The Abcs of Real Estate
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Quiz 38:Financing
Quiz 38:Financing 1. An FHA-insured mortgage loan would be obtained from which of the following? a. The Federal Housing Administration b. The Department of Housing and Urban Development c. Any FHA-approved lending institution d. Any FHA-approved insuring institution 2. Fannie Mae a. makes FHA loans. c. services FHA loans. b. buys FHA loans. d. insures FHA loans. 3. The grantor becomes the lessee and the grantee becomes the lessor under which of the following financing arrangements? a. Partial sale c. Sale and leaseback b. Wraparound mortgage d. Assumption of mortgage 4. Members of which of the following pairs of terms are synonyms? a. Interim financing and construction loan b. Construction loan and passthrough loan c. Pass-through loan and takeout loan d. Takeout loan and construction loan 5. The type of real estate loan that allows the lender to increase the outstanding balance of a loan up to the original sum in the note while advancing additional funds is the a. wraparound mortgage. c. growing-equity mortgage. b. open-end mortgage. d. graduated-payment mortgage. 6. Richie has been making regular principal and interest payments on his mortgage, but the final payment will be larger than the others. This is a (n) a. balloon payment loan c. FHA loan b. fully amortized loan d. straight loan. 7. A mortgage broker generally offers which of the following services? a. Handling the escrow procedures b. Bringing the borrower and the lender together c. Providing credit qualification and evaluation reports d. Granting real estate loans using investor funds 8. -
The Tax Consequences of Wraparound Mortgages
Journal of Civil Rights and Economic Development Volume 2 Issue 2 Volume 2, 1987, Issue 2 Article 4 The Tax Consequences of Wraparound Mortgages Robert Liquerman Diane Di Franco Follow this and additional works at: https://scholarship.law.stjohns.edu/jcred This Comment is brought to you for free and open access by the Journals at St. John's Law Scholarship Repository. It has been accepted for inclusion in Journal of Civil Rights and Economic Development by an authorized editor of St. John's Law Scholarship Repository. For more information, please contact [email protected]. THE TAX CONSEQUENCES OF WRAPAROUND MORTGAGES Often in a sale of real property, the seller may elect to receive payment in installments, thereby providing the buyer with con- venient financing while securing for himself desirable tax advan- tages.1 The installment method of reporting allows a taxpayer who is to receive at least one payment after the year of a disposi- ' See I.R.C. § 453 (1982 & Supp. 1984). This section, which contains rules for reporting income under the installment method, provides in pertinent part: (b) Installment sale defined. - For purposes of this section- (1) In general. - The term "installment sale" means a disposition of property where at least I payment is to be received after the close of the taxable year in which the dispo- sition occurs. (c) Installment method defined. - For purposes of this section, the term "installment method" means a method under which the income recognized for any taxable year from a disposition is that proportion of the payments received in that year which the gross profit (realized or to be realized when payment is completed) bears to the total con- tract price. -
Mortgage Record Changes
Single Family FHA Single Family Servicing > Mortgage Record Changes Mortgage Record Changes The Mortgage Record Changes menu on the FHA Connection provides options for reporting a change in an FHA case to HUD, including a servicer and/or holder change, mortgage assumption (borrower change), FHA mortgage insurance termination, discontinuance of monthly mortgage insurance premium payments, or loan modification. Changes are made immediately and can be verified using Lender Query by Case Number. (For further information, see the Lender Query by Case Number module of this FHA Connection Guide.) To report a change or undo a change reported in error, see Contacts for Changes to FHA Insured Case Data on the HUD.GOV website at: https://www.hud.gov/program_offices/housing/comp/premiums/sfdqrep. Note: Lenders can also report changes through Electronic Data Interchange (EDI) or FHA Connection Business to Government (FHAC B2G). This FHA Connection Guide module includes: • Getting to the Mortgage Record Changes Menu • Reporting a Servicer and/or Holder Change (Transfer) • Reporting a Mortgage Assumption (Borrower Change) • Terminating FHA Mortgage Insurance • Discontinuing Monthly Premium Payments • Reporting a Non-incentivized Loan Modification Getting to the Mortgage Record Changes Menu To get to the Mortgage Record Changes menu (Figure 1), sign on to the FHA Connection and follow this menu path: Single Family FHA > Single Family Servicing > Mortgage Record Changes. Figure 1: Mortgage Record Changes menu Updated: 10/2017 Mortgage Record Changes - 1 Single Family FHA Single Family Servicing > Mortgage Record Changes After selecting a menu item, Help is available by clicking in the upper right corner of the page displayed (Figure 2). -
