Articles Archives - ATG Title

What is a Reverse Mortgage? Should You Take One?

December 21, 2021 By Jeremy

A reverse mortgage is a loan that allows seniors 62 and older to generate income off of their homes. Reverse mortgages work by calculating the amount of equity built into your home and then lending it out to you so that you can access it without selling your home.

For example, if you have $50,000 left on a mortgage and the home is worth $100,000, you could take out a loan to access that extra $50,000.

Reverse mortgages are perfect for seniors who want to supplement their monthly retirement income or need access to fast cash to finance expensive repairs.

In addition, most reverse mortgages get paid off by selling the home. For this reason, a reverse mortgage is perfect for people who don’t have any heirs to leave their home to or do not plan to pay off their mortgage in full. And even if you do have a heirs, your heirs are not on the hook for a reverse mortgage so you don’t have to worry about drowning them in debt.

Now that you know what a reverse mortgage is, lets jump into some more details about them.

How Can I Cash in On My Reverse Mortgage?

There are generally four different ways that you can cash in on the equity of your home using a reverse mortgage: [Read more…]

What is Ownership Interest in a Property?

November 23, 2021 By Jeremy

Ownership interest in a property defines your rights as an owner of a property or that you have a claim to the property. Ownership is the highest form of interest and typically gives you the full rights as an owner to do what you please with the property, within the limits of the law.

You don’t have to live in a home to have an ownership interest in a property. Likewise, you can have an ownership interest if you inherit a property, split the property in a joint tenancy with your spouse, or invest a little amount in exchange for a percentage-based interest of the property.

While owning a property may seem fairly straightforward, understanding what ownership level is becomes important when applying for specific loans.

For example, HUD defines a first time homebuyer as someone who has not had an ownership interest in a home for the last three years. Even if you did not live in the home or had a 1% financial interest, you still would not qualify for an FHA loan or other first time homebuyer programs.

Now that we know what ownership interest in a property is defined as, we need to discuss what qualifies as ownership interest in a property. [Read more…]

What Does Pre-Foreclosure Mean? And How to Avoid It.

November 9, 2021 By Jeremy

Pre-foreclosure means that your lender has issued a notice of default (a public notice filed with a court) and that they are beginning the process of foreclosure. Fortunately, pre-foreclosure does not mean that your house will be foreclosed upon and there are many ways to get out of pre-foreclosure.

While pre-foreclosure may seem like a scary process, it is also an opportunity for you to get your finances back in order and to keep your house or walk away with cash-in-hand. Foreclosure is very expensive for your lender and oftentimes they will be ready to work with you on a solution that saves you your home and saves them their money.

Fortunately, there are solutions to get you out of debt and help you escape foreclosure without losing your house, and that is what you will learn in this post.

Below you’ll discover the process of pre-foreclosure and the options you have to avoid the bank completely foreclosing on you. But first, let’s learn the difference between pre-foreclosure and foreclosure.

What’s the Difference Between Foreclosure and Pre-Foreclosure?

The difference between foreclosure and pre-foreclosure is that foreclosure enables lenders to reclaim the remaining balance on your loan, typically by auctioning off your home. Pre-foreclosure is the preliminary process that gives homeowners a heads up that their lender has begun the process of foreclosure. [Read more…]

What is Escrow Balance?

October 19, 2021 By Jeremy

An escrow balance is the amount of money a lender sets aside to pay for homeowners insurance, mortgage insurance, future interest, and property tax payments.

As most of these payments are often made on an annual or semi-annual basis, your lender will bundle all of these payments together in an escrow account to be paid alongside your monthly mortgage payment.

When you access your monthly mortgage statement, you will find your mortgage payments separated into three categories:

Interest Payments
Principal Payments
Escrow Payments

Unlike interest and principal, escrow payments don’t count toward the actual debt of your loan. Rather, escrow counts toward the auxiliary services and fees, such as insurance premiums and property taxes that must be paid under law.

