What you need to know to refinance a home if the home is in a trust

What you need to know to refinance a home if the home is in a trust

With mortgage rates still around historic lows, I have had a few clients this past year where banks have given them trouble when trying to refinance their mortgage on property in a trust. The situation usually goes like this: the client’s home is in a revocable trust for estate planning purposes and they want to refinance their existing mortgage. The bank says they will not refinance the mortgage unless the house comes out of the trust. So, what should they do? The easiest and cheapest thing that I would do for my client is draft a quit claim deed transferring the client’s property out of the trust back into their name individually. The client can take that deed back to the bank and continue the refinance process. The bank will record the deed as part of the refinance transaction. Once all of that has transpired and the new mortgage recorded, I can draft another quit claim deed transferring the property back into the trust. Now, this might seem like a headache, but for the small cost of the deeds and recording fees vs. the benefits of a lower interest rate and the long term estate planning, it makes sense. Too complete both deeds, it would only cost a couple of hundred dollars. For that price, you would receive the benefit of the lower interest rate (after you refinance) and you will still get the benefits of having your real estate owned by your trust (once I complete the second deed). If you are thinking about refinancing and your home is owned by your trust, contact me for help....
When selling real estate, do I have to attend the closing?

When selling real estate, do I have to attend the closing?

For most of the real estate transaction sales that I handle, I am able to arrange it so that the client does not have to show up at the closing. This is a huge benefit for my clients because they don’t have to take off from work and they can focus on getting out of their old home and into the new one.   The process for not attending the sale closing is that I draft all the sale documents ahead of time, the client comes to my office some time prior to the closing to pre-sign the documents. Additionally, the client also must give me power of attorney to sign the closing statement along with a few other title documents at the closing. The power of attorney also gives me the authority to make any last minute decisions regarding the sale that may be necessary.   What about if you are buying a house and don’t want to attend the closing? Well, that depends. If it is an all cash deal I can easily handle the closing with a power of attorney. However, if you have to take out a loan to purchase the property you will need to attend the closing to sign the loan documents. That is something I will not sign on your behalf.   I have been handling real estate transactions for over a decade. Whatever your situation we can find a solution together. Just give me a call....
What is a transfer on death instrument?

What is a transfer on death instrument?

Did you know that Illinois gives you an easy way to transfer your real estate while keeping it out of probate without having to transfer it into a trust? It is called a transfer on death instrument or TODI. Once you decide who you want to have the property, I can help you fill out the document, get it recorded with the appropriate county, and upon your death the real estate will transfer to the party or parties named in the document without having to go through a long probate process.   Keep in mind this document is revocable and you can change your mind at any time. You can always change the names of the people who will get the property and it has no effect on the property until after your death so you can sell or mortgage the property in the meantime. You can also name multiple people to split the ownership of the property after your death.   What’s it worth to have piece of mind for your family?  Please contact me today for help in completing your estate...
Should I accept a Quit Claim Deed if I am buying a house?

Should I accept a Quit Claim Deed if I am buying a house?

A quit claim deed is a document wherein the grantor transfers whatever interest he has in real property, like a house. The person giving the property is referred to as the grantor and the person receiving the property is the grantee. To be valid, a quit claim deed should include a legal description, county name and address of where property is located, consideration (people usually don’t put the actually selling price), signature of a notary public, and the grantor’s signature. The most important thing to know about a quit claim deed is that it doesn’t make any warranties or promises about the title to the property. All the document does is convey the seller’s interest in the property to the buyer subject to any liens of record. This is the complete opposite of a warranty deed wherein the grantor transfers title to the property with a guarantee of clear title. So, if you are buying a piece of property from someone other than a family member (and maybe even then) a warranty deed should be obtained from the seller so that you have a guarantee that the property has clear title and is free of...