There are usually frequent disputes that arise between the homeowner and the HOA. Homeowners often feel that the HOA abuses their power and issues citations for unfair reasons.  Neighbors often report other neighbors to the HOA because they do not like each other.  The HOA was created to maintain the community, not to deal with domestic disputes.

If you are currently frustrated with your HOA, there are rights you need to be made aware of.

HOA Board Members Can Be Removed

If you are frustrated with a particular member of the HOA Board, there are steps you can take to get this person removed.  A petition must be started and signed by a certain percentage of the community before the removal process can begin.  If you live in a community with fewer than 1,000 units, you will have to get at least 25% of the community to sign the petition.  However, if you live in a community with more than 1,000 people, you will only need to get 10% or 1,000 members, whichever is less.  After receiving enough signatures and the petition is submitted, the Board of Directions will hold a meeting within 30 days.  All of the homeowners will be informed.  At this meeting, at 20% of the homeowners must be present either in person or by absentee ballot to vote.   The decision to remove the board member in question will be determined by majority vote.  However, the HOA can content the vote if they choose to.

HOA Community Rules Can Be Amended

Take a look at the declaration that was created when your HOA was founded.  Almost every declaration states that certain HOA powers may be amended.  The community usually does have the power to amend the HOA powers.  The trouble with attempting to amend a HOA Declaration is getting the immense community support.  If the HOA decides to fight your recommended amendment, you will probably have to meet with an experienced attorney if you want a shot at getting anything changed.

HOAs Have Power Limitations

Understand that HOAs only have so much power.  If you think they are abusing it, you may be able to make a case!

If you feel that you are a victim of a wrongful foreclosure due to your HOA, give us a call today: 817-310-0136

Foreclosure is a legal process that takes place when a lender such as a bank, attempts to recover the balance of a loan from a borrower who is no longer making mortgage payments per their loan agreement.  The lender may force the sale of the property used as collateral for the loan. Foreclosure is a lengthy procedure which can typically take up to 180 days to complete. After the filing of a formal complaint or lawsuit with the Court having jurisdiction, for failure to pay, various legal proceedings are put into motion, culminating with the sale of the home at auction to the highest bidder, forcing the former owner to vacate the residence immediately once a Certificate of Title has been issues by the Court Clerk to the new owner.

What is a Real Estate Short Sale?

A real estate short sale is an event whereby the mortgage lender agrees to accept a loss on the repayment of a mortgage loan. This occurs when the borrower is unable to make monthly mortgage payments and has to sell. Prices have dropped to the point where there is no longer equity in the property and the amount owed is more than the total value of the property. This is where short sales can get tricky and often present many variables. For instance, a realtor or home owner can list a short sale, but it the lender that makes the final decision on the amount they are willing to accept for the house. However, if the house has not gone into foreclosure, the lender cannot make the homeowners vacate until a short sale offer has been accepted by the lender and closing has transpired. Homeowners in financial distress often opt for short sales to avoid foreclosure which is detrimental to their credit.

Foreclosure vs. Short Sale

Foreclosure:

• Appears on your credit reports and can hurt your credit rating; having a major impact on future credit worthiness and interest rates.
• Can appear on your credit records for up to 7 years, and can also affect your ability to secure certain employment.
• Could present a road block for security clearances.
• Creates a lengthy waiting period before you can purchase again.
• On future 1003 applications, a YES to the question on foreclosure may impact your ability to borrow.
• Forces you to vacate your home immediately or in a worst case scenario, being move out by local law enforcement authorities; creating an embarrassing and emotional scenario for you and your family.

Real Estate Short Sales

• You have control over the price of your home since you still have ownership, because the lender has not yet taken it. Although the lender has the final decision, prices in a short sale are higher than a foreclosure.
• A short sale allows you to stay in your home longer, and does not have an adverse effect on your credit report in the same manner as a foreclosure.
• Choosing this process will not have a negative impact on your current or future employment.
• There will be no effect on security clearance.
• There is no question on the 1003 application with regard to short sales.
• Only late payments will impact the credit score. Once the sale is done, the mortgage may be shown as “paid as agreed”, “paid as negotiated” or “settled”. This can lower the credit score as little as 50 points. A short sale credit score impact; however is not long term.

