Showing posts with label Estate issues. Show all posts
Showing posts with label Estate issues. Show all posts

Thursday, December 10, 2015

Macomb County proposes real estate fraud alert system

Macomb County proposes real estate fraud alert system
By Christina Hall, Detroit Free Press11:34 p.m. EST December 8, 2015
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(Photo: Christina Hall/Detroit Free Press)
Fraud on real estate transactions?
It’s real and a problem that Macomb County Clerk/Register of Deeds Carmella Sabaugh wants to curb.
Her office is proposing a fraud alert system to make real estate transactions safer and help protect private property rights by reducing the risk of fraud through the use of real estate consumer alert notices.
The letters will include the property address and book and page number where owners can look online for free to search their records. Documents will cost $6.
The fraud alert system would cost about $61,782 a year, starting Jan. 1, money that is available in the Register of Deeds Technology Fund.
“This is a big one,” Sabaugh said today of the effort, one of many by her office has made to make services easier for users, such as kiosk check-ins and text alerts for jurors. “Your home is your castle … help protect that home.”
Deputy Register of Deeds Craig Jones told county commissioners that said the office sees three kinds of fraud, including a tax or contractor’s lien on a property that owners have no knowledge of.  If a person doesn’t search his or her property, fines and penalties can add up, he said.
The office also sees situations among siblings where one child will ask their mother or father to sign documents and the parent doesn’t know what they are signing and other siblings are unaware.
The system would send consumer protection courtesy notices to all the names on the property, which could be helpful to landlords, officials said.
It could also help property owners who have paid off their mortgages but the register of deeds’ records still have the file open. That would prompt the property owner to call their bank or credit union to make sure those records are discharged, officials said.
Jones said the system probably will be up by the beginning of 2016. The Register of Deeds has handled about 162,000 documents this year, which is up a little from last year, he said.
The office worked with the FBI for the project and Jones has an agency contact should fraud be reported.
According to a packet given to county commissioners on the proposal, Michigan was 11th in the nation with significant mortgage fraud activity.
The Oakland County Clerk/Register of Deeds Office offers a free service to help people verify their personal land records to fight fraud, according to its website. The service allows property owners to see if unauthorized documents have been recorded against their property in that county’s Register of Deeds Office. It also has a fraud alert system to alert someone by email or phone of any recordings in their name or business name once they register, according to the website.
In Wayne County, the Register of Deeds has a property records fraud unit to receive complaints, investigate, charge and prosecute people for criminal and fraudulent land record activity, according to its website. The office collaborated with the county prosecutor and sheriff to establish the first in the nation property fraud task force.
Preventing real estate fraud is something everyone should be monitoring, Sabaugh said.
“If you plan to do anything – moving or taking out a home equity loan – you can’t do it if there is a cloud on your title,” she said.
Contact Christina Hall: chall99@freepress.com. Follow her on Twitter: @challreporter.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.

Monday, November 3, 2014

Watch for these 10 surprises when inheriting real estate


imagesUnfortunately, your relative’s home likely comes with strings attached

November 01, 2014 11:00AM

Inheriting a home can seem like a windfall, but it’s rarely that simple. From reverse mortgages to estranged relatives eager to stake a claim, here is a roundup of the 10 most common headaches real estate heirs face via the Huffington Post.

Mortgage Transfer
Typically, upon the transfer of ownership of a property with a mortgage, there is a due-on-sale clause contained within the contractual documents. That clause means that the entire loan is billed rather than just the installment payment.

Reverse Mortgage
The money owed on the reverse mortgage that sustained your relative in their twilight years must be repaid to the lender, including all of the capitalized interest thereon, before you are able to take ownership of the property.

Rental
However, when an inherited property is encumbered by a home loan, you can sometimes rent out the property without first refinancing the mortgage from a residential home loan to an investment loan. Although none of that applies if you are stuck with a reverse mortgage.
Homeowners Insurance
Don’t expect to keep the prior homeowners insurance policy following the death of the decedent-insured when you inherit, because you can’t.

Testamentary Substitutes
Best-case scenario, ownership can transfer without the need for a court order or even a deed change upon the death of the owner. If the property was titled as either a joint tenancy, tenancy or was owned by a trust, pre-death, than the surviving co-owner automatically will receive full ownership at the time of death.

Estate Tax
Get ready to pay taxes out the nose. In New York, descendants may be liable for both state and federal Estate taxes. Estates valued over $5.34 million will not only face New York State’s Estates taxes, but also require payment of a federal Estate tax bill, at a rate of 40 percent, for the amount that the Estate valued in excess of $5.34 million.

Capital Gains Tax
In New York, capital gains tax can reach a rate of 31.5 percent when combined with federal capital gains tax. Luckily, inherited estates are assessed at the date of death value of the property to the date of sale for capital gains purposes and therefore avoid a great deal of this cumbersome tax on future transactions, according to the Huffington Post.

Probate
When property is owned by the decedent, or with another person, as tenants in common, then the inheritance can only be transferred through a court proceeding called probate. So get ready to pay those court fees.

Heirs at Law
If the property owner did not leave a will, estranged family members may have a claim. New York State utilizes a table of consanguinity that prescribes the heirs at law when a decedent died without leaving a will. Under that table, a surviving spouse only receives the first $50,000 and then, must split the remaining assets 50/50 with the decedent’s surviving children – even children from prior marriages.

Right of Election
No matter how wicked the step-parent, you cannot disinherit a spouse completely, no matter how the will reads — except if the surviving spouse expressly waived their rights (i.e. incident to a prenuptial agreement). Your step-parent can elect the greater of $50,000 or 1/3 of your parent’s entire net estate. [Huffington Post] – Christopher Cameron

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.