Housing Counseling 101 for the Homeowner Who Wants to Know More
Housing Counseling 101 For the homeowner who wants to know more Community Education Series Options in Foreclosure MSU is an affirmative-action, equal-opportunity employer. OPTIONS IN FORECLOSURE Washtenaw County MSUE Mortgage Foreclosure Intervention Program (734) 222-9595 The Michigan State University Extension Mortgage Foreclosure Intervention Program works in partnership with the Washtenaw County Treasurer‟s Office, Housing Bureau for Seniors, and Legal Services of South Central Michigan. We provide mortgage foreclosure intervention counseling to help homeowners sort through options available to resolve a housing crisis. The following pages provide an overview of important information for homeowners struggling with a mortgage crisis. Where are You in the Foreclosure Time Line?..…………..2 Keeping Your Home……………………………………….3 How Do I Write a Hardship Letter?.……………………….8 When You Can‟t Keep Your Home………………………..9 Let Foreclosure Happen…………………………………..12 Life After Foreclosure…………………………………….13 Options After the Sheriff‟s Sale…………………………..14 Additional Information about Sheriff‟s Sales…………….16 Mortgage Forgiveness Debt Relief Act of 2007………….18 Cancellation of Debt 1099-c……………………………...18 Consumer Alert: Scams…………………………………..19 Referrals…………………………………………………..21 The Mortgage Foreclosure Intervention Program is available to meet with homeowners face to face in our office on Zeeb Road. Please call 734-222-9595 to schedule an appointment. Pamela Sarlitto Certified Housing Counselor Program Services Foreclosure Intervention Counseling Community Education Presentations Workshops and Seminars on Topics of Financial Literacy 1 MSU is an affirmative-action, equal-opportunity employer. Last Updated January 2012 OPTIONS IN FORECLOSURE Washtenaw County MSUE Mortgage Foreclosure Intervention Program (734) 222-9595 Section I: WHERE ARE YOU IN THE FORECLOSURE TIMELINE? When facing foreclosure, you can keep the house, sell the house, or allow the foreclosure to proceed. -
Get a Glossary of Terms Used in the Title Industry
GLOSSARY A Abstract Plant – A geographically arranged abstract plant, currently kept to date, that is adequate for use in insuring titles, so as to provide for the safety and protection of the policyholders. An abstract plant as further defined in Rule P-12 and as further provided for in the Insurance Code, Chapter 2501.003 and Chapter 2502, must include an abstract plant for each county in which a title insurance agent or direct operation maintains an office. Abstract of Title - A compilation of all the recorded documents relating to a parcel of land. Usually kept by the land owner and used as the basis for an attorney as to the condition of title. Still in use in some states, and in some areas of Texas, but mostly replaced by issuance of title insurance. Abstract of Judgment – A lien created by a statutory filing of a court judgment in the real property records. This lien, commonly referred to as an AJ (in Texas), attaches to all non- exempt real property of the person or entity that the judgment was against. Acceleration Clause (in a mortgage) – Specifies conditions under which the lender may advance the time when the entire debt which is secured by the mortgage becomes due. For example, most mortgages contain provisions that the note shall become due immediately upon the sale of the securing land without the lender's consent or upon failure of the landowner to pay an installment when due. Access – The right to enter and leave a tract of land from a public way. Can include the right to enter and leave over the lands of another. -
Chapter 11: Property and Conveyancing Cornelius J
Annual Survey of Massachusetts Law Volume 1957 Article 15 1-1-1957 Chapter 11: Property and Conveyancing Cornelius J. Moynihan Follow this and additional works at: http://lawdigitalcommons.bc.edu/asml Part of the Property Law and Real Estate Commons Recommended Citation Moynihan, Cornelius J. (1957) "Chapter 11: Property and Conveyancing," Annual Survey of Massachusetts aL w: Vol. 1957, Article 15. Moynihan: Chapter 11: Property and Conveyancing PART II Private Law CHAPTER 11 Property and Conveyancing CORNELIUS J. MOYNIHAN A. REAL PROPERTY §ll.l. Landlord and tenant. The exercise of an option to renew a lease appears to be a relatively simple matter to the ordinary business man but, as lawyers well know, a carelessly drafted notice of renewal can be the prelude to costly litigation. The case of Ames v. B. C. Ames CO.l affords a good example. On April 1, 1946 the defendant leased certain business premises to the plaintiff for a term of ten years with the option to renew for a further term of ten years provided that written notice was given to the lessor at least six months prior to the expiration of the term, the renewal rental to be agreed upon by the parties or determined by arbitration but in no event to be less than $4800 a year. The lease contained the standard clause prohibiting assignment or subletting by the lessee without the written consent of the lessor, but concurrently with the execution of the lease the lessor agreed in writing to assent to an assignment to a corporation "owned and operated by" the lessee. -
