation of foreclosure and that research is always performed by a title company.