Kelly Milligan

In the Gulf Coast region, many of our properties have U.S. Small Business Administration disaster loans on them, usually in second or third place. First Title Real Estate, LLC closed many of these loans. In 2007 & 2008, SBA would allow you to refinance your first mortgage, subordinating theirs with little restrictive requirements. It has since changed. SBA requires their form 770 to be filed out, a sort of mini financial statement. In addition, some of their requirements can include:

A letter of explanation of the reason(s) the subordination is being requested

A copy of the loan application

An appraisal of the subject property that is less than one year old

Verification of the balance(s) of the mortgages that are superior to their mortgage

An official title report of the property

A preliminary settlement statement reflecting teh intended disbursements

At this time, the biggest hurdle is NO CASH OUT over $2,000.00. You cannot payoff your vehicle, your credit cards, other lines of credit or anything else unless you are willing to inject 50% of the principle owned to SBA. It has halted many refinances here locally.

I understand their position. The disasters keep coming and repaying and/or paying down SBA loans refills the coffers so new loans can made to others without having to "find" the money to lend. It is disappointing when you are turned down, but chin up!! SBA money was lent at a rate of less than 3%. That is a very good rate and still hard to match.

To my knowledge, SBA doesn't report to the credit bureau at this time so it can be a surprise to the lender that you have an SBA mortgage. Before you dig deep into attempting to refinance your home, give First Title Real Estate, LLC a call. We can check the mortgage records, confirm what is out there, and give you a head start with the paper work SBA requires.

This Friday night, at the Harbor Center in Slidell, Louisiana, the Habitat for Humanity Annual Art Auction fundraiser will take place. Great food, beautiful art, great music....all in one place.

If you can, come out and join us. Feel free to contact me or the Habitat office for ticket information.

Some closings are just complicated, even if it's a cash sale. In May, First Title Real Estate, LLC had the opportunity to close a property owned by 3 elderly heirs who are from and live in Germany. I didn't think it would be a problem. (first problem, "I didn't think"!) In reviewing the purchase agreement, there was a signature by someone who is not on title. Flag goes up! It turned out that it was a son who had power of attorney for his mother. OK, I need to see a copy BUT, of course, it's in German. Not gonna do any of us any good. I send a specific POA for her to sign and assumed all would be well. Sounds ok so far. (I know, I ASSUMED)

I do some research on the requirements for notarization of the documents outside of the USA and learn they must be notarized by a US Consular notary, not a local German notary. The US Consular's offices throughout Germany are few. There is going to be some traveling necessary for all parties to sign the documents. This does not make the heirs happy BUT it is the correct and only way to get this done and issue title insurance.

Further communication with the attorneys in Germany reveal that one of the heirs passed away last October. No one bothered to tell the real estate agent or the local attorney who handled the succession (probate) putting the 3 heirs in possession of the property. Now we have to open an ancilliary succession to put the deceased's heirs into possession of the property. I can hear y'all groaning!! I felt fortunate to have discovered his name was signed by one of his heirs.

Time inevitably passes and I get documents from one attorney and they are PERFECT!! The documents from the other attorney are not. They made the decision to use their German Power of Attorney and sent a translated copy. Their Power of Attorney only allows for the managment of the heir's home and another specific piece of property, identified by its recordation information, in Germany. Screeching halt!!

Immediately, I sent an email letting the attorney know the documents are not sufficient for the sale and it is imperitave that the heir either sign the POA I sent or all of the closing documents, before a Consular notary. They did eventually travel to the Consular's office and send the properly executed documents to me.

All of the hoops we Title Companies require sellers and buyers to jump through is to ensure the purchaser(s) have peace of mind and confidence in the ownership of their investment. Without all of the "I"s being dotted and "T"s crossed, I could not and would not insure this property.

The sale did finally close, international wires sent and everyone was happy!!

Technical closings are truly my favorite. I learn something new every time and they usually do close.

Now, I'm off to the next challenge!

First Title presents the professional of the day……Heidi Crouch, owner of Tidy Heidi

Heidi Crouch is cleaning up Slidell! No matter how big or small the job may be, Tidy Heidi can help you. Tidy Heidi offers:

• one time cleanings for that family event you are planning (before or after)
  
• weekly, biweekly or monthly schedules
• small office cleanings
• vacant home sprucing up
• pre-move in and move out cleanings

A one time cleaning is a wonderful gift for an expectant mother, someone due to come home from surgery or that sloppy guy/girl friend we all have...I'm just saying!

If you have a preference or allergies relative to cleaning products, no problem. Tidy Heidi will use your products or her own, which ever you prefer.

Tidy Heidi's rates are reasonable and Tidy Heidi is bonded. Give her a call today (504)-512-4602 and be sparkling tomorrow!

The holiday weekend kicks off with the annual seafood fest. There will be music, food and fun for all!!

Fontainebleau State Park is a beautiful park with mossy oaks and a small beach on Lake Pontchartrain.

The fest starts today at 5pm and ends on July 4th! You can purchase tickets online and save a few bucks too.

BUT...

Presently, the Department of Health & Hospitals has issued an advisory to refrain from swimming at this time as their recent testing of the lake showed higher than normal bacteria levels.

So, I won't be swimming........but I will be eating and dancing to some great music. Come on out and have some fun!!

Hope to see you there!