Chapter 13 Bankruptcy and Your Title Company

Filing Chapter 13 Bankruptcy

When life deals you a bad deck of cards, you cannot win.  Your bills pile up and you face financial hardship, making your monthly mortgage payments may seem impossible. You may not know where to turn or what to do to recover financially. Filing for bankruptcy may seem like a painful alternative, but, in reality, it may be one of the most important and stress relieving decisions you will ever make.

What is Chapter 13 Bankruptcy? 

Bankruptcy is the legal process which allows financially strapped people get a “fresh start” in their financial life by taking advantage of the many benefits offered under the Bankruptcy Code

How Florida National Title Works With Bankruptcy

Having an experienced, competent title company is crucial to selling a home while the seller is in bankruptcy.  At Florida National Title, we work with your bankruptcy lawyer to obtain the necessary bankruptcy court orders required to allow a sale of your property.  Florida National Title performs closing services and issues title insurance policies for both residential and commercial properties. We have the experience and dedication to handle the most complex real estate transactions, even those in which bankruptcy is involved. We can address this title issue to ensure the title is clear and marketable and the home or building being conveyed will not be subject to any creditor’s liens. You can be assured that the title insurance policy we write for your transaction will protect Florida buyers and sellers from the pitfalls of selling a property during bankruptcy.

Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls.

Call us at (561)408-0729 or visit us at http://www.floridanationaltitle.com/

Florida National Title Services
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

Probate and Property Conveyance

What is Probate?

Probate is the process by which the court supervises the marshaling of assets of a deceased person, the payment of the decedent’s just debts and funeral expenses, and the distribution of the decedent’s property to the beneficiaries.  Importantly, the probate court oversees the transfer of the decedent’s real property, often requiring a court order to authorize the conveyance.

Property Conveyance

Conveyance is the act of transferring an ownership interest in real property from one party to another. Conveyance also refers to the written instrument, such as a deed or lease that transfers legal title of a property from the seller to the buyer.

Why is Probate Done?

A probate proceeding is most commonly opened to administer a will or supervise the distribution of a decedent’s estate when there is no will. There may be challenges to a will, such as claims that the decedent suffered from incapacity, was under duress or the subject of fraud. The probate court oversees the proper distribution of the decedent’s property and passing legal title to real property to the beneficiaries. A decedent’s estate may go through the probate process whether or not there is a will.  If the decedent has assets which cannot be legally distributed without a court’s supervision, a probate proceeding is mandatory.

Title companies play a significant role in performing an analysis of the title history of the property they are insuring, and, in particular, must pay critical attention that any past transfers from a deceased person is thoroughly examined to determine compliance with the laws, rules and required probate procedures governing conveyances from decedent’s estates.  At Florida National Title, we have a team with the qualifications, knowledge, experience, and dedication to properly handle any and all title issues that may arise.  

Any real property owned in the sole name of a deceased person, whether they reside in Florida or in another state or country, must be administered by the probate court located in the county where the property is located.  Be assured that Florida National Title has the expertise to evaluate the legal efficacy of past transactions and is in position to deal with any irregularities that may exist.

 

 

Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls.

Call us at (561)408-0729 or visit us at http://www.floridanationaltitle.com/

 

Florida National Title Services
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

Clear and Marketable Titles

Clear and Marketable Titles

Clear Titles

Florida National Title will conduct a thorough search on the title of the property you are purchasing and ensure there are no hidden defects. Prior to the closing, we will retrieve records on the property to be sure the title is clear of any liens, judgments or encumbrances which affect the marketability of your title…

Possible Title Defects

  • Errors or missing documents in the public records -clerical or filing errors can affect the deed to your property.
  • Unknown liens – prior owners may not have paid all their debts and their creditors can place liens on the property, even after the closing under some circumstances…
  • Problematic deeds – a married person who fails to reveal their marriage or an incompetent person, among other scenarios, can affect ownership.
  • Missing heirs – if the ownership in the title history gives an interest to an heir who is missing, they may return and contest their right to their interest in the property, sometimes long after your purchase.
  • Forgeries – forged records may affect your right to the property.
  • Undiscovered encumbrances – an unknown third party may have rights to your property.
  • Unknown easements – an easement can affect your using the property as you like or could allow strangers to access parts of your property.
  • Boundary/survey disputes – surveys may exist showing differing boundaries.
  • False impersonation of the previous owner – if you purchase a home from an imposter who pretends to own the property, you risk losing your purchase funds while still owing your lender for any mortgage proceeds.

