YES, WE CAN LEARN FROM THE McCOURT LAWSUIT! You thought it was just shenanigans and posturing for the amusement of the public and the media, right? No, we can actually learn something very, very important from the McCourts’ divorce and their claims of ownership over the LA Dodgers. First and foremost, this is all about California being a community property state, which means that what happens in a marriage stays in a marriage. What is mine may be my husband’s and what is his could also be mine. A spouse can claim interest in a property acquired after marriage. That means that in a transaction in which one party is seeking to buy or sell as a “married person as his/her sole and separate property”, he/she will need to wrangle a Deed from the spouse to relinquish any community property interest the spouse may have. This can be a problem, of course. What self respecting spouse is willing to give up their interest without sufficient good reason? But if we don’t get it, who knows what the spouse will claim 5 years down the road? Will that spouse go back to the title insurance company and put in a monetary claim for closing without having his/her interest reflected? Here are some examples of what we have encountered:
- Divorce is still pending (sorry, you are still married until it’s finalized in court)
- From Buyer who doesn’t want to buy with spouse because he/she is not in the country (but, hey, one day he/she may be!)
- From Seller who says he is “divorced” or “unmarried” (really?), or
- From Seller who is really divorced but never got the ex to sign the deed (shame on the attorney!)
Boy, do we hate having to beg for the Quitclaim Deed. People get angry at us. But the law is the law and we don’t want to end up in the trial court with attorneys in tow. Ask the McCourts!
REFINANCE CLOSING COSTS: With rates at an all time low, is it worth it to refi again when you did so 2-3 months ago? This is how I look at it:
- Only refinance for the amount of your existing unpaid balance.
- Find a Lender or Loan Broker who is willing to pay all the closing costs (“no cost” loan).
- Find a rate that is at least .50% less than what you have now so that your new monthly payment should be about $30.00 per $100,000 less.
If you can’t get #2 or find that #2 affects #3, then figure that closing costs in a refinance are approximately .70% – 1.0% of the loan amount, not including interest, taxes or insurance that have to be paid. If the amount of savings on your new monthly payment can payoff the closing costs you shell out in 3 years, then I think it is worth your while.
When considering a refinance, give some thought to this:
- Consider paying down your principal at the time instead of increasing
- Consider getting a loan for 15 years or 10 years instead of 30 years (those rates are fantastic!)
- Even if you get a “no cost” loan you will still need to pay interest on the old loan, the new loan and the property taxes due at closing. Be sure you factor those amounts in.
- Whatever rate you see quoted on the websites, in ads, or flyers, those are just “teaser” rates. The real rate you may get is when your particular loan is locked in specifically for you, AND
- If the underwriting process takes longer than anticipated, your locked in rate may need to be extended, which may require you to pay more points to keep the same rate.
REGISTERING A FORECLOSURE WITH THE CITY OF LOS ANGELES! How did they sneak this in?? L.A. City Ordinance 181185 has declared that a foreclosing Lender has 10 days to register with the City’s Housing Department at an annual cost of $150.00 (or with MERS – the Mortgage Electronic Registration System – at no cost) when they file a Notice of Default on a property located in city limits or face a penalty of $250.00 PER DAY. The same ordinance also calls for the registering of the purchase and/or transfer of a loan to a new beneficiary/trustee, providing the name, address and contact information of the new Assignee. Violations of the ordinance are treated as strict liability offenses. This ordinance came into effect on July 8, 2010.
Can you see Wells Fargo, Chase, Bank of America, to name a few, tearing their hair out? Can you see another department being set up just to handle the foreclosure registration? Can other cities, which have been hit much harder, be far behind? What does this actually do besides generate revenue for the city coffers? How will the City police these foreclosures?
IT’S PROPERTY TAX TIME!!! The new fiscal year property taxes have been issued in all the counties as of this last week. They are due to be paid now if you are closing a refinance or sale escrow starting in October, or no later than December 10th if you are not. It adds to the closing costs, but you know…. death and taxes!
FOR THE ENVIRONMENTALLY CONSCIOUS:
- Plastics – are they safe? What do you look for? Are they microwavable? How long can I continue to reuse them? Click here.
- Alternative household cleansers – vinegar, baking soda, lemon juice. Yep, things you already have in your cabinets. Read on here.
- Recycling unusual household items – Can I dump VHS tapes, crayons and candle jars in my normal recycle bin without someone freaking out? This article has the answers.
- Bed Bugs – the 2010 horror story making all the newswires! How to prevent bringing them into your home, and what to do if you are unsuccessful! Sleep tight and don’t let those bed bugs bite. Advice can be found here.
SPEED TRAPS: It ain’t your father’s speed trap, that’s for sure! Technology is advancing for everyone, so why not speed traps? Gone are our father’s traps of human cops lurking behind the building (although there are still those). Today’s traps are automated with camera devices. They catch more people, issue more violations and generate much more income than that single cop sitting by the building ever could. And if it were that single cop, he would be armed with newfangled laser tag guns which can clock you to the millisecond and millimeter. Think you can argue your way out of that one? Maybe you can. One more thing this article does mention: fight it in court if you have a good defense.
OUT-OF-OFFICE REPLY: My Out Of Office Reply will be turned on for a short week and a half between October 13th and October 24th as I will be out of the country. I look forward to chatting with you after I come back, and hopefully, I won’t break my other foot this time around.
Will you consider a donation to the City of Hope? Our annual walk is happening again and we look forward to raising funds and walkers to Fight! Fight! Fight! My donation link is as follows: http://nationalevents.cityofhope.org/site/TR/Walk2010/WalkforHope?team_id=18901&pg=team&fr_id=1230 Click on “Join Team”.
“Storms make trees take deeper roots”
~Claude McDonald for The Christian Word~
Juliana Tu, CSEO, CEO, CBSS, CEI
Director, California Escrow Association
Commitment. Knowledge. Escrow.
Viva Escrow, Inc.
2549 Huntington Drive #103
San Marino, CA 91108
Direct Tel # (626) 744-1684
Direct Fax # (626) 744-1689
www.vivaescrow.com
