Second Mortgage Foreclosure and Home Equity Loan

The past ten years leading up to 2007-08 were amazing years for the real estate market. Home values were skyrocketing at double-digit percents across the entire nation and everybody was building up equity in their homes. Home loan providers and lenders capitalized on this thriving real estate market by providing second mortgages and home equity loans to people who had built up a significant level of equity in their property and wanted to access this equity as cash. It became routine to use your property as a virtual ATM machines by extracting the equity via a second mortgage or home equity loan and then using the money for whatever reason.

The problem came in 2007-08 when the entire real estate market began to tumble and home prices began to drop and stagnate. People who took out second mortgages and home equity loans were often left with notes on upside down properties with no way to payback the lenders. People began to go into foreclosure, and this meant that they were going to eventually lose their homes unless they began making payments on the variety of loans that were against their property.

Many people began to wonder what would happen if they only defaulted on their second mortgage and kept paying their first mortgage. Would they still have to foreclose and lose their property? Well, not so much because often times with situations like this the person that defaults on their second mortgage will still be able to stay in their property and if the house is upside-down then it is pretty much commonplace for the homeowner to reach an agreement with the bank or lender so that they can come to terms with the second mortgage that they may have taken out years ago. The majority of homes that default on second mortgages do not end up going into foreclosure and if you find yourself in this situation you can be rest assured that if make an effort to contact your lender then you shouldn’t have to go into foreclosure unless you stop paying your first mortgage.

Real Property and Personal Property – Real Estate

Every residential real estate transaction has both real and personal property. It is also possible for real property to become personal property and personal property to become real.

Real property is the land and also any improvements built upon it. In most cases it is also anything that would be considered immovable or affixed to the land; this may occur naturally or by man. Here are some examples of what is commonly referred to and considered to be real property: land, houses, trees, streams, wells, window treatments, and light fixtures, to name a few.

Personal property is just about everything else that is not considered real. For example, plants may be considered either real or personal, but those that are in pots would be personal property. All belongings in the house that are not considered a fixture are also personal and are most often not included in the residential purchase agreement. Though, there are always exceptions to the rule and anything is negotiable. Some times negotiations will include some personal property to remain in the home at the close of escrow, such as furniture.

I advise home owners who are considering listing their home for sale that fixtures such as their prized chandelier hanging over their dinner table will be transferred in the sale, if not otherwise noted in the listing agreement or residential purchase agreement. Everything is negotiable, it is vital to become educated or hire an agent that is well versed in all aspects of residential real estate transactions. A fixture is also something that it is customized to the property in such a way that removing it would be removing a part of the real property.

It is important to note that though the law is very strict about what is personal and real, anything is negotiable. The most important thing a seller and his or her listing agent can do is when in doubt, exclude items for transfer in the applicable real estate contracts. As long as it has been agreed upon by both parties before the close of escrow, there is nothing to worry about.

This is an area of real estate that is not always clearly explained to the buyer and seller and it can add unnecessary tension between the buyer and seller as well as added stress to agents and other third parties involved. It is always advantageous to point out examples of real and personal property to buyers and sellers early in the relationship.

Exploring Property Crime and Home Security

Each year the statistics seem worse and worse. Certain categories of statistical data rise, and the reports seem once again designed to keep homeowners shaking in their shoes. One particular category is extremely frightening, that of ‘property crime.’ To many homeowners, the thought of falling victim to a ‘property crime’ is so frightening because it encapsulates many fears such as waking to face an intruder in the middle of the night, or someone entering the home to forceful harm family members. The problem, however, is that not everyone knows what exactly constitutes a ‘property crime.’ There are several categories, each of which can be equally as detrimental to your safety and home security. Consider some of these top ‘property crimes’ and how to prevent them from happening on your property.

Break-ins. There are many reasons that a person might want to break into a home. For starters, the obvious reason is to rob the homeowner of valuable contents which can later be sold for cash or used to obtain other expensive items like drugs or guns. The intruder may also simply want to cause harm to the family or homeowner, or may be engaging in thrill-seeking behavior. Whatever the reason, it is important to prevent an intruder from breaking into the home because once inside the tension and passion of committing such a crime can easily cause the situation to escalate. When such a situation escalates it is no longer a matter of losing belongings, but can terminate in violence or even death. Use excellent window and door locks at all time to make entry into the home as tough as possible. Eliminate things around the lawn that might help the intruder such as bushes or fences that provide cover from the street view, and tools or ladders left out on the lawn. When possible, consider installing a home alarm system as the last line of defense.

Vandalism. The word vandalism can refer to many kinds of destruction in and around a home. Today, there are more people than ever having trouble to find work, keep work and even get into or pay for higher education. This leads to an increased number of youth out on the street or left unsupervised by adults. The results of such a situation can easily escalate from boredom into destruction. Anything from simple graffiti to smashing windows or menacing phone calls can be seen as a direct threat to the homeowner. While such pranks may seem harmless, the fact of the matter is that such situations can escalate quickly as the vandals increase their dependence on thrill-seeking behavior. Instead of putting up with vandals, make a call to the authorities and report each and every incident. This way, you have a case built up when something truly horrible happens.

Arson. It’s always a good idea to protect a home with a home security system that includes flood and fire protection. One of the scariest things to think about, however, is the idea that someone else might actually go about lighting a house on fire. Whether out of boredom, by accident, or for the enjoyment of destruction, arson is scary. Protect your family from arson by keeping vandals at a distance with perimeter and home alarm systems.