Transfer of Ownership Guidelines
Transfer of Ownership Guidelines PREPARED BY THE MICHIGAN STATE TAX COMMISSION Issued October 30, 2017 TABLE OF CONTENTS Background Information 3 Transfer of Ownership Definitions 4 Deeds and Land Contracts 4 Trusts 5 Distributions Under Wills or By Courts 8 Leases 10 Ownership Changes of Legal Entities (Corporations, Partnerships, Limited Liability Companies, etc.) 11 Tenancies in Common 12 Cooperative Housing Corporations 13 Transfer of Ownership Exemptions 13 Spouses 14 Children and Other Relatives 15 Tenancies by the Entireties 18 Life Leases/Life Estates 19 Foreclosures and Forfeitures 23 Redemptions of Tax-Reverted Properties 24 Trusts 25 Court Orders 26 Joint Tenancies 27 Security Interests 33 Affiliated Groups 34 Normal Public Trades 35 Commonly Controlled Entities 35 Tax-Free Reorganizations 37 Qualified Agricultural Properties 38 Conservation Easements 41 Boy Scout, Girl Scout, Camp Fire Girls 4-H Clubs or Foundations, YMCA and YWCA 42 Property Transfer Affidavits 42 Partial Uncapping Situations 45 Delayed Uncappings 46 Background Information Why is a transfer of ownership significant with regard to property taxes? In accordance with the Michigan Constitution as amended by Michigan statutes, a transfer of ownership causes the taxable value of the transferred property to be uncapped in the calendar year following the year of the transfer of ownership. What is meant by “taxable value”? Taxable value is the value used to calculate the property taxes for a property. In general, the taxable value multiplied by the appropriate millage rate yields the property taxes for a property. What is meant by “taxable value uncapping”? Except for additions and losses to a property, annual increases in the property’s taxable value are limited to 1.05 or the inflation rate, whichever is less. -
Going National with HERS and Eems: Issues and Impacts
March 1992 • NREL/TP-261-4706 Going National with HERS and EEMs: Issues and Impacts The Collected Papers of the National Collaborative National Collaborative on Home Energy Rating Systems Mortgage and Incentives for Energy Efficiency . J J l . j �*� •'¥ ··���=· -- National Renewable Energy Laboratory 1617 Cole Boulevard Golden, Colorado 80401-3393 .J) A national laboratory of the U.S. Department of Energy Managed by Midwest Research Institute for the U.S. Department of Energy under Contract No. DE-AC02-83CH10093 J j 261-4706 • UC Category: 350 • DE92001220 Going National HERS and EEMs: Issues an Impacts The Collected Pap of the National Collab National Collaborative on Home Energy Rating Systems Mortgage and Incentives for Energy Efficiency 1617 Cole Boulevard Golden, Colorado 80401-3393 A national laboratory of the U.S. Department of Energy Managed by Midwest Research Institute for the U.S. Department of Energy under Contract No. DE-AC02-83CH10093 Prepared under Task No. AS135440 March 1992 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does riot necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. -
Law and Economics of Leases
Preliminary draft; do not cite without permission THE ECONOMICS AND LAW OF LEASING Thomas W. Merrill* This paper is about a widespread and highly successful economic institution that has been largely ignored in both economic and legal literature: leasing. A lease is a transfer of an asset for a limited time in return for periodic payments called rent. Leases are used to acquire a very wide variety of assets. Resources that are commonly leased include agricultural land, mineral and timber rights, commercial office buildings, shopping centers, industrial and commercial equipment such as ships, aircraft, machinery and computers, residences including both freestanding houses and apartments, autos and other motor vehicles, and furniture, among other things. Other than ownership, leases are probably the most common legal form of holding assets throughout the world. Although comprehensive data about leasing are not available, a brief glance at such data as exist confirms the very high frequency with which leasing is used, both in the U.S. and in other developed economies. A large percentage of households lease the dwelling in which they live, and the percentage leasing rather than owning has increased since the recession of 2007- 08. In the first quarter of 2017, the United States Census Bureau reported that 32 percent of housing units were occupied by persons who lease, as opposed to own or live in units with others. In Europe, the percentages are generally similar, although in Germany and Switzerland roughly half the population live in leased dwellings. Leases of personal property are also surprisingly pervasive. By one estimate, leases account for more than twenty-five percent of all new capital equipment in the U.S., and approximately 80 percent of all U.S. -