Your lender handles payment of your escrow services because it would be difficult for most people to come up with the considerable sum of money required each year to pay for property taxes, semi-annual insurance premiums, etc.

Now that you know what escrow balance is and how it works, lets look over some common questions about escrow balance.

Can I transfer money out of my escrow account?

[Read more…]

What is a Real Estate Broker?

October 5, 2021 By Jeremy

A real estate broker is a real estate agent who has obtained a license to become a practicing broker within his or her respective state. Unlike traditional real estate agents, brokers can work independently, hire staff, and create their own firm whereas traditional agents must work for a qualifying brokerage.

Real estate brokers are essential intermediaries in the transaction process, navigating transactions from initial listing and discovery to closing.

When you hire a traditional real estate agent, you are also getting the complete package of a brokerage, which provides access to an MLS, lenders, title insurance company recommendations, supervising agents, and so much more.

While agents can help buyers and sellers get through the initial stages of the transaction, a broker is required by state law to finalize the process.

Brokerage laws differ by state, but generally, you must complete a broker’s license exam to become a broker. For example, in Colorado and New Mexico, all real estate agents are licensed as brokers. However, these states require an additional exam and license before a licensed broker can hire agents and start their own firm.

While many may understand what a real estate agent is responsible for, it’s just as crucial for both agents and prospective home buyers to understand the role of the real estate broker. [Read more…]

Should You Pay a Mortgage Principal or Escrow First?

August 31, 2021 By Jeremy

Should You Pay a Mortgage Principal or Escrow First

If you’re stuck between paying down the balance on the principal or escrow on your mortgage, always go with the principal first. By paying towards the principal on your mortgage, you’re actually paying on the existing debt, which brings you closer to owning your home.

On the other hand, escrow is essentially third-party funds to cover things like property taxes, homeowners’ insurance fees, and future interest, so if it is really bugging you this is another option.

But as we said, when you have to choose between paying the principal or escrow on your mortgage, always go Principal!

First and foremost, you can shorten the length of your mortgage term. This process can be expedited even further by making extra payments or going above the minimum required payment. This happens by minimizing potential interest.

Paying the principal first also increases your home’s equity. [Read more…]

Can You Find Property Lines on Google Maps & Why?

June 29, 2021 By Jeremy

Regardless if you’re a buyer, seller, or agent, you need to know the exact details about any property you’re interested in dealing with. There’s no faster way to get in trouble with your neighbors than by selling or modifying what isn’t yours.

Of course, the best way to prevent these issues is to find exactly where your property lines are, and one of the most tempting sources is Google Maps. But is something so convenient also reliable?

Are property lines on Google Maps accurate?

No. Google Maps are not that accurate, and you shouldn’t rely on them as a source for factual information regarding property lines.

Much like a plat map, they only provide a general idea of where property lines exist. As with plat maps, there are discrepancies in terms of accuracy. Property lines shown on these platforms are known to be more than several feet off their actual location.

Not only that, but Google Maps does not show any easements that might exist on a property. If you’re not familiar, an easement grants another individual or entity access to a portion of your property. If you ignore this and build on top of an easement, you might wind up having to relocate or tear down the structure that exists there. [Read more…]

What is Part-Time Real Estate Agent (Pros and Cons)

May 25, 2021 By Jeremy

Are you thinking about becoming a part-time real estate agent? Then you’re likely thinking “Maybe I can give this a try?” and possibly thinking if it will remain a side hustle or a full time job. Becoming a part time real estate agent is a great way to get your feet wet, but it comes with plenty of obstacles a full time agent does not have to face.

By talking to long time agents, brokerages and by using our experience, we’ve created a guide to the pros and cons of being a part-time real estate agent to help you determine if this is the right more for you and your goals. At the very bottom you’ll find 5 tips to help you succeed if you do decide this is the right path for your career.

Is it legal to be a part time real estate agent?