Μarketable Titles

A marketable title is the result of a chain of ownership free from defects and can be marketed for sale with no corrective measures needed to be taken by the seller. A marketable title means that a property carries ownership rights strong enough to be sold. A title is safe and will not stand in the way of a buyer’s decision to purchase. Marketable titles may also include properties that have defects that will be remedied before or at the time of closing.

Ironically, an existing mortgage is a serious title defect since buyers do not want to buy properties which are burdened by a prior owner’s mortgage lien. However, buyers know the mortgage lien will be removed at closing when they provide the money to the seller to pay off the mortgage and have the lien released.

Insurable Titles

An insurable title means there are no defects that could affect a prospective owner’s interest in buying a property.

Florida National Title

Florida National Title will work diligently to research your title to give you the peace of mind and confidence to move forward with your purchase. Our seasoned professionals are ready to handle any title task no matter how complex.

Title Services, Jupiter, FL

 

 

Florida National Title has years of experience guiding Florida home buyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls.

Call us at (561)408-0729 or visit us at http://www.floridanationaltitle.com/

 

Florida National Title Services
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

 

Foreclosures – Are They Really a Great Deal?

Pros and Cons of Purchasing a Foreclosure

The primary reason to consider purchasing a foreclosure is to get get a great deal. Homebuyers (or investors) may be able to get a great deal on a foreclosure since the winning bid is usually less than market value. But is it really a good idea? What are the risks? It is also important to know the difference between a pre-foreclosure and a foreclosure. A pre-foreclosure is a property in danger of falling into foreclosure, but the process has not yet been started.  A foreclosure action is completed when a home is sold at auction with the proceeds going to the creditor bringing the foreclosure action.

Preforeclosures

When a homeowner has fallen behind in payments and the lender has filed a notice of default but not yet started a foreclosure lawsuit the property is in pre-foreclosure.  The pre-foreclosure period gives the homeowner time to catch up on past-due mortgage payments plus fees, sell the home to pay off the loan, or work out an alternative to foreclosure, like a mortgage modification, short sale, or deed in lieu of foreclosure. While these steps can also be taken after a foreclosure action has been started, the time limitations to accomplish these goals can be difficult to meet before the home is sold at auction. A person seeking to purchase a home can learn about potential pre-foreclosures by subscribing to a site such as foreclosures.com. Even though the bank does not own the property yet, aggressive homebuyers can search for and make offers on homes worth more than what is owed before a foreclosure action is started.  The transaction must be completed before the property goes to auction.

Foreclosures

When searching for foreclosures, it is best to work with an agent specializing in foreclosures. You will be communicating with a lender solely invested in selling the property. Buying foreclosures are especially risky since the property purchased at auction may be saddled with liens that the auction buyer inherits, and may require substantial repairs to render the property liveable or saleable.  The auction buyer must investigate the property before bidding so that there are no unpleasant – and costly – surprises.  Buying a foreclosure can result in a true bargain when done correctly or a costly decision when approached carelessly.

Foreclosure Tips

  1. Do not go it alone – be sure to work with a real estate and title professional.
  2. Understand the legal implications.
  3. Obtain a clear title to the foreclosure.
  4. Be sure to have the property inspected.
  5. Be careful not to buy more than you can afford.
  6. Knowing how to deal with the bank.
  7. Falling in love with your new home.

Title Services, Jupiter, FL

Florida National Title Service offers foreclosure title services and can help you safely get a title for your new home.     Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at http://www.floridanationaltitle.com/

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

 

The Importance of Title Insurance

The Importance of Title Insurance

In last month’s blog, we explained what title insurance is. In this month’s blog, we explain why title insurance is so important.

