One of the common documents a borrower may encounter in escrow is the “Notice of Right to Cancel.” This document is also referred to as the “rescission document” or the “3-day Notice of Cancellation.” This notice will be found in the loan document package, and...
Several new laws affecting the real estate industry became effective this year. In a previous post, we discussed SB 1149: Foreclosure Protection for Tenants, where a landlord is prohibited from harming a tenant’s credit score by revealing unlawful detainer records, unless the landlord prevails in court, and AB 1809:...
Several new laws affecting the real estate industry became effective this year. In a previous post, we discussed SB 931: Short Sale Deficiency Protection for Sellers, in which lenders who have agreed to a short sale will not have the ability to obtain a deficiency judgment against the...
New scams are popping up everywhere these days. Emails about winning money, theft of personal information, and insurance scams have unfortunately become present in daily news or conversation. It is important for everyone to be aware of these scamming tactics and to learn how to...
When real estate is sold in California, the state requires that income tax for that sale must be withheld. In this post we will discuss sellers who are individuals or who may qualify as an individual. We will also explain qualified exceptions and exemptions to...
When purchasing a home, lenders will require home buyers to purchase Private Mortgage Insurance on FHA loans because their down payment is less than 20% of the value of their new home. This insurance allows borrowers with less cash to purchase a home with smaller...
Senate Bill 931, providing California Short Sale Deficiency Protection, will go into effect on January 1, 2011. This new law states that existing lenders of record who have approved and agreed upon a short sale will not be able to obtain a deficiency judgment against...
In every purchase/sale of Real Estate, a Preliminary Change of Ownership Report (PCOR) must be filed. The PCOR must be filed for other types of transfers as well, but in this blog we will consider only purchase/sale transactions. After opening escrow, a buyer can expect...
At the time of signing loan documents, the buyer is presented with an estimated settlement statement by their escrow holder. This statement includes the initial amount the lender will collect in order to establish the Impound Account. This amount often brings up questions from the...
An Impound Account, also known as an Escrow Impound Account, is an account set up and managed by mortgage lenders to pay property taxes and insurance on behalf of the home buyer. These accounts are set up with the lender during escrow to ensure that...