From a practical standpoint, a short sale in lieu of foreclosure is by far the very best option. If you are still the homeowner, you can have input on the price of the home as well as the timing of the sell. Plus, it is easier on your credit reports, but most of all it is much more pleasant than being forced or evicted from your home by the court.

Why Nancy Carroll PC:

There are still many factors when it comes to short sales. Banks are not REQUIRED to grant you a short sale. You need experience on your side. Nancy Carroll PC has successfully negotiated over 200 short sale transactions. Texas short sale attorney and Texas short sale specialist.

Get some of your questions answered with a free phone consultation: 817-310-0136

In this blog we will discuss the essentials of estate planning and when you should start estate planning.

Estate planning is critical to everyday living, and should be at the top of everyone’s to-do list, no matter their age or marital status. If you have not yet planned your estate, we urge you to do so right away. People need to know and understand they should prepare for the unexpected. Remember that ole saying, “tomorrow is not promised?” Well it’s true. Think about it… What would happen for instance to your children, your home, and all you have worked for in the event of your sudden death or disability if you have no estate planning in place?  A single word can accurately describe what would surely follow: CATASTROPHE! Therefore, remember to plan ahead.

BASIC ESTATE PLANNING FOR ALL PERSONS INCLUDES THE FOLLOWING MUST HAVES!

-A Will to establish what would happen to your assets, and also names the guardian for your children. Dying without a will is called dying “intestate”, and gives you no voice. It can be costly to your heirs and can bring with it several other issues such as family dissension and probate court intervention. Even if you have a trust, you still need to take care of any holdings outside of that trust when you die.

-A Durable Financial Power of Attorney to handle your financial affairs in case of incapacity.

-A Medical Power of Attorney to make medical decisions for you in the event you are unable to do so.

-A Living Will to specify the measures that can be taken to sustain life.

ADDITIONAL AREAS OF ESTATE PLANNING TO CONSIDER:

-A Living Trust. If you hold property in a living trust, your survivors won’t have to go through Probate Court, which can be a very lengthy, stressful, and expensive process.

-Planning For The inheritance of Your Children. It is always wise to name an adult to manage any money and property your minor children may inherit from you.

-File Beneficiary Forms. Appointing a beneficiary for all bank and retirement accounts make those accounts automatically payable at death to your beneficiary, thus bypassing the probate process.

 -Secure life Insurance. If you have children, own a house or have substantial debt or estate tax, life insurance may be a great choice. For example, in addition to helping to support dependants, life insurance can help provide immediate cash at death. Insurance proceeds are also a good source for paying your debts, funeral expenses and income or estate taxes.

-Understand Estate Taxes. Most estates will not owe federal estate taxes, because this tax is only imposed on persons whose taxable estate is worth more than 5 million. For deaths occurring in the year 2012, the exempt amount is 5.12 million. Married couples can transfer up to two times the exempt amount tax-free.  Also, property left to a spouse (must be U.S. citizen) or tax exempt charity is exempt from the tax.

-Cover Funeral Expenses. An account can be established at your bank where funds can be deposited to pay for funeral expenses.

-Business Protection.  If you are a sole proprietor, setting up a successor plan is crucial. If you are in a business partnership, you should create a buyout agreement.

-Secure And Organize All Important Documents:

•  Will
• Trust
• Insurance Policies
• Real Estate Deeds
• Stocks, Bonds, Annuities Certificates
• Bank Account Information, Mutual funds, Safe Deposit Boxes
• Retirement Plan Information such as 401(K) accounts and IRAs
• Debt Information, Credit Cards, Mortgages and Loans, Utilities, and Unpaid Taxes
• Final Arrangements, including Funeral Pay-Out Plans, and any other instructions you have given

About Nancy Carroll, PC:

Our practice handles a variety of services regarding trusts and estates including: estate planning, estate and trust administration, and representation of beneficiaries.

Nancy Carroll, P.C. also handles: wills, basic marital trusts and family trusts, retirement plan and life insurance beneficiary designations, and financial and health care powers of attorney.