What is Title Insurance?

Owners’ Title insurance is a form of insurance which ensures the property owner against financial loss from defects in title to real property.

Why Title Insurance is Necessary

Simply put, title insurance is your best protection against potential defects that can remain hidden despite the most thorough search of public records.  The most common title defects are:

  • A forged signature on a prior deed could mean your seller did not own the property being conveyed to you.
  • Mistakes in public records.
  • An unknown heir of a previous owner may claim ownership of the property if proper probate procedures were not followed upon the death of a previous owner.
  • A deed may have been signed by a person under age or by someone adjudicated incompetent.
  • A deed may have been signed under an improper, revoked or void power of attorney.
  • A deed may have been made by a person other than the owner, but with the same name as the owner.
  • The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
  • A deed or mortgage may have been procured by fraud or duress.
  • Title transferred by an heir may be subject to a federal estate tax lien.
  • A person presumed dead may appear and recover the property.
  • A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
  • A deed may be voidable because it was signed while the grantor was in bankruptcy.
  • There may be a defect in the recording of a document of which your title is dependent.
  • There may be claims made by non-existent or divorced “wives” or “husbands.”

Over the last 24 years, claims have risen dramatically. Title insurance:

  • Covers attorneys’ fees and court costs.
  • Helps speed negotiations when you’re ready to sell or obtain a loan.
  • Eliminates delays and technicalities when passing your title on to someone else.
  • Reimburses you for the amount of your covered losses.

 

Florida National Title can help you with all of your title insurance needs.

Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at.

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

 

Title Insurance: 101

Title Insurance: 101

Title insurance is a form of insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

Why Title Insurance is Necessary

When you buy a home, you are given a title to the property which should mean you have full legal ownership, but what if there is a hidden mistake in a deed, will or mortgage? This mistake could allow someone else to claim your property and it will be legal. Protecting a new home buyer against loss if a defect is found in your title can rest your mind and save you time and money. Most importantly, it can save your home. Title insurance provides significant value to homeowners and title companies, such as Florida National Title fixes most problems without the home buyer even being aware they existed.

How Title Insurance Differs from Other Types of Insurance

Florida National Title will perform a title search through public records to ensure there are no judgments liens, taxes or assessments that affect ownership of the property. Title insurance differs from other types of insurance coverage because it emphasizes risk prevention rather than risk assumption. In other words, title insurance insures against events that occurred in the past. This coverage helps avoid claims and losses in real estate transactions. The majority of the title insurance premium goes towards the research Florida National Title does to ensure there are no matters affecting the home buyer getting their title free and clear.

Types of Title Insurance

  1. The Lender’s Policy only protects the lender’s interest in a property should a problem arise. It will not pay the homeowner’s legal expenses if there is a title problem. An owner’s title insurance policy will be needed to protect the homeowner.
  2. Owner’s title insurance is issued in the amount of the purchase. Only this type of title policy protects the homeowner if a problem arises that was not found during the title search.

What does an owner’s policy cover?

Standard coverage handles risks, such as:

  • Lack of competency, capacity or legal authority of a party;
  • Undisclosed (but recorded) prior mortgage or lien;
  • Undisclosed (but recorded) easement or use restrictions;
  • Erroneous or inadequate legal description;
  • Lack of right of access;
  • Deed not joined in by a necessary party; and
  • Deed not properly recorded.

     Florida National Title

Florida National Title are experts with all things title-related and can help you understand the benefits of title insurance, why it is necessary and how to open a policy. We will help you navigate through the steps of buying title insurance.         Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at 

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

 

FIRPTA Has Changed

FIRPTA has Changed

What is FIRPTA?

Until 1980, nonresident aliens could sell property in the U.S. without incurring a tax liability for on the gains. The Foreign Investment in Real Property Tax Act was enacted to secure payment of U.S. Income tax when the seller of the house is a non-resident foreign person or corporation and therefore, does not pay U.S. taxes. If the foreign seller does not pay the percentage of income tax to the IRS, then the buyer must pay these taxes.

