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Tag : aba
Welcome friends to the next installment of Divorce and Real Estate, Don’t be Dumb! After posting the original blog, I had several requests to elaborate on the possible remedies to the property situation. To the rescue was one of my favorite guys and world class mortgage loan originator, Jim Barker. Jim suggested an article he often refers to written by Tracy Achen for Womensdivorce.com. Tracy’s advice is fantastic for both men and women, I’ve included excepts from her article below because let’s be honest, she is clearly smarter than I am. Don’t be dumb.
Retain the Original Mortgage
Unfortunately, this is the option that many people unknowingly make when they get a divorce. In essence one spouse agrees to keep the home, but the mortgage isn’t changed after the divorce is finalized. If this is your situation, realize that if your ex doesn’t make the mortgage payments, it can ruin your credit if your ex defaults on the loan.
Maybe you want to retain the co-ownership of the home and leave the original mortgage intact until the children are grown. Once the children are gone, the house can be sold and the proceeds can be split. To make this arrangement work, both you and your ex should be able to cooperate in such a way that the mortgage payments, taxes and upkeep are paid in a timely fashion.
Like I said earlier, this is a risky proposition. First of all, do you really want to keep that closely tied to your ex. Secondly, if your ex has any future liens filed against him, they can be attached to your house. This ties up the title and makes it harder to sell the house. And finally, having an existing mortgage can make it difficult to qualify for a new mortgage because it will increase your debt to income ratio. You’re better off trying some of the other divorce mortgage options below.
Sell the House
One of the easiest ways to remove your liability from the mortgage when getting divorced is by selling the marital home. The proceeds from the sale will first be used to pay off the existing mortgage, and anything that is left over after closing costs can then be split between you and your spouse. Generally, it’s a good idea to sell the house before your divorce is finalized to prevent future opportunities to fight over the sales price. Plus, neither of you will have to worry about the other not making mortgage payments, maintaining the house, or paying taxes and insurance.
One Spouse Keeps the Home and Refinances the Mortgage
This is a common strategy when one spouse wants to keep the home. In this situation, the spouse who wants the house generally buys out the other spouse’s equity share and refinances the mortgage into his or her own name. If you’ll be keeping the house, it is important to have your spouse sign a quit claim deed which relinquishes his ownership and rights to the property.
If your spouse is the one who will be keeping the home, it is very important that the mortgage be refinanced in his name only. As long as your name remains on the mortgage, you will continue to be liable for the mortgage payments should your ex default on the loan.
If your divorce is not yet finalized and your ex will be keeping the home, it’s a good idea to include language in your divorce decree that your spouse will refinance the home. Along with this, you should also have your spouse sign a Deed of Trust to Secure Assumption. This gives you the right to foreclose and take back ownership of the house if he fails to refinance and subsequently defaults on the mortgage. After your divorce papers are signed and everything is finalized, you need to notify the mortgage lender of your security interest and request that they notify you at your current address of any missed payments.
One Spouse Keeps the Home and Assumes the Mortgage
A divorce mortgage assumption can be a good option if your bank will approve it, but you should realize that not all mortgages are assumable. Therefore, the first thing to do is to contact your mortgage lender to see if they will allow you to assume the loan.
If the mortgage lender will let you assume the loan, you begin the process by filling out the assumption agreement and a release of liability. The lender will also need documentation to determine if you can pay the mortgage based solely on your own income. If you meet the lenders underwriting guidelines, you may also need to furnish a copy of the quit claim deed as well as a copy of your divorce decree. If the assumption is approved, the lender generally executes a release of liability to the other spouse.
This can be a good option if your bank will allow the assumption and you have good terms on your existing mortgage. Even though there are assumption fees, they are usually much less than what it would cost to refinance the mortgage.
