Monday Primer: Affidavit Of Heirship

Question:
What do you do with a seller who inherits a piece of property from an owner who died intestate (without leaving a will) and needs to show good title to the property so that she can sell it?

Answer:
She will need to arrange to have an Affidavit of Heirship recorded in the office where deeds are recorded.  Requirements for an Affidavit of Heirship vary from state to state, so she needs to consult an attorney in her jurisdiction.  In general though, this is what she should expect...
First Things First: Did She Actually Inherit The Property:
If she was the only child of a widowed owner, it's easy to ascertain that she was the heir, but if there were other relatives such as a spouse or other children, she needs to check the rules of intestate succession in her state to find out who inherits in the event that a person dies intestate.  If anyone other than her has an interest in the estate, she'll need them to sign off on the sale as well.
Who Should Sign The Affidavit:
Assuming that succession is in order, she needs to find someone to execute the affidavit.  In many states she will actually need two signers.  Both witnesses need to be people who had knowledge of the deceased and can attest to the date of his death and to who he left behind.  The witnesses must also be people who did not have an personal interest in the property.
What Should Be In The Affidavit:
The affidavit should have the name of the deceased, the date of death, and the heirs left behind.  It should include a statement attesting that the witness has no interest in the property.  All of this should be done in front of a notary.
Last Step:
The final step in this process is recording the affidavit in the office in her county where deeds are recorded.

We Keep Hearing That Mortgage Rates Have Hit Rock Bottom

...but they keep dropping lower.  30 year fixed rate mortgages averaged 3.49% last week.  15 year mortgages came in at 2.83%.

via HousingWire

Data Retrieval Services Scam

If you buy a house, it is important to have for your records a copy of your recorded deed.  I tell this to buyers who come through my office.  What I usually don't tell them is that the county where your deed is recorded can provide you with a copy of your recorded deed for a nominal printing fee.  Usually around $3.

I'm going to have to start telling buyers that because today a former purchaser came into my office with an advertisement she had received.  It was designed to look like a bill and was offering to obtain publicly available records for her for the cost of $87.00.  I'm glad she came to me instead of just sending them a check. for services she did not need (she still had her original deed) and could have been provided much cheaper at the county courthouse if she did need them.

I should note that this ad does contain a line explaining "Secured Document Services is not affiliated with the county in which your deed is filed in, nor affiliated with any government agencies.  This offer serves as a solicitation for services and not to be interpreted as a bill due."  What this company is doing is not illegal, just infuriating.

ProTip: Things that are actually sent from Montgomery County don't usually look this slick.

HUD May Open 203(k) Loans To Investors

The Sarasota Herald-Tribune is reporting that HUD may consider opening FHA insured 203(k) loans to investors.

According to mortgageorb.com, the 1996 moratorium on investors obtaining 203(k) loans may be lifted. "HUD Secretary Shaun Donovan is on the record saying that the FHA intends to reopen the program to investors," the online newsletter wrote.Additionally, the article quotes a Federal Housing Administration spokesman as saying FHA is "currently evaluating options for reopening the 203k program to investors" and "It just seems to be a win-win on many levels."

The program allows an purchaser to obtain an FHA insured loan on properties requiring over $5,000 of renovations to meet insurability standards. Currently this loan structure is only available to owner-occupant buyers.  Opening this up to investors could help revitalize the sagging housing market.

Google+ Hangout With HUD

If you have any questions about refinancing, on Thursday you'll be able to ask the man himself.  Zillow has announced that they are joining with Shaun Donovan, the Secretary of Housing and Urban Development to host a Google+ Hangout to answer homeowner questions about refinancing.  The Hangout can be streamed at whitehouse.gov/live and will begin at 3:15 EST.

A Note About Dual Tracking

One of the practices California is limiting with their new homeowner's bill of rights is the practice of dual tracking.  When a lender is dual tracking, it means that one department is pursuing loan modifications with the owner while another department moves ahead with foreclosure procedures.  Particularly insidious is when a bank informs an owner that a loan modification cannot be granted unless the owner is 90 days behind on payment.  When pursuing a loan modification it is wise to be wary of any suggestion to suspend mortgage payments.

California Passes Legislation To Protect Homeowners Facing Foreclosure

A bill in California has just been passed that proposes protections for homeowners against some of the questionable lender practices that have come to national attention in recent years.

The legislation would make California the first state to prohibit lenders from "dual tracking," the practice of negotiating with clients to modify a mortgage so that payments become more affordable while simultaneously pursuing foreclosure. In such cases, homeowners can wind up being evicted even though they had been working with the bank to modify their loans.

The measures would outlaw so-called robo-signing — the improper or faulty processing of foreclosure documents— and would allow state agencies and private citizens to sue financial institutions, under limited conditions, for economic compensation and for additional civil damages of up to $50,000 if lenders willfully, intentionally or recklessly violate the law. No lawsuit could go forward if the bank or servicer first fixes the problem with documentation or procedures, according to the bills.

Critics of the legislation claim that the new laws are complex, ambiguous, and will slow the tenuous recovery of the housing market.

via The Los Angeles Times

Abandoned Village For Sale On eBay

It looks like a bit of a fixer-upper, but if you have $3 million sitting around, you could own this Italian village.

via SFLuxe

Image via eBay listing