Category: Uncategorized

Why a Homestead Declaration is needed

Posted on August 13, 2019 by - Homestead Declaration, Informative, Real Estate, Uncategorized

With Direct Signings Direct Deeds, we ensure you get the best when it comes to the numerous services that we offer including filing a Homestead Declaration. The importance of a Homestead Declaration is extremely valuable as it shields your home from any attacks from creditors which is why we’re happy to clarify why you should consider filing. Unfortunately, a forced sale of your home could be a result of bankruptcy, unpaid medical bills, credit card debts, and business/personal loans. Here at Direct Signings Direct Deeds, we walk you through the steps of the application and make sure you not only feel protected but are.

To start the process, a Homestead Declaration is filed with the County Recorder. Though there are requirements that need to be met in order to file one; a land with a dwelling house including any fixtures or building, a mobile home that is not contingent on if the owner owns the land where the home is located or a condominium unit. If any of those requirements are you, congratulations, you can get started on filing! First, let’s access exactly what home equity is as it transitions into what a Homestead Declaration does.

Home equity, also sometimes called as “real property value”, is a homeowner’s interest in a home which increases over time due to the value of the property, or it can also depend on how much the mortgage loan balance is paid down. How this relates to filing a Home Declaration? Well, filing can actually protect up to $550,000 of your home’s equity! Please note, if your equity does exceed $550,000, it does not prevent a seizure or judgment via a forced sale on your home from creditors. Additionally, it does not protect you from all debts including child support, IRS lien, payment of taxes, mechanic’s lien, or your mortgage or deed of trust.

Please know, under Nevada’s Revised Statutes, Chapter 115 is what governs the declaration of a homestead. To declare, you must make sure you assign the designation of the homestead in the desired protected property before any forced sale begins. We know this can be quite a bit of information, but remember a Homestead Declaration is a powerful and important resource to have. We want to help ease the long process and help in preparing your Homestead Declaration! We can assist you with the preparation, notarization, and recording with a preparation fee of only $125! We want you to know we are here for you and your home because we understand how relaxing it is to you are protected. For further information, please see our page on how to get started on your Homestead Declaration.

Please don’t hesitate to call 888.635.6471 to get started!

Joint Tenancy Explained

Posted on August 9, 2019 by - Uncategorized

Joint Tenancy Explained

Most people immediately think of the right of survivorship aspect of the Joint Tenancy, which allows the shares of a property to be transferred to the surviving partner. However, there is a bit more to Joint Tenancy.

To start a joint tenancy there specific requirements that have to be met, starting with time, interest, possession, and title. Meaning that the owners must become join tenants of the same deed at the same time and take possession of the asset at the same time. Owning property using a joint tenancy has its advantages that we will outline below.

Profits and Rights to Rent

Joint tenants are generally given a share of the rent and any other profits that the property may receive.

Avoiding Probate

If one of the partners in the Joint Tenancy passes away and that partner has few additional assets at the time of their death, having a joint tenant with the right of survivorship may allow the late individual’s estate to avoid probate. Most states have a small estate statute that allows a survivor to bypass the process when the probate estate is under a specific value.

Right to Surviorship

A Joint tenancy allows the other tenant to inherit the decedent’s share at the time of passing. This typically involves a process that is automated and requires minimal paperwork to transfer.

What Is a Promissory Note?

Posted on August 2, 2019 by - Uncategorized

Promissory Note for Loan Graphical Example

The Promissory Note

The format of promissory notes differs per lender, however the idea is the same. The opening paragraph identifies the lender and borrower. The note will describe the terms of the deal including principal amount, interest rate and maturity date. Following the terms, the document will list several recitals. A recital is a statement of the facts contained within the transaction. With a secure note, one of the recitals will describe the security instrument. A security instrument can be a number of documents including a mortgage, assignment, security agreement, or a pledge agreement. It will read similar to, “Whereas the borrower has entered into a Security Agreement dated July 31, 2019 as collateral for the loan.”. This clause ties the promissory note and security agreement together, in effect collateralizing the loan.

Non-Payment

If a borrower begins to miss payments on a secured note, they will incur late charges. If the borrower exceeds 90 days of non-payment, the loan will be declared in default. If this happens, the lender will begin can pursue legal action. The process can depend on a number of factors including the type of loan, the collateral and the state judicial process. When completed, ownership of the collateral will be transfered to the bank. The lender will likely have legal expenses, and will usually work with a borrower in default before exercising its rights to the collateral. It may lower the interest rate, extend the repayment term or institute a temporary period where the borrower pays only the interest.

Flexibility

A key benefit that a promissory note provides both parties, is flexibility. Promissory notes allow you to specify how payments will be made whether in installments, at a future point in time or due upon signing. You can fully amortize the loan and make the payments on monthly schedule, or you can make equal payments due on a quarterly or semi-annual basis. This flexibility allows you to specify loan terms that best fits your needs or the needs of your company.

A few Advantages of Homesteading Your Property

Posted on July 12, 2019 by - Uncategorized

Sold Home in Las Vegas, Nevada - Direct Signings Direct Deeds

What Are the Advantages of Homesteading Your Property?

Homeowners have access to filing a homestead exemption. Basically, a homestead exemption allows you the homeowner to protect the value of your principal residence from creditors and property taxes. A homestead exemption can also protect a surviving spouse when the other homeowner dies.

Property Taxes

A homeowner’s understanding when it comes to homesteading their property most often has to do with the property-tax exemption. This advantage of homesteading pertains to protecting a portion of a home’s value from property taxes. A typical homesteading advantage is that it will exempt the first $25,000 to $75,000 of a home’s value from all property taxes. With a $50,000 homesteading exemption, you’ll only owe property taxes on the home’s remaining assessed value.

Forced Sale Immunity

With a homestead exemption, your home is shielded from a forced sale to satisfy creditors. The lender financing your automobile can’t force the sale of your home if you default on your auto loan. Homestead exemptions, however, don’t normally shield your home from forced sale in mortgage foreclosures or from defaulted property taxes.

Surviving Spouse Advantages

State homestead laws vary, but surviving spouses under homestead laws retain the homestead right to their homes for life. For surviving spouses, as long as they use and occupy the homesteaded property, they won’t lose homestead rights. Surviving spouses on homesteaded properties, though, must make any mortgage and other payments due in order to retain their homesteading rights.

Homestead Requirements

In order to declare a homestead on your home, it must be your principal residence. Your homestead exemption and its advantages last until you effectively abandon the homestead, too. Commonly, you abandon an old homestead when you declare another home your new homestead.