Copied from WomansDivorce.com. Read more at: http://www.womansdivorce.com/divorce-mortgage.html#ixzz3xuOJ83nj
There you have it folks, a cheat sheet for your options when it comes to your divorce and real estate. I’d like to thank Jim Barker again for this information. If you’d like to contact Jim to learn more about your mortgage options, you can reach him at 602-686-1885, JBarker@spfcnet.com or click here for more information. As always you can reach me at Caily@CailySellsAZ.com or through my website.
Categories: Real Estate
Let me start by saying, I am not an attorney, nor do I pretend to be one, but I do know a thing about divorce, real estate and being dumb. I am a real estate expert and I spent years wading through my own messy divorce and the aftermath, so I’d like to pass on a thing or two that I learned in the process. Take or leave my advice, there are a few things I wish someone would have told me, now I am telling you.
One piece of advice I received from my attorney was this…
If you are the one moving out of the family home, take half of the stuff, don’t leave it so that the kids will be more comfortable, they need to be comfortable at your house too.
This was great advice. The kids, if you have them, need some familiarity at both houses. In the same vein, lets talk property. In my case, though I liked the home we bought when married, my ex was adamant that he keep the home, and frankly, I could not have afforded it as a single parent, so I agreed. Now its all well and good up to here, this is the point I went wrong. Don’t be like me, do not do this. I agreed to allow my ex two and a half years to refi the house and get my name off of it. Why so long? No reason really, that’s what he wanted, I was exhausted and tired of fighting so I agreed. Dumb. So dumb. Guess what? Two and a half years later, he did not hold up his end of the deal. The house has not been refinanced. That means, my credit is at his mercy. It also means that I can not qualify to purchase a car, my own home (there are a few lenders who can help somewhat with options here) or get personal credit regardless of my good credit score. My name on the house means my debt to income ratio is seriously out of wack. Doesn’t he have to comply? Eh. Didn’t we make this deal legally and through the court system? Yep. So now what? Well, I hire an attorney, get a hearing with a judge (which takes months), spend thousands more to get him to comply with a deal he is already legally obligated to comply with. Is it fair? No. Is it just the way it is? Yes, and its not worth ranting over, instead just avoid the mistake.
Bottom line, divorce is rough stuff no matter how you slice it, but making fewer emotional choices and more logical ones, will save you some heartburn in the end. For more information about me and Caily Sells AZ, please vist my website!
Categories: Real Estate
Obviously you are smarter than your Realtor! Isn’t everyone? I mean this simply must be the case, otherwise, why would you be ignoring the advice of the trained professional that you hired? Hmmm, but wait, doesn’t your agent do this like day in and day out? It’s almost like they buy and sell houses for a living.
Do you detect any sarcasm? If the answer is no, go ahead and close this blog out now. Save yourself.
Folks, seriously, stop ignoring the advice of your Realtor. When they tell you the price you want for your house is too high, it is. The single biggest factor in a home spending more days on market than necessary is price. Think your agent wants to price the house too low to get it sold? Think again. The more your home sells for, the more money your agent makes, it’s a little thing we like to call commission based sales. Next, I am telling you, your agent wants to get more business in the neighborhood. You know what really irks the neighbors? Undercutting the value of their home by selling the neighbor’s house for next to nothing. Hire a good agent and they are going to work to get you as much for your home as they can, but they can’t magically wish the value of your home higher, so help them, help you.
A great agent (me, me) will walk you through your home and make suggestions for reasonable repairs and updates. There’s a chance they know what they are talking about. Just a chance. Maybe consider NOT blowing off their suggestions. I know you love your house and think everyone else will too. They won’t. Listen to your agent.
When your agent brings you feedback from other agents who have shown your home, put your giant house ego away and listen! Showing feedback is like gold! This is the feedback from potential buyers who have been through your home. It’s good stuff and can be a very useful tool if you can handle the truth. If the feedback is consistently that your collection of fuzzy bunnies with googly eyes is creepy and makes people want to run screaming, go ahead and store them for later. If you hear that your life size bozo the clown statue is too distracting for buyers, go ahead and send bozo on a holiday. You can bring him back in your new home. (Or never again). Don’t ignore the agent feedback, they are simply the messenger, and the message is worth your time.
