Articles Archives - ATG Title

Pre-Foreclosure, Auction, REO: What’s the Difference?

May 3, 2022 By Jeremy

The differences between pre-foreclosures, foreclosure auctions, and REO foreclosures (real estate owned) is that each one is a step in the foreclosure process instead of being a type of foreclosure. Each one of these steps follow one another and each one has opportunities for you to save your house, although they diminish as each progression occurs.

Pre-foreclosure is the first step where you get a notice from your lender that they are starting the foreclosure process. If you cannot work out a deal, the next step is where you go into foreclosure and the lender will auction your “real property” to the highest bidder in hopes of getting their money back. If the auction does not work, your lender may decide to hold onto the property and sell it themselves. This is called REO foreclosure.

Now that you know each is a step in the process, let’s dive a bit deeper into each so you can work to avoid losing everything, or if you’re a real estate investor, determine if a foreclosure home is the right one for you to buy and when to engage.

Note: If you’re a home owner, don’t think of an investor as the enemy. They may decide to offer you a rent-to-own agreement so you can stay in your home, they earn a profit, and you may be able to buy it back over time. If you have no other option but foreclosure, a real estate investor may buy your home from you and you’ll at least have some cash in your pocket instead of losing everything.

Let’s start by looking at what each of these steps in the foreclosure process mean, and at the end of this post you’ll find a helpful table sharing ways to avoid pre-foreclosure, foreclosure auctions and having your home become an REO property.

Pre-foreclosure

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Real Estate vs. Property Tax – What’s the Difference?

February 15, 2022 By Jeremy

The difference between real estate taxes vs. property taxes is that real estate taxes are what the city or municipality you live in charges you for your property and based on the fair market value of your home, while property taxes are related to any moveable items you own. Examples of this include furniture, cars, boats, equipment, and business machinery. Real estate taxes are different from property taxes in that you have to pay taxes on real property.

Real property is anything directly connected to the land like a house, a well, a barn or anything not movable. The same applies to businesses that own an industrial facility or a manufacturing facility. Property taxes are the taxes you pay on moveable items that you own, which can be anything from a car to a boat. For businesses, property taxes apply to machinery and equipment. [Read more…]

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?

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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?

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