Title Agencies Minimizes Delays Pt. 1

In this fast-paced, quick, digital economy, delays need to be minimized to a great extent so that the buyer and seller are both satisfied, receiving what they expect and paying for what they want.

When the National Association of Realtors did a survey a few years back, they discovered that 32% of all real estate transactions counted experienced some form of a delay.

Of those delayed transactions, 46% of them were triggered by or the result of finance issues. Another issue that resulted in delays in real estate transactions was appraisal-related problems. Appraisal delays represented 21% of all delays, while home inspection issues accounted for only 14% of the delays.

Again, according to this National Association of Realtors survey, one out of every 16 deals fell through primarily through home inspection defects, financing problems or other issues.

Appraisal and financing issues are not the only deal breakers that are responsible for delays and failures of transactions. One of the big issues that delays a real estate closing is title issues.

Before the closing of a loan, purchase or refinance takes place, the public records are searched and examined to determine ownership, limitations to that ownership, encumbrances and any adverse matters affecting title to the property. These records are searched by examining the official courthouse records, where all recorded documents, judgments, liens, tax assessments (such as street or sewer), special taxes, and other matters, such as divorce and bankruptcy, are filed. The results of this examination will then be provided in a preliminary title report or “commitment” to insure the property. A title commitment is a binding contract which reflects the current status of title before a loan or sale is closed, and binds the title company to issue its title insurance in favor of the insured as owner or mortgagee of the property being searched, subject to certain conditions and stipulations.

Housing Trends – U.S. Rent Growth Continues

For August, U.S. multifamily rents stayed on course, adding $2 to July’s record high $1,412 nationwide average for the month, which represented a 3% year-over-year increase and was the seventh consecutive all-time high, according to a survey of 127 markets by Yardi® Matrix.    low angle view of building

Highlights from the report

■ Buoyed by the strong economy and continued healthy demand, average U.S. multifamily rents rose $2 in August to $1,412, up 3.1% year-over-year and 10 basis points from July. Rents have grown steadily all year, and have reached record highs seven months in a row.

■ The sector’s performance is highlighted by rising occupancy rates in the face of robust supply growth. Since January, the occupancy rate for stabilized properties has increased 25 basis points—particularly impressive, considering that 2018 is on pace for a third straight year of some 300,000 new units.

■ Growth continues to be led by metros in the South and West, which occupy the top nine spots in the ranking.

■ Rents increased 3.1% nationwide in August, as the multifamily industry maintains consistent growth. Fundamentals appear to be in balance, as moderate rent appreciation, steady occupancy rates and new deliveries are supported by strong demand for apartments.

■ Orlando (6.7%) once again led the top 30 metros on a year-over-year basis, while other popular retirement metros Las Vegas (5.7%), Phoenix (5.3%), and Tampa (4.8%), were also among the top performers. The Inland Empire (5.4%) ranked third overall, as Los Angeles residents continue to migrate eastward in search of more affordable housing.

Multifamily rents have grown steadily throughout 2018, buoyed by the strong economy and continued healthy demand. The 25-basis-point increase in the occupancy rate of stabilized properties since January is “particularly impressive, considering that 2018 is on pace for a third straight year of some 300,000 new units,” the report notes, adding, “The multifamily market … shows no signs of being at the end of its cycle.”

Experience and Professionalism Key to Avoid Closing Delays Pt. 2

If there are serious problems found in the chain of title, the title insurer will report those matters and also exclude them from coverage.

Through title search and research, it is often the case that a title will have previous liens and taxes that are owed. In some cases, this has been discovered after the purchase of the home.

The kind of problems that arise with a title usually involve issues with the estate, with liens, with ownership, erroneous public records, forgeries, survey or boundary line issues, unaccounted-for errors, unknown liens, unknown easements, undiscovered encumbrances, an undiscovered will and even false impersonation of a previous owner.

Sometimes they can be requests for additional documentation or additional repairs to be made that were not completed.

The Partial Checklist Includes:
■ Search provided in 2 to 3 days
■ Clear title
■ Have a dedicated closing professional available to answer questions
■ Ability to clear all title issues
■ Have all documentation necessary for closing in advance
■ Confirm disbursement of funds
■ Confirm dates and location of closing

Mortgage Delinquencies Climb After Storms

It was slightly prescient that on September 10th, CoreLogic posted on their website an article on the impact natural disasters have on delinquency rates in general.