I get it, you can beat your real estate agent in chess, you school them at monopoly and you could open a can of Trivial Pursuit whoop ass at any moment, but I am willing to bet your agent has bought and sold many more houses than you have. I will also bet that in a given week, they have been in and out of more strange houses than you have all year, So consider this, they might, just might have the experience here to get the job done. If you hire them, trust them, you’ll save yourself some aggravation in the long run.
For more unsolicited opinions and general bossing around, feel free to visit my website, or contact me at Caily@CailySellsAZ.com. Looking for a GREAT realtor in the Phoenix, Scottsdale, Paradise Valley area, check me out, I consider myself pretty great. (Someone has to)
Some funny for your Friday!
Don’t Jump! They got it wrong.
Ahhhh the Phoenix housing market. It went up, up, up and down, down, down, and up again. Some people are feeling like they might be the kid who pukes on the roller coaster. Recently, it was reported by a group out of California, known as RealtyTrac, that the phoenix market just took a major hit. Their report essentially said that the foreclosure rate just sky rocketed 100%, making Phoenix the third largest foreclosure market behind two California cities, one being LA. Bring on the sweaty palms, and dizzy spell. Here we go again. Does this ride have a barf bag? The news comes out, and every news outlet grabs ahold of it. It’s widely reported and widely believed.
Not so fast…Michael Orr, the director of the Center for Real Estate Theory and Practice at the ASU WP Carey School of business, says that’s just plain false. In fact, according to him, that Math isn’t adding up at all
“California-based RealtyTrac reported a 104 percent increase in foreclosure filings in January of 2015, compared to December of 2014. The company also reported foreclosures were up 45 percent from January 2014, and at a 20-month high.
“Math is math,” Mike Orr of Arizona State University’s WP Carey School of Business.
“There was certainly nothing special about January. January [foreclosures were] lower than December,” he said.
Orr has been compiling foreclosure statistics for years, and suspects RealtyTrac had a backlog of data, which went into their database for January, and caused the spike.”
Read the entire article Here
And so, this brings up a very important point. The news reported is not always accurate. Don’t freak out based on the stories you hear reported. If you have questions about the Real Estate market and trends, please feel free to call me anytime! I can always be reached at 480-577-4317 or Caily@CailySellsAZ.com for questions. I believe it is always better to talk with someone on the ground who is doing the work. For now, feel free to put your barf bag away, come in off the ledge and rest assured that the Phoenix Market is doing well. We aren’t breaking records at the moment, but prices are up and sales are doing just fine.
From my insurance ninja! 5 Common mistakes when purchasing homeowners insurance.
For today’s scintillating blog I am turning to my favorite insurance agent, Jennifer Coak with AAA of Arizona. Jennifer is an insurance ninja who forever answers my absurd questions, takes care of my personal insurance, and is always my first referral to clients needing insurance. I keep a rolodex (5 points if you know what that is, 10 points if you have one) packed with the very best referral partners for my real estate clients, and Jen is at the top of the list.
I recently bugged Jennifer to give me a few common homeowners insurance struggles, check them out…
1.) Understanding what you are buying. How much money do you spend each year on insurance? My guess is thousands of dollars. Would you buy a car without knowing what the features included, or how long the warranty was in effect? Ask questions until you understand. Everybody thinks, I have “full coverage” or “its insured”, but every policy has exclusions in it. Some good questions to ask might include: Is my jewelry covered? For what value? How about my guns or baseball card collection? What if my tree falls in a storm on my neighbors house? Do I have glass coverage like my car, I have more windows in my house? What exactly is liability insurance?
2.) Determining the insured value of the home. The bank wants to cover their loan, the insurance company wants to insure the replacement or repair cost. When the housing market is up, the bank wants more coverage than the building costs and they are not happy, when the market is down, the insured feels like they might be paying for more coverage than the home is worth since “they didn’t pay that much for the house”. the solution- let the insurance agent determine the insurance value. Jen has the tools to determine the value no matter what size the home. Many factors that can impact the value of the home but not the replacement cost include land- size matters to the bank, but not the insurance agent. Location- face it, some areas of town cost more when shopping for the same size house.
