Dealing With Inherited Homes (part 3) – Family Members

DEALING WITH FAMILY MEMBERS   Disputes among siblings or legal heirs over the settlement of inherited property are common. Often, disputes over a property are dominated by past issues of sibling rivalry and are a fight for dominance. In the absence of parental guidance, adult siblings are left to face the scenario of ambiguity or disagreements over their rightful role. It is essential that you work to ensure that disputes and disagreements do not lead to litigation. Litigation will only worsen the situation by causing issues with family members and creating uncertainty and wasting time waiting for legal issues to be settled, as well as the usual expense and aggravation associated with legal hearings. The tremendous cost involved in litigation … Read More

Dealing With Inherited Homes (part 2) – Benefits of Selling

(Part 2 of Inherited Homes.  Click Here for Part 1)   No matter if you are a single heir or one of the multiple heirs to the property, selling it as quickly as possible will save money, time, stress, and the tiring effort involved in the settlement process. There are several benefits to selling the inherited property. For example, in some cases, along with inheriting property, the heirs end up inheriting unexpected commitments and difficulties with legal and financial implications. Every situation when someone inherits and then sells a home is typically different from each other. For example, if it is discovered there are environmental concerns or the mortgage is “underwater” (meaning the mortgage balance is more than the home … Read More

Dealing With Inherited Homes (part 1) – Best Practices

DEALING WITH INHERITED HOMES: BEST PRACTICES FOR FAMILIES Part 1 Dealing with an inherited home is a complex subject, and there are several complicated issues to resolve.A web search for “selling inherited property” returns more than 10 million results. A glance down the first page or two shows some of the issues: • Do You Pay Capital Gains Taxes on Property You Inherit? • What Taxes Are on an Inherited House? • If You Inherit a Home Do You Qualify for the $250,000 Home Sale Tax Exclusion? • What to Do When You Inherit Your Parent’s House, Home Inheritance Issues, and on and on.   Additionally, it is not uncommon for a person selling an inherited home to have a … Read More

Tax Reform 2018

The 2018 tax reform bill has passed. So now that the 2018 tax reform has passed, what does that mean to you as a homeowner? The California Association of Realtors (C.A.R.) created this info-graph as a way of explaining whether California is a winner or a loser, after all is said and done. Of course, we are not a tax adviser. If you need a referral just let us know.

Avoid Private Mortgage Insurance (PMI)

The easiest way to avoid PMI is by putting 20% down payment; however, PMI can also be avoided if you only have 5% or 10% for the down payment. The way to accomplish this is via a first and second mortgage combination commonly referred to as 80/10/10 or 80/15/5. These two methods combine a first mortgage lien for 80% of the home price with a second mortgage lien for either 10% or 15% of the home price leaving the remaining 5% or 10% as the down payment. Because the first lien is at the magical 80% loan-to-value, there is no PMI required, even though a second mortgage is being |piggybacked| onto the financing thus allowing for the lessor down payment. … Read More