The initial impact is felt way before the storm or disaster hits: if it is with housing stocks, they go lower. If it is with Home Depot or Lowe’s, they go higher. In any case, the impact upon the local and general economy is felt long after the event occurs. These catastrophic events have a significant impact not only upon the hard structures of communities such as houses, land, commercial buildings, highways and such, but they also have the effect of displacing people, families, students, workers and businesses. 

What is also felt and compounded by the emotional trauma of the storm or earthquake is the disruption to a family’s regular stream of income and payments. If a homeowner has a two-family house, they not only potentially have a loss of income from the job but also the lost of rental income from their tenant who is no longer able to occupy the premises. It is characterized by the word – disruption!

According to the CoreLogic post, after the 3 hurricanes hit the U.S. – Harvey, Irma and Maria – serious delinquency rates tripled. Wildfires in California also saw serious increases in delinquencies by over 50% of the current rate.

With the oncoming Hurricane Florence, there will be serious damage done; it will be catastrophic to some towns, and to lesser degrees events that will never be forgotten.

 

 

Hurricane Florence Down-Graded to CAT 1

The eyewall of Hurricane Florence is expected to make landfall in Wilmington, North Carolina about 7:15 EDT. Eyewall Hitting Coast Now: 10+ Feet of Water, 90+ MPH GustsThe storm will crawl very slowly, which is atypical for such large events with windspeeds exceeding 100 MPH. According to weather reports and the NOAA’s Storm Prediction Center there has been issued a tornado watch for parts of North Carolina until 5 p.m. EDT. Two USGS observation stations, located in Atlantic Beach and on Emerald Isle have reported about 20 inches of rainfall has already.
Water levels and storm surges are projected to rise to approximately 11 feet.

Hurricane Florence Downgraded

Hurricane Florence was downgraded to a Category 2 storm from what was originally a Category 4 storm. Timing For Landfall: Feet of Rain, Feet of Storm Surge, 100+ MPH Winds Expected

The exact strength of the storm as it makes landfall is yet to be determined. It is expected to reach the U.S. mainland and make a slight turn southward once it hits the Carolinas.

Many of the experts following its track, Florence will carry an enormous amount of rain that could prove to be more damaging that the winds. There is also the danger that comes from the storm surge, which is being calculated at 10 feet. These meteorologists are predicting a “major flooding event” including the possibility of significant mudslides.

Hurricane Florence is a slow-moving storm traveling at 12 mph that could bring up to 15 feet of water; its maximum sustained winds are measured at about 110 mph.

According to the National Hurricane Center, “On the forecast track, the center of Florence will approach the coasts of North and South Carolina later [Thursday], then move near or over the coast of southern North Carolina and eastern South Carolina in the hurricane warning area tonight and Friday. A slow motion over eastern South Carolina is forecast Friday night through Saturday night.”

Early Wednesday the storm was predicted to stall along the southeastern coast when it makes landfall Thursday. North Carolina, South Carolina and Georgia coasts could experience prolonged hurricane-force winds and rain.

This storm can easily represent a major flooding event to the North Carolina, South Carolina and Georgia coasts and inland.

Hurricane warnings are in effect for the South Santee River in South Carolina to Duck, North Carolina, and the Albemarle and Pamlico Sounds in North Carolina as well.  A hurricane watch has been issued for Edisto Beach, South Carolina, to the South Santee River.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

 

More Older Americans Going Broke

Sure, the economy is stronger than ever, and the real estate market is red-hot, but lifestyle may be forcing many older Americans to go bust, without additional revenue to support them.two men playing chess

This is appearing to be a growing problem. According to an article published by CNBC, “In the past decade, there’s been a steep increase in debt among households headed by someone age 75 and older.”

This is most likely one of the reasons why older Americans, grappling with mortgage and credit card debt, are resorting to such solutions as reverse mortgages.

This is based upon a study published this past August. The summary of the study states, “The social safety net for older Americans has been shrinking for the past couple decades. The risks associated with aging, reduced income and increased healthcare costs, have been off-loaded onto older individuals. At the same time, older Americans are increasingly likely to file consumer bankruptcy, and their representation among those in bankruptcy has never been higher.”*

The report also found “an almost five-fold increase in the percentage of older persons in the U.S. bankruptcy system.”*

The CNBC report stated, “In 2016, the average debt in families in which the head of the household is age 75 or older was $36,757. That is up from $30,288 in 2010, according to a recent report by the nonprofit Employee Benefit Research Institute in Washington.”