3.) Umbrella coverage is not an extra policy to cover your rain gear. An umbrella is used to extend the limits of liability coverage on your home and auto and fill in gaps, that may occur inside of your insurance portfolio. A good example would be person that does NOT own a boat. however, while on vacation decides to rent a jet ski. This coverage will extend above and beyond the limits you may purchase from the rental outfit covering any damage you may have caused. Cause lets face it, you’re probably going to break it.
4.) Why does it cost so much to insure my teenage driver? We both know, insurance companies are in this game to make a profit. It’s how they entertain us with lizards in their commercials and Flo comparing rates. This industry has collected so much information, all they do is analyze and predict based on recent data. The current data says, 3 in 5 drivers will have an accident before they turn 21. Now that most schools have discontinued driver education, those numbers will likely continue to trend upward. Lets answer the biggest, best idea, dad ever had to beat the system- what if I buy Jr his own policy with minimum coverage and save some money??? Well, if dad has figured it out, so have the courts and insurance companies. If Jr lives with dad or has regular access to use his car, then Dad’s coverage kicks in where Jr’s runs out and instead of having one claim, you now each have one. (ask Jen)
5.) How do I maximize the discounts like Aaron Rogers suggest? Insurance companies must file their rates with the department of insurance. They file really high rates so they can raise them on you if they want to run you off. They then give you discounts to attract the people they feel will be the lowest insurance risk in their model. The most common discounts are found when combining policies such as home and auto. There are 100+ discounts available from nearly every insurance carrier around. Finding a knowledgable agent you can trust is the key to maximizing those discounts. What defines a trustworthy agent? In my opinion it is an agent that recognizes the value of a customer, is found in a long term relationship rather than a quick, one time, sale to get a few more dollars in commission. An insurance agent makes between 5-10% of your premium. if you spend $1000, your agent makes $100. they need you to stay around for a while to make any real money
A great insurance agent can keep you out of some pretty hot water, and help you find the right coverage. If you’re in AZ I highly recommend calling Jennifer Coak with AAA of Arizona (602)285-6251 for your insurance. If you’re looking for a great realtor, Please call me. Visit my website at www.CailySellsAZ.com
Categories: Real Estate
I don’t really consider myself a “foodie” per say, I do not have the refined gourmet sense about me, rather I am more food obsessed. I don’t take bites picking apart the subtle nuances of gourmet spices and cooking methods. I live for the bites that make me clap my hands and giggle with excitement over their deliciousness. I have more than just a few times, been so giddy over my meal or dessert (often dessert) that the tables near me inquire and order their own. I love food, I am serious about it, and I simply won’t bother if it doesn’t taste good. In my quest I have had some outstanding meals at some pretty awesome places in the greater Phoenix area. I’m sharing with you, but don’t tell anyone else, we don’t want the lines getting any longer. ( Yea right, haha!)
