Showing posts from May, 2022

Digital Real Estate Closings are Here- Safe, Secure and Convenient

 No more pencils,no more books, no more Title Agent's dirty looks!! The Real Estate industry in Florida has finally (well sorta) left the dark ages behind and moved into the new secure digital age. I say "sorta" because not every lender has put down their abacus and slide rule to pick up a laptop. Ginnie Mae has started a pilot program to accept electronically signed Notes, while Freddie Mac and Fannie Mae are also considering the adoption and acceptance of electronically signed closing packets and e-mortgages. The future is upon us and before too long, the digital closing or "e-closing" will be the gold standard way of conducting a real estate closing for both buyers and sellers The American Land Title Association (ALTA) conducted a survey of more than 800 respondents in the title industry. It was discovered that 11% of the title professionals surveyed have conducted an e-closings and 19% have started making preparations by researching e-closings, applicable la

The Cheeseburger and the Realtor: Why FOR SALE BUY OWNER is sometimes the better option when selling your home

 Those who know me, know that I love a good cheeseburger. It may be from my years growing up on the water listening to hour upon hour of Jimmy Buffett music. The idea of a good cheeseburger has perhaps subliminally found its way into my DNA. Or maybe it is my 12 year old taste buds that never grew up. Whatever the excuse, I love and appreciate a good cheeseburger. Like a good cheeseburger, I also love and appreciate a good Realtor. Sadly, I have experienced my share of awful cheeseburgers and awful Realtor alike. That is OK, because without the bad ones, we would never know just how appreciative we are of the good ones.  So, enough about the Cheeseburgers, it is making me hungry. I wanna talk about Realtors. As a real estate attorney, I love working with a good Realtor. A good Realtor makes my job very enjoyable and most times a good Realtor adds more value to a transaction than the cost of their commissions. A good Realtor knows just the right light and just the right angle for thos

Predatory Mortgage Lending 2.0 (Larry versus Abe)

Here we go again! (Sort of). Let me start by saying I am only seeing this particular "predatory" lending practice on the new purchase, not the refinance lending.   During 2007-2010 we experienced the Subprime Mortgage crisis, fueled, in part, by bank greed and a large decline in U.S. home prices. When the average U.S. home price declined, it became more difficult for borrowers to refinance their loans. As adjustable-rate mortgages began to reset at higher interest rates, home owners felt the pinch to their wallets as their monthly mortgage payments increased. Many fell behind on their monthly mortgage payments and the foreclosures began. If you haven't already watched it, "The Big Short" it a great movie that came out in 2015 which explains this dark time in our countries history and the culpability on the part of the banks.  No, I do not foresee another Great Recession of the magnitude we experienced 10 years ago, (at least not yet) but I do see the banks, loan

Two types of Title Insurance Policies

Yes, there are two types of Title Insurance Policies. Don't get confused, both policies offer the same type of coverage, the insured party is just different. The two types of policies are  Owner’s Policies and Lender Policies.  The Owner’s Title Insurance (an Owner’s Policy), protects the buyer, and Lender Title Insurance (a Mortgagee Policy), protects the lender. In a typical residential transaction, the title insurance often required by the mortgage lender will not safeguard the rights and interests of the home buyer; therefore, a separate Owner’s Policy is necessary. An Owner’s Policy is typically issued in the amount of the real estate purchase price and remains in effect for as long as the owner, or his or her heirs, retains an interest in the property. In addition to identifying risk before a transaction is completed, the Owner’s Policy will pay valid claims and all defense costs against attacks on the title. A Mortgagee Policy assures the lender of the validity, priority and

Selling or refinancing your home in Florida: How can I save money on my Title Insurance?

Title insurance rates in Florida are set by state statute. This means that the rate for title insurance is standardized throughout the state. The rates will be the same whether you close with a real estate attorney or a non-attorney title company. According to state statute the cost of title insurance is $5.75 per $1,000 of the amount of the insured amount up to $100,000. Any purchase amount above $100,000 is charged at $5.00 per $1,000. Fortunately for consumers, title insurers and state regulators have created ways to earn discounts on these promulgated rates. REISSUE RATE a.k.a. “REISSUE CREDIT” The most common title insurance discount is the Reissue Rate. You may also hear it referred to as Reissue Credit. Reissue rate can result in a rather substantial discount for purchasers of title insurance. But before we get to the amount of the discount, let’s discuss what is required to qualify for it. First you must PRESENT YOUR PRIOR OWNER’S TITLE POLICY FOR A DISCOUNT. The primary requir

Why you should use a Real Estate Attorney while buying or selling property in Florida.

  If you’re getting ready to buy or sell a property in Florida, there’s a lot to keep track of. While it would be nice to think you could offer a price on a home, it would be accepted and everything would be clear sailing throughout the entire transaction, that’s hardly ever the case. After all, buying a home is a major life event.  For most people, their home is the most expensive purchase they’ll ever make. That means it’s important to take extra care to ensure the property you’re buying is free and clear of liens and “encumbrances” that could transfer over to you as the new owner. And having a title search done by someone with experience, and having a title insurance policy issued, is the only way to do just that. Title insurance plays an important role in the real estate buying process, ensuring the property you’re purchasing and its title are yours free and clear. Getting title insurance begins with a thorough search of the property’s records to ferret out any liens against it. Un