How FRIPTA Works

FIRPTA applies to all purchases of residences priced for $300,000 or more. If FIRPTA does apply to your purchase, you have 20 days to file form 8288 with the IRS. This form acknowledges a 15% withholding tax. Penalties will apply if you do not file the form on time, withhold the required amount or submit the withholding. You can download form 8288 or find out more information about FIRPTA at the IRS Web site and type FIRPTA.

FIRPTA’s Changes

FIRPTA always required a purchaser of real estate from a non-resident foreign seller to withhold a percentage of the gross sales price to secure payment for applicable U.S. Income Tax. Historically, the base amount withheld was ten percent of the gross sales price. On February 16, 2016, settlement agencies began holding back fifteen percent from the sale of the property.

FIRPTA Exemptions

  • A sales price under $300,000
  • A buyer or family member has plans to reside at the property for at least 50% of the first two years.
  • The seller provides a certificate stating they are U.S. citizen or Resident alien.
  • A seller may apply for and receive a withholding certificate prior to the IRS excusing or reducing withholding.

Does FRIPTA Affect You?   This act will only affect you if you are buying a home from a someone who is not a United States citizen. As a buyer, it is your responsibility to identify whether the seller is not a U.S. citizen and subject to the FIRPTA withholding. Failure to comply means that you, as the buyer, could be responsible for the tax. Florida National Title can guide you through the process of purchasing a home from a foreign seller. Call us today to ensure you are following all the correct procedures and understand FIRPTA, so your transaction goes off without a hitch.  

Title Services, Jupiter, FL

Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls.

Call us at (561)408-0729 or visit us at

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2017. All Rights Reserved.

 

Buying the Perfect Home

           You Are Buying the Perfect House to Be Your Home

When you are house hunting, always remember that you are not only buying a house, you are buying a home. A home should meet the needs of you and your family and be in an area that is convenient to work, shopping, family, and friends. It should have the appropriate number of bedrooms, bathrooms and living space. It should not require more maintenance or renovation than you are able or willing to provide. It is essential that you consider your income and calculate your expenses to ensure that you can afford the monthly mortgage payments which is often ½ of the cost of your annual home insurance and real estate taxes and factor in the cost of maintaining your new home. Costs for repairs of a resale are inevitable even when the home comes with a new home warranty. When buying your home, keep in mind that its value on a day to day basis should not be a concern. While many people consider real estate as an investment, the primary objective in buying a home is to provide security and shelter for your family without stressing about the costs and responsibilities that go along with it. It is a natural phenomenon that values of homes increase and decrease. You want your home to improve your quality of life.   Why your home is not an investment https://www.moneyunder30.com/why-your-house-is-not-an-investment

Title Services http://www.floridanationaltitle.com/services/ screen-shot-2016-12-16-at-3-14-45-pm

Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2016. All Rights Reserved.

Home Buying Tips

Florida Title Servies

       Your First Home

Buying a home is a life-changing experience and to make the process less daunting, here are some tips for new homebuyers.

  • Check your credit score – the three credit bureaus are required to give you a free copy of your report once a year
  • Determine how much you can afford
  • Make a down payment plan
  • Get pre-approved for a loan
  • Make an offer on a home
  • Get a home inspection
  • Get insurance
  • Do a final walk-through
  • Wire funds to closing
  • Congratulations

Buying a home is a lot of effort, but the rewards outweigh the effort. Each step for the first time homebuyer is a new and unfamiliar experience. Dealing with real estate agents, title companies, mortgage brokers, home inspectors, surveyors, and, possibly, real estate lawyers is daunting. Many may use unfamiliar jargon which can be stressful to the new homebuyer. You will be requested to provide voluminous documentation to your mortgage lender and be signing official-looking legal documents provided by the title company. It is easy to become overwhelmed, but remember, even the most experienced buyers require guidance. Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls.

Title Service, Jupiter, FL

Call us at (561)408-0731 or visit us at.

 

Florida National Title Services

250 S. Central Blvd., Suite 101

Jupiter, Florida 33458

Phone: (561) 408-0729

© Copyright 2016. All Rights Reserved.