1. Little Miss BBQ – I waited in line for 30 minutes, just yesterday to have this miracle of BBQ. Don’t tell me you don’t like barbeque, I don’t hear you, and until you’ve tried this place, you can’t be sure. The Fatty Brisket ( I can’t believe I had to type fatty) left me speechless, it is incredible. You need to know the brisket usually sells out before 2, so if you think you’re going to try it, you better get there early. This is no saucy BBQ joint, there is sauce if you need it, but their food sings on it’s own. I’ve had the pulled pork sandwich ( Scott the owner was visibly disappointed when I chose this over the brisket, but he didn’t know my lunch mate would literally order one of everything, so I was set) turkey, sausage and all of their sides, and just wow, every time. It’s teeny tiny and only open for like 10 min a day (11am – 4pm Tuesday through Saturday), the owners and their family make you feel welcome from your first moment in their line. We even got a smoker tour on this last visit. This is a hidden Phoenix gem, and I am in love. http://www.littlemissbbq.com/
2. Snooze – 3 words, Breakfast Pot Pie. You don’t know, there aren’t words, changed my life. This is literally the best thing I’ve ever eaten for breakfast. ever. That title used to belong to a fantastic little dive in San Francisco, who makes a dish called the Taylor Street Scramble, but now the champion has been over thrown. Last time I had the pot pie, I sold the tables on both sides of me on it, it’s that good. (Unless Flaky crust, and delicious sauce aren’t your thing) Next best, their pancake flight. That’s right, a pancake flight. Three pancakes off their menu of your choosing, it should be illegal. I’m talking Pineapple Upside Down Pancakes (sooooo good) Peanut Butter Chocolate pancakes, Sweet Potato Pancakes ( I don’t even like sweet potatoes, but dang I love these). I highly recommend, with two AZ locations, Phoenix and Tempe. The wait can be a bit long and they don’t take reservations, but you should try it once, and then never again so it’s not too crowded. Don’t be part of the problem. 🙂 http://snoozeeatery.com/locations/town-country/
3. Coconuts Fish Café – I don’t really want you to know about this place, but sharing is caring and all that. Fish Taco fans, these are your people. This ultra casual North Scottsdale eatery serves up the freshest, tastiest fish I have ever had in the land locked state where fish consumption could be a gamble. Oh my the fish tacos. Like a party in my mouth with a mango chutney and an extravaganza of delectable flavors. They are enormous and they come two per order, so if you’re dorky like me, you’ll end up needing a knife and fork too. If fish isn’t your thing, I also love the steak tacos, absolutely delicious. There are currently only two locations, one here in AZ, the other in Hawaii. Save the airfare, take the drive to Scottsdale, and try these. It’s cool too if you don’t, shorter lines for me. http://www.coconutsfishcafe.com/home
4. DeFalco’s Italian Eatery and Grocery – This South Scottsdale restaurant/deli is certainly no secret but man oh man is it good!! I have literally been dreaming about my next opportunity to have their meat ravioli. I grew up in an Italian family, my whole childhood is stuffed with amazing Italian meals, and I am going to tell you, this is one of the most delicious dishes I have ever had. (Shhh, that’s just between us) It is perfect in every way, the pasta surrounding the meat is the ideal tender blanket for a filling so good, I had to take a minute to sigh into food heaven happiness. The pizza is also just OUTSTANDING! Crisp buttery crust, fresh flavorful toppings, so good. My only regret is that the last time I was there, I was leaving on an early flight the next morning, and couldn’t eat my leftovers. I mourned that situation, just ask the folks seated in 17 B and C. http://defalcosdeli.com/about.html
5. Tommy Bahama – I know what you’re thinking, they make over priced shirts right? Oh but wait, in a few of their fancy pants stores around the country, there is a fancy pants restaurant attached. You’re thinking it’s cheesy right? It’s not. It’s like a mini vacation for your soul. Located in North Scottsdale, at Kierland, go sit on the patio on a beautiful evening and listen to the steel drums play as your sip your (kinda pricey) tropical cocktail (Coconut Cloud Martini for me) and tell me I’m wrong. You won’t, unless you’re grouchy, because it’s pretty awesome. The food is always fresh and flavorful, I love their tortilla soup and most of their appetizers, but it’s not about the entrée for me. It’s about dessert. I make it a rule to order dessert here first, and it’s worth it. My favorite? The Pineapple Crème Brule. This (and Del Frisco’s coconut cream pie but that’s another post) is what will be served in heaven by tiny cherubs. I think I heard the angels sing with my first bite, and every bite thereafter. Served in a pineapple with a perfect crisp sugar crust, I think it could aid in creating world peace. Did I mention I really love it? http://www.tommybahama.com/TBG/Stores_Restaurants/Scottsdale.jsp
Those are just a few of my favorites, I’d love to hear about yours!
Categories: It's Local