Call us today: 817-310-0136

If you feel that you have been the victim of a wrongful foreclosure, below are five things that you can do right now.

1. Document any cases where your mortgage service company may have misapplied your payments, escrow account was charged incorrectly, payments during a bankruptcy were incorrectly applied to your loan, a forbearance agreement or another type of agreement has been disregarded, your interest rate was incorrectly adjusted, or lender or servicer accepted a partial payment but then continued with a foreclosure.
2. Contact an attorney that specializes in wrongful foreclosure. This is a very important first step because these attorneys have years of experience in dealing with wrongful foreclosures and can let you know if your case is legitimate and qualifies as a wrongful foreclosure. Your attorney can also help you seek damages and potentially keep your home. If you are looking for a foreclosure attorney in the Colleyville, TX area, call Nancy Carroll, PC: 817-310-0136.
3. Put together other records if your case qualifies such as receipts, bank statements, mortgage statements, communications to and from the lender or servicing company, telephone records, and other personal records
4.  If your property has been purchased, gather information on the new homeowners and provide such information to your attorney.
5. Do not respond to any correspondence directly once you have secured an attorney.

How Can Nancy Carroll, PC Help?

Wrongful Foreclosure

We will help protect your property by defending against wrongful seizure and help you seek damages. If you feel that you are a victim of a wrongful foreclosure, contact us immediately so that we can determine the legitimacy of your case and take the necessary steps that you may keep your home.

Receiverships to Stop Foreclosures

Have us appointed as receiver of the home & in most cases we can help divorcing homeowners avoid foreclosure & negotiate short sales with little or no upfront cost.

Homeowners Rights Against HOAs

Our experienced team will defend your rights and have a history of successful HOA foreclosure redemptions.

Call us today: 817-732-1515

Escrow companies handle the funds in a real estate transaction and are considered neutral parties. These parties are also part of ensuring the final transactions are complete. If complications arise such as fraud, overcharging, misuse of funds, charging improper fees, and/or misrepresentation of information, Nancy Carroll, PC can represent you in these cases. Get started with a free phone consultation here.

Sometimes it can be difficult to find trusting parties, accredited title insurance companies, and escrow services. Nancy Carroll, P.C. has an in-house Reunion Title fee attorney office and handle numerous commercial and residential closings a month ranging from purchases, refinances, short sales to reverse mortgages.

Our attorneys serve on advisory boards for the Texas Real Estate Commission (TREC) and as approved attorneys for AARP.

More information on escrow and title insurance:

Consider the following examples of the use of escrow and title insurance. A seller owns her real property residence free and clear of any liens. After the purchase and sale contract is signed, one of the agents (usually the agent of the seller) will open an escrow. Each party to the escrow (e.g. the seller, the buyer, the lender) will submit escrow instructions to the escrow describing that party’s requirements for how the transaction is to proceed.  See our sample lender’s Escrow Instructions, buyer’s Escrow Instructions, and seller’s Escrow Instructions.  For example, the instructions will require the seller to execute and deliver to the escrow a deed to the property and instruct the escrow to deliver that deed to the buyer when the escrow can deliver the purchase price to the seller (less title insurance premium and other closing costs that the seller has agreed to pay). The instructions will require the buyer to deliver her down payment to escrow and instruct the escrow to deliver that money to the seller when the escrow is ready and able both to record the deed in the buyer’s favor and to deliver to the buyer a policy of title insurance insuring the buyer’s title to the property against unknown and undisclosed liens. The buyer’s lender will “fund” the escrow with loan proceeds when the escrow is able to record both a deed executed by the seller in the buyer’s favor and a deed of trust executed by the buyer in favor of the lender and when the escrow is able to deliver to the lender a policy of title insurance insuring the buyer’s clear title to the property.

If the seller owns the residence subject to two deeds of trust, the buyer most likely will be unwilling to purchase the property unless these encumbrances are removed. Therefore, the lenders of the money secured by these existing deeds of trust will submit deeds of reconveyance to the escrow with instructions that the escrow may record these deeds of reconveyance (thus extinguishing the liens) when the escrow is holding money for their account to pay the balance due on their notes. The seller will receive from escrow the purchase price less closing costs and less amounts paid to the holders of these prior deeds of trust.