Yes it is legal to be a part-time real estate agent, and yes you absolutely can work as a part-time real estate agent. An essential factor to remember is that all real estate agents have control over the amount of work they take on. It might not be as easy to find a brokerage to join, and you do need to work during your downtime, but this industry is flexible enough for people to get their start by working part-time. Many very successful agents get their start by working as an agent part-time until they have enough of a workflow to justify leaving their day jobs.

Do you need certifications to be a part time real estate agent?

The exact certification requirements are dependent on your local board. Being a part-time real estate agent is still a professional endeavor, so it requires some certifications. You’ll need to complete schooling and obtain the appropriate certificates to act as a real estate agent. That said, you can expect to complete schooling, find a brokerage to join, and take an exam at the very least.

How much can I expect to make as a part time agent?

[Read more…]

What is a Pocket Listing in Real Estate?

May 18, 2021 By Jeremy

A pocket listing, also known as an off-market listing, is any listing that is retained by a listing agent and not listed on the Multiple Listing Service (MLS). Instead, the agent tries to market and sell the home within a private or select network. In other words, it’s a real estate listing that isn’t made available to the general public.

Is a Pocket Listing the Right Move?

Listing in the MLS has its advantages, but it’s not always the best choice for sellers.

The number one reason to consider using pocket listings is to maintain your anonymity. Say you’re a local politician, judge, or celebrity. Chances are you don’t want to make your personal information public information. Disgruntled individuals or obsessive fans can use the opportunity to visit the home sheerly for kicks or to learn more about you.

Keeping the property out of the public listing is also an excellent idea for someone with a particularly interesting property. Multi-million dollar homes and unique properties are sure to draw in people who are just trying to take a look with no intention of making an offer.

Or say you’re just the average person who already knows of people who may be interested in buying your home. It can be a relative looking to get their start or someone close to you that’s been waiting for you to sell.

Why would you want to publicly list the home to draw the attention of buyers before they have an opportunity to make an offer? Instead of potentially wasting other buyers’ time, you hire an agent to facilitate your end of the transaction in a straightforward manner, however there is potentially dual-agency—which can also double as a con if the agent isn’t ethically driven.

Another benefit to using pocket listings is that they serve as a way for agents to market the home before it’s ready for sale. Say you’re performing some extensive repairs, the agent can use pocket listings to get buyers interested and warmed up to your asking price long before you officially list it. This “premarket” strategy is advantageous because you’re less likely to spend a long time with the house listed publicly while you wait for someone to make the offer you’re looking for.

Why You Might Consider Another Route

While the pros are short for pocket listings, that doesn’t mean they aren’t the perfect option for some sellers. If you’re still on the fence, you might want to consider the reasons that make the MLS listings a desirable route to take when marketing your home.

The most obvious thing to consider is market exposure. Remember that the property isn’t being marketed to the general public. Instead, you and your agent are responsible for marketing the home privately. That means no open houses, non-conventional advertising, and no listings on sites like Realtor or Zillow. [Read more…]

New Service Announcement Title Insurance for Dog Houses

April 1, 2021 By Jeremy

To welcome the spring season this April 1st, ATG Title, the DMV’s leading title insurance, escrow, and closing company is proud to offer a new line of services for our furry friends: Dog house title searches and insurance!

Why are we offering this? Simply put, we went sniffing around and after pawing it over realized there is a begging need for it. After the executive team tugged around the rope they all agreed it is time our furry friends get the same protections we have.

It all started with a dispute over a certain doggy domicile when the land survey “dug” up an old marking from a few summers before. Fluffy the Bullmastiff was casually relaxing in her new home when Cujo the Chihuahua suddenly laid claim to the house. As you can imagine, it was a “ruff” situation!

When Fluffy first came to ATG for help, she appeared to be “crying wolf,” but after listening to her side of the story, we agreed that the situation was simply “for the dogs!” [Read more…]