Now that you are an owner of your home did you know you can set up a Trust as a good way to protect your assets during your life? It can provide financial security for your children and your spouse. The probate process is avoided for assets put into the trust and eliminate or reduce estate taxes for your beneficiaries, which can be as high as 30%.
The following steps will help you determine what type of trust is best for you. I would recommend contacting an CPA. I partner with A&M Enterprise, Anne Petty, to help my clients setup trusts for their homes. Feel free to contact her directly at 702-870-4252 . If you have specific questions call me at 702-212-2288 .
Step 1Investigate types of trusts. A "living trust" is one in which assets are used and controlled by you during your lifetime and are distributed when you die as directed by the trust.
Step 2Unlike a living trust, a "testamentary trust" takes effect when you die. It is usually tied to a will and can help eliminate or reduce estate taxes for your beneficiaries. A testamentary trust does not avoid probate.
Step 3Set up the trust once you have determined the type you need. Determine who you want as your trustee (the person responsible for ensuring that the terms of the trust agreement are carried out).
Step 4Consult with your bank, attorney or certified financial adviser.
Step 5Obtain the appropriate documents from your adviser (or purchase a software program to assist you) and complete them to set up the trust.
Step 6Fund a living trust. Identify which assets to include in your living trust. These are the assets over which you have control and wish to control during your lifetime.
Step 7Change the titles of these assets; you'll be putting them in the name of your trust.
Today's topic is on foreclosures and liens. HOA lien is not removed as the result of a foreclosure. This is because the recordation of the lien references the CC&Rs which are dated prior to the date of the foreclosure so they are considered to have superior status. HOA liens are konw as Super Liens. Once a bank has taken possession of a proeprty through foreclosure it is considered the legal owner and must follow legal requirements to convey title to a buyer. Clearing the status of liens is one of those requirements. Thus the bank will bring all outstanding liens current before transfer of the property. Repayment of HOA liens only go back 6 months. If a year has passed before the bank takes possession, the HOA will only recomver six months of back payemtns. The rest is written off as a business expense. So will the HOA take the owner to collections to recover any extra debt not paid by the bank? So far there are no cases of this happening. In a foreclosure the bank gets the house. So far they haven't tried to get anything more from the seller either.
After I complete a real estate transaction I find it difficult to keep constant contact with all of my clients. Email is the best communication vehicle; the least time consuming and the most economical. One of the services I provide after closing is referring vendors and partners whom I trust to help people in the areas of taxes, setting up trusts to protect assets, repairman (everyone needs a good one) and more.
Letting people know an CPA is able to amend our taxes for the past 3 years can potentially bring new found money to families who really need it.
Setting up trusts and protecting a homeowner's assets prevent our homes from going to probate court in the case of unforeseen events. Planning ahead is one of the key to success.
Hiring a reliable repairman will help save lots of money for small maintenance jobs. Did you know homeowners who are selling their homes can add a home warranty without cost while the house is listed on the market for sale? It's a feature negotiated between your Realtor and Home Warranty companies on your behalf therefore hire a Realtor and find out all the benefits of proper representation!
For all of your real estate needs in Las Vegas contact xlu2006@kw.com!
My name is Xiao-Qing Lu, pronounced Shall-Ching, an CEO of my real estate business at Keller Williams Realty Las Vegas. The current economic conditions, rising rates of unemployment, and depressed home values in many markets point to continued increase in mortgage defaults, short sales, and sales of foreclosed and REO properties.
This letter serves as a resource for you navigating through the options available to homeowners, including refinancing, loan modification, lender workout, short sale, and doing nothing and walking away.
Additionally my team and I have put together a FREE seminar and would like to take this opportunity to personally invite you to join us. It will be held the 2nd Thursday of every month at 5:30pm. We will have Attorneys and Realtors present to answer any questions you have for FREE.
Options For Home Owners
Option 1: Loan Modification The loss mitigation department of your mortgage company may make arrangements with you to pay some of the back payments now and the balance within a certain time period. A typical example - You owe $9,000 in back payments, attorneys' fees, etc. Your mortgage company may accept $4,500 now and $750 per month for the next 6 months.. A loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. A loan modification is easier to arrange prior to the mortgage company filing a notice of default.
Option 2: Refinance Arranging new financing will depend on your income, credit report, value of your home and the amount of your equity. If you're not sure of the value of your home give me a call. I would be glad to help and off course there's no obligation. If you attempt to refinance or modify your loan, you should always have a backup plan available to you.
Option 3: Chapter 13 Bankruptcy Filing bankruptcy will postpone a property foreclosure sale date. Immediately after filing a Chapter 13 Bankruptcy, homeowner must file a repayment plan with the courts. This plan has to show that you have sufficient monthly income to pay basic living expenses. In addition your income must be sufficient to resume making monthly mortgage payments. All past due amounts are usually spread out between 24 and 60 months. A Bankruptcy attorney charges between $1,000 to $2,000.
Option 4: Short Sale Your HomeThis is probably the most underutilized option available to you. The market is very active and right now there are more buyers than there are homes for them to buy. If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home which will provide you and your family the greatest opportunity for a fresh start. If you owe more than your home is worth a "short sale" may be an option. In this case I can take care of all of the paperwork, marketing your home, and negotiate with the lender on your behalf. If saving your house seems unlikely, you should call me as soon as possible. Because of the time sensitive nature of your situation, this is not a time to do it alone.
Option 5: Let Your Home Be Sold On the Courthouse Steps By far, the worst option available to you! Many people feel "I have no equity, let the bank take it", but homes that are sold on the courthouse steps typically sell between 50% and 70% of their fair market value. Moreover, if a bank suffers a loss due to the pending foreclosure action against you, they also have an option. They can file a deficiency judgment against you and pursue you for the amount of their loss.
If I can be of any assistance please do not hesitate to contact me at 702-212-2288 .
Best Regards,
Xiao-Qing Lu
Total number of homes available in Las Vegas today is 10,162. This includes single family homes, condos, and townhomes. With 3,661 homes sold in the month of April, the $8,000 tax credit expired on 4/30, there are common questions now asked the curious. Will home prices start to fall? Will Banks release more homes on the market? Will people continue to buy? No one has an exact answer. However we will know when the market starts to turn around when banks begin to help homeowners who have foreclosured and offer to help to repair their credit. Click on the link below and follow Golden1 Credit Union, a California based bank who started to help homeowners purchase their next home after recent foreclosure. https://www.golden1.com/aboutus/mortgageassistance.aspx
In the month of April 3,661 homes were sold. Based on the rate of aborption it will take 2.8 months for Las Vegas to consume all the available inventory.
To better predict what's happening in the future I'm also delving into notice of defaults (NODs) filed and number of foreclosed homes. This information is current which gives us all a better picture of what's to come. As of April month 17,122 NODs were filed; meaning 17,122 homes are behind on their payments for at least 90 days. Many homeowners are residing in the homes. As of yesterday 5/14/10, banks took back 299 homes due to foreclosure. The unknown is the pipeline of inventory from the NODs. For further discussion or clarification feel free to email me.
Real Estate Professional with MBA in Business Management, BS in Industrial Engineering. I work with first time home buyers and first time investors to begin building wealth for you and your family.
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