Examples from here.

To learn how Nancy Carroll, PC can help you with Texas title insurances, title law, and real estate transactions in the Colleyville area, please contact us today.

The term “short sale” is often tossed around without the appropriate clarifications. Today, the short sale specialists of Nancy Carroll, PC will answer some frequently asked questions about short sales.

—-

Q: What is a Short Sale?

A: Basically, a short sale is where the bank allows you to sell your home for less than the amount owed on your home loan. In order to do this, the bank must grant you this opportunity. Banks are not required to allow you to have a short sale.

Bank of America defines a short sale as the following:

“If you want to sell your house but it’s worth less than the amount remaining on the mortgage, a short sale may allow you to sell your house and settle your mortgage debt.

By completing a short sale rather than allowing your house to go through foreclosure, you avoid eviction and your house will not be sold at a public sale or auction.”

Q: What Are the Benefits of a Short Sale?

A:

• Avoiding foreclosure and the subsequent consequences.
• Avoiding bankruptcy and the associated stigmas including public filings.
• Eliminating loan balances.
• Wraping up a bad investment.
• Liquidating a declining asset.

 —

Q: If I Stop Making Payments Will My Bank Be More Likely to Grant Me A Short Sale?

A: No. Some people feel that if the bank sees there is “need” or in order to make up for money that they have not been paid, they will be more likely to allow you to conduct a short sale. This is not true, as these variables differ between lenders. Before you stop making your payments, contact us for a free phone consult.

  —

Q: What Type of “Hardships” to Lenders Consider for Short Sales?

A: Theses can vary, but some popular situations include:

• Job Lost or Significant Income Loss
• Divorce or Split of Domestic Partnership
• Family Illness or Injury
• Illness or Injury in Extended Family
• Job Relocation
• Unforeseen Increase in Living Expenses
• Adjustment in Mortgage Payment

 —

Q: I Have Two Loans – Can I Still Do a Short Sale?

A: Yes, you can. We can work with both lenders in order to come to an agreement.

  —

Q: Will A Short Sale Affect My Credit Score?

A: There is no static answer to this as every situation is unique. If there is deficiency then this amount may affect your credit. It is very possible to minimize the impact on your credit score by using the proper resources such as a short sale attorney.

A short sale may appear on your credit report as “paid in full for less than agreed,” but there are other factors that can occur.

 —

Q: Do I Need A Lawyer for a Short Sale?

A: Short sales can be very complex, and at some point you will need good legal advice. If you have assets besides the property in question, disposable outside income, are facing personal liability for a loan, or have a spouse, then a hiring a lawyer to negotiate the short sale on your behalf would be the best option to help avoid serious complications and foreclosure.

In addition, because short sales are a privilege, they can be very difficult to arrange. The job of your attorney will be to convince your lender that a short sale is a better financial option that a foreclosure.

There are many other factors that can affect your short sale situation. To get your questions answered a free consultation would be a great initial step.

 —

They Key to a Successful Short Sale

Short sales can be difficult, and the success rates of people trying to go it alone can be very discouraging. Nancy Carroll, PC wants to increase your likelihood of success! Our team has negotiated hundreds of successful short sales.

If you want to avoid foreclosure, eliminate mortgage debt, and minimize the damage to your credit during a short sale, contact us today!

We are licensed Texas short sale attorney specializing in Texas short sales.

Call today: 817-732-1515 or email: ncarroll@txtitleattorney.com

There has been much news circulating around a new tax called The Patient Protection and Affordable Care Act (PPCA) which imposes a 3.8% sales tax on all real estate transactions. Now, there is much confusion regarding the bill, and the attorneys of Nancy Carroll, PC will explain this act to you fully.

The first thing to understand is that this new tax will only affect a very small percentage of the population. One of the circulating theories is that this sales tax is being reported to be the same as the Medicare tax. It must be said, though, that the Medicare tax is not the same as the sales tax. Though the bill will affect a very small population of real state owners, the bill does not in any way indicate that all real estate transactions are subject to a 3.8% sales tax.

