Dear Michael: I am purchasing land that is currently held in the form of two 50 percent separate deeds to the same person (i.e. both owned by the seller). Which is the better way to transfer title to me? Should the seller record two Grant Deeds transferred to me (one for each of the two 50 percent ownerships), or should he first Quit-Claim one of them to himself, then transfer the (now 100 percent) Grant Deed to me?
Answer: If title is currently held 100 percent by one owner, then the seller can use just one deed to transfer title. It does not matter if the current owner acquired 100 percent ownership at once or if he acquired it in portions over a long time, as long as he currently own 100 percent then just one deed is needed.
Dear Michael: I sold my home as a short sale one year ago. How long do I have to wait to purchase again? I was told two years when I sold my home. Now I am told four years. Which one is it?
Answer: Fannie Mae made two changes that will affect home buyers one positive and the other negative.
- Before August 16, 2014 buyers who had a 20 percent down payment could repurchase again after only two years. Buyers now have to wait four years instead of two years to purchase a home, regardless of the size of their down payment.
- Until August 16, 2014 buyers with a prior short sale and a 5 percent down payment had to wait seven years to qualify to repurchase a home. Now buyers only have to wait four years.
It is four years before a buyer can repurchase again using conventional financing. So no matter what size the down payment is, either 40 percent, 20 percent or 5 percent down, a buyer with a prior short sale has to wait four years now across the board before they can get conventional financing again. FHA. It is three years before a buyer can repurchase again using FHA financing.
Dear Michael: My father recently died. About eight years ago my parents added my sister’s name to the deed on their home. My father had some small credit card debt, which neither my mother nor sister knew about. Can the credit card company put a lien on the house? Is my mother or sister legally responsible for this bill?
Answer: Since the credit card and the outstanding balance isn’t ‘tied’ to the house (unless it was some sort of debit card tied to an equity line of credit, which your mother would have more than likely had to sign for), the credit card company cannot place a lien on the house. Your mother may have some responsibility for the credit card debt. Check with an attorney. I highly recommend that you also have the attorney review the deed, and status of how title is recorded. The attorney might recommend some options that will make things a lot easier and possibly financially beneficial for you at a later date.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com.