Options in Foreclosure
OPTIONS IN FORECLOSURE Washtenaw County MSUE Mortgage Foreclosure Intervention Program (734) 222-9595 Section IV: WHEN YOU CAN’T KEEP YOUR HOME A mortgage crisis can be a stressful time during which many decisions must be made by the homeowner. When the homeowner avoids dealing with the crisis, it can mean a loss of control over their finances and a loss of control over the impact the mortgage crisis may have on their credit report. If it is determined that you can’t keep your home after a review of your finances and conversations with your lender and housing counselor, there are still options available to you to AVOID a foreclosure on your credit report. I. STRAIGHT SALE: Even in a bad housing market, put the house up for sale with a reputable realtor at a fair market price. Interview the realtor to be sure they have experience with foreclosures and short sales. 1. Ask the lender to delay the foreclosure and for permission to complete a pre-sale. GET THE AGREEMENT IN WRITING. 2. In a bad real estate market, do not assume that the house will sell quickly. 3. A pre-sale works if the sale price is high enough to pay off the mortgage, any home equity loans, back taxes, selling expenses, and foreclosure fees. II. SHORT SALE: The lender may allow you to complete a sale even though the price is less than what you owe them. Most servicers will accept a request to short sell the home but will reserve the right to finalize the agreement until a signed purchase agreement has been submitted. -
The Economics of Leasing
Columbia Law School Scholarship Archive Faculty Scholarship Faculty Publications 2020 The Economics of Leasing Thomas W. Merrill Columbia Law School, [email protected] Follow this and additional works at: https://scholarship.law.columbia.edu/faculty_scholarship Part of the Common Law Commons, Contracts Commons, and the State and Local Government Law Commons Recommended Citation Thomas W. Merrill, The Economics of Leasing, JOURNAL OF LEGAL ANALYSIS, VOL. 12, P. 221, 2020; COLUMBIA UNIVERSITY SCHOOL OF LAW, THE CENTER FOR LAW & ECONOMIC STUDIES WORKING PAPER NO. 628 (2020). Available at: https://scholarship.law.columbia.edu/faculty_scholarship/2709 This Working Paper is brought to you for free and open access by the Faculty Publications at Scholarship Archive. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of Scholarship Archive. For more information, please contact [email protected]. The Center for Law and Economic Studies Columbia University School of Law 435 West 116th Street New York, NY 10027-7201 (212) 854-3739 The Economics of Leasing Prof. Thomas Merrill Working Paper No. 628 Sept 15, 2020 Do not quote or cite without author’s permission. An index to the working papers in the Columbia Law School Working Paper Series is located at https://law-economic-studies.law.columbia.edu/content/working-papers Electronic copy available at: https://ssrn.com/abstract=3701199 THE ECONOMICS OF LEASING Thomas W. Merrill* 2020 September 15 on guest by https://academic.oup.com/jla/article/doi/10.1093/jla/laaa003/5904227 from Downloaded ABSTRACT Leasing may be the most important legal institution that has received virtually no sys- tematic scholarly attention. -
Cattaraugus County Purchase Offer
PARTIES TO THE CONTRACT Purchase Price: $____________________ Listing Number _______________ Property Address: _________________________________________________________ Seller _____________________________ Buyer_________________________ Seller _____________________________ Buyer_________________________ Address___________________________ Address ______________________ City, State _________________________ City, State_____________________ Zip_______________________________ Zip___________________________ Home Phone _______________________ Home Phone ___________________ Work Phone________________________ Work Phone ___________________ Email _____________________________ Email_________________________ Attorney __________________________ Attorney ______________________ Address___________________________ Address ______________________ City, State _________________________ City, State _____________________ Zip __________Phone________________ Zip _______ Phone______________ Fax _______________________________ Fax __________________________ Email ______________________________ Email_________________________ Listing Broker ______________________ Selling Broker ____________________ Listing Agent _______________________ Selling Agent _____________________ License # __________________________ License # ________________________ Address ___________________________ Address__________________________ City, State___________________________ City, State________________________ Zip___________ Phone_______________ Zip___________ Phone_____________ Email______________________________