Before fully forming an opinion about newly implemented law, it’s important to understand first the provisions of the law. First, only those with an income of $200,000 a year for individuals and $250,000 combined income for married couples are eligible for the sales tax. ($200,000 individuals, $250,000 married filing joint return, or $125,000 married filing separate returns)

This bill will affect the high-income citizens more than anything. Second, they are only subjected to the 3.8% sales tax if and only if the profits from the sale of a personal residence exceed the amounts specified in the bill. Meaning, the first $250,000 in profit in the sale of a personal residence—in the case of a married couple, $500,000—is excluded from taxable income. This means that if a personal residence is sold for less than $250,000, it is not subjected to the 3.8% sales tax. Even if the individual who sold the resident has an income of more than $200,000, the sales tax will still not affect the profit.

For an estate or trust, the tax is 3.8% of the lesser of undistributed net investment income or the excess of AGI over the dollar amount at which the highest income tax bracket applies. For net investment income it includes gross income from interest, dividends, royalties, rents, and net capital gains and  for an estate or trust, the tax is 3.8% of the lesser of undistributed net investment income or the excess of AGI over the dollar amount at which the highest income tax bracket applies. Gross income from interest, dividends, royalties, rents, and net capital gains are included in net investment income while interest on tax-exempt bonds, veterans’ benefits, excluded gain from the sale of a principle residence, distributions from retirement plans, or amounts subject to self-employment taxes does not included in investment income.

Another important thing to note is that it’s still possible to be exempt from the sales tax despite the income and profit qualifying in the statements above. The seller must have used the house as his “main home” and have owned it for two out of the five years.

The tax is set to be implemented on December 31, 2012.

This blog post is sponsored by Nancy Carroll, P.C. – www.TxTitleAttorney.com.

The attorneys and staff at Nancy Carroll, P.C. have successfully negotiated hundreds of cases including short sales negotiations, foreclosures, receiverships to stop foreclosures, homeowners’ rights, and more.

Schedule a free phone consultation with your Texas Title Attorney / Real Estate Attorney:

817-310-0136 – Title            817-732-1515 – Law

A meeting was held where stakeholders provided their thoughts on the payoff statement regulations. They voiced how the new set of rules can be improved, for instance that the “loan type” item should be removed from the form to avoid confusion for people who are not familiar with the industry. While this line item wasn’t removed from the form completely, a compromise was reached where “loan type” is now optional.

Other concerns also resulted in adaptations to the new regulations. For instance “One commenter suggested the form indicate that the form must be sent to the mortgage servicer’s designated address and appropriate contact person for requesting payoff statement information, if either is so designated. Another commenter suggested this include e-mail addresses. The Commission accepted these comments and incorporated the suggested changes into the new rule.”

Or in this instance where, “One commenter suggested the form include a notice stating that the statute provides mortgage servicers with at least seven business days after the date the payoff statement is received to provide the payoff statement to the requesting title company. To enhance clarity and ease transition to requirements under the new rule, the Commission accepted this comment and has modified the form to include a notice of the time requirement prescribed by the new rule.” [Source]

The standard payoff statement form is what mortgage services must use when issuing the official payoff statement to a title company’s request for a home loan. The terms of this agreement also include the number of days a mortgage service official must deliver this statement.

Generally, the Payoff Statement Form includes the name of the mortgage holders, the physical address of the loan’s underlying collateral, and the proposed closing date of the loan. The form also asks for such things as the payoff amount and sufficient information about the loan. Other information such as the adjustable rate mortgage information is only needed when applicable.

It’s pretty hard to digest but it’s important to understand all the underlying significance of the adopted rules for the payoff statements and how everyone has been affected.

The new rules have been effective since January 8, 2012.

1) is the current mortgage VA or FHA guaranteed; and

2) if not a VA or FHA guaranteed mortgage; then always determine if the loan is structured as an 80/20 with two mortgages and no PMI (Private Mortgage Insurance).

VA, FHA and non-PMI loans have a much higher rate of short sale negotiating success if you understand the guarantee process and what the lenders/investors are looking to accomplish behind the scenes.