Still, the cost of living is continuing to rise, while monthly benefits for retired Americans has stagnated.

* Thorne, Deborah and Foohey, Pamela and Lawless, Robert M. and Porter, Katherine M., Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society (August 5, 2018). Available at SSRN: https://ssrn.com/abstract=3226574

Know Where You Put Your Title Policy

The excitement that comes right after the purchase of a home is immediately followed with those mega to-do lists that you want to do to make the property yours. The lists can be daunting, but two pieces of paper that you should secure in a safe place are your title deed and your title insurance policy.

The title policy is often and easily misplaced. These documents, the title, title insurance policy and the homeowners insurance should be kept together. In the likelihood of some claim or lien against the title of your property, the last thing that you want to worry about is the location of the title insurance policy.

The reason you want it handy is because in the case that someone says they own part of your property or money is owed or there are taxes due and so on, the title insurance company would be responsible to pay to clear your title to the property.

The policy goes into effect with the sale of the property and remains in full force and effect as long as you own your home.

So right now you should know where your title policy is. The title policy is given to you usually after the closing on the sale of your home, since that is when the title insurance policy premium is paid.

Typically the new owners will receive the title insurance policy in the mail a month or two after closing on your home.

The title policy typically has at least four pre-printed pages and two or three schedule pages, which include standard policy provisions, the legal description of the home and how it is titled, in addition to a listing of any liens, easements, restrictions or reservations of record. When you receive the policy, make sure that the names are spelled correctly and that the legal description is correct.

Without the protection of a title insurance policy, you are on your own. Without a title insurance policy you may be liable to foot the bill personally for all the legal fees or other costs that are necessary to make sure that the title to your home is clear.

It would be prudent to keep an original title insurance policy for every parcel of real estate currently owned or have sold within the past 15 years. If you are missing the policy, request a duplicate policy.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

Making Convention Connections Pt 2

Research the vendors and the individuals who will be presenting and attending the event.

■ Make your reservations at the facilities that are closest to the convention, if possible in the actual convention center.
■ See if you have a promotional giveaway to provide to those individuals and contacts that you meet.
■ Notify your network that you are attending the convention and insert the hyperlink to the convention.
■ If your company is going to be presenting, make sure a press release goes out at least 30 days before the actual event. In the case of the Triple Play Convention, remember that Thanksgiving immediately precedes the event, so people’s attention span may need at least one additional reminder.
■ In addition to a promotional giveaway, have collateral material that is reflective of the convention and possibly some of the actual events. If your company is presenting at the convention, make sure that the information provided is current.
■ Let’s not forget about social media. Make sure that you have a series of posts that call attention to the fact that you will be attending the convention. One small reminder: if there is a hashtag that is being used by promoter of the event, start using it. It’s one of the ways that you and your company get associated with some of the activity and buzz as it relates to the event.
■ Another big tactic is to plan your post-convention marketing effort. Make sure you create a specific database of individuals that you have met at the event with PRE-WRITTEN emails to follow up.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

Start Planning for Triple Play

One of the hardest things to do in the middle of a busy selling season is to plan the next season. Some planning should be given to the big trade show coming up in the fourth quarter of 2018: the Triple Play Convention and Trade Expo.

The Triple Play Expo this year is the largest real estate convention and trade show of its kind in the United States. It will take place in Atlantic City, New Jersey this year from December 3rd-6th.

From all of the projections, the strong market is expected to continue into 2019. The numbers are proving this out. Even though some of the hot markets are slowing down or even going flat, New Jersey is maintaining its momentum. According to the New Jersey Realtor website, in all categories for the first 6 months of 2018, there has been an increases: new listings, pending sales, closed sales, median sales price, and average sales price. Another important metric that has been positive is the length of days on market. The average days on market fell 12.2% to 65 days, and in the month of June 2018, the average days on market fell to 55 days, which is a 15.4% reduction from 2017.

With the convergence of these positive trends, an industry event, such as Triple Play, can prove to be a significant opportunity when laying the groundwork for the future sales funnel looming in 2019.

In an especially strong market, it’s to everyone’s advantage to pursue those networking functions that afford one-on-one interactions. The Triple Play Convention this year will give Realtors, loan officers and attorneys the opportunity to meet face-to-face with the possibility of resulting in leads and referrals.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

1 2 3 42

Subscribe

Place an Order Today