Any papers which contain vital information about a property or piece of land are called property records. The records generally indicate who is the legal owner of the property, which also includes proof of ownership and the deed registered under the his or her name.
A property records office is a place which maintains such information for every property, plot or patch of land owned in that particular county or city. The records of any sale, purchase with respect to property will be maintained in this office. Other related information to the said property can be found in this office. Papers with respect to any loan, outstanding payments, tax related information, detailed information about the owner can all be all found.
There are a number of reason for which property records might be needed. Here are a few to name.
Records contain vital documents about the owner and all related information which comes in very handy when there is a need to settle disputes with respect to any mortgages and foreclosure for the property.
Property records contain documents which can be utilized for dealing with any easement rights. Easement can be explained as a right to use someone else’s land or property for a specified purpose. In case there is a dispute as to who the rightful owner is, property records come in handy to settle such cases.
Property records come in handy when there are lien disputes which need to be resolved. Lien is a right to keep someone’s property in your possession until a debt which is owed by that person is paid off. However, the possession of the property is transferred back when the debt has been paid. In some cases, there might be a dispute as to any outstanding lien is and this is where property records come in handy.
All vital information related to the property comes in handy when there are disputes which need to be settled for wills, property shares, legal or nominated inheritance for that matter. The documents will be very handy to determine who the rightful owner is or who will be the rightful owner after the dispute has been resolved. Property documents are vital to resolve such issues.
Property has a fixed boundary line, which defines it area. Every person who owns a property will also have a set of documents which will have the specifications for this boundary line. Often there are issues which arise due to such boundaries and hence these documents come in very handy.
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.