Closing costs traditionally refer to fees charged by mortgage companies and third parties. Pre-paid expenses and escrows are also included in closing settlement statements and are sometimes mistakened as closing costs, but they are technically a separate category. Details of pre-paid expenses and escrows for Burlington MA loan closings is provided in this article.

Pre-paid Expenses

Pre-paid expenses are items that must be paid at closing but technically cover a future period of time. Common pre-paid charges are insurance and interest. Homeowners insurance consists of a yearly premium that must be paid up-front. Some buyers submit payment for the amount directly to the insurance provider prior to the closing, while some do so at the closing. Interest is another pre-paid expense. Mortgage payments are usually paid in arrears, meaning that they cover a past month. For instance, if you closed on a home January 15th, your first mortgage payment would not be due until March 1st, and it applies to the February time frame. So there is no payment to cover January 15th-31st. The interest for that period of time is charged at the closing as pre-paid interest.

Escrows for Home Purchases

Escrows are payments held in a holding account, known as an escrow account, and disbursed when needed. They are used to cover recurring fees such as private mortgage insurance (PMI), real estate taxes, and homeowners insurance. Each month, as part of the monthly mortgage payment, a certain amount is directed into the escrow account. When PMI, taxes, or insurance payments are due, the appropriate amount is taken from the escrow account. This accomplishes two goals. First, it removes the difficulty of home buyers having to save for the large fees. Secondly, the mortgagor ensures that the payments are made, which preserves their interest in the property. Escrows are not required by all lenders, but it is typical for mortgages with small down payments.

Details Of Pre-paid Expenses And Escrows For Burlington MA Loan Closings

The amount of pre-paid expenses and escrows will differ depending on the season or time of month. Closing near the end of a month will minimize pre-paid interest. Pre-paid taxes and escrows will depend on the community and when tax bills are due. If minimizing funds required for closing is critical, discuss the time lines with your real estate agent and mortgage advisor. For additional resources or assistance on the above “Details Of Pre-paid Expenses And Escrows For Burlington MA Loan Closings”, you may reach Peter DaMore at Law Offices of Peter T. DaMore Jr. via phone at 781-229-7900 or email at pdamore@ptdlaw.com.

Homestead protection is provided to MA property owners and shelters them from unsecured creditors. This is a vital law for any homeowner. The MA homestead law details below addresses the most important components of this law.

Why Property Owners Need This Protection

Property owners gain equity in a home over time. This equity may not be much initially, but can grow to a larger value over time. There are scenarios where creditors or other parties will target that equity to fulfill a financial obligation of an individual. Shielding it can be critical.

Imagine you are in a car accident and the other party sues you and wins, and the damages are beyond the dollar value of your insurance. Your assets, such as real estate, may be used to cover your financial obligation. This is merely one example of many different situations where homestead protection could save you from losing equity.

MA Homestead Law Details

Massachusetts homeowners get an automatic protection of one-hundred and twenty-five thousand dollars (125,000) without filing any forms. A Declaration of Homestead may be filed at the registry of deeds in the county where your primary residence is located to extend the dollar value up to five hundred thousand dollars (500,000). The filing involves a specific form and payment of a filing fee, which differs from county to county but is typically less than one-hundred (100) dollars. If you are purchasing a new home, your closing attorney will provide the information to you.

Other Details

Homestead protection strictly applies to a primary residence. There are special provisions for individuals over the age of sixty-two (62) and disabled persons. The Homestead Law will not cover all creditors or lawsuits. Exceptions do apply, such as municipal tax assessments, mortgages on the home, and probate court decisions, just to list a few. For complete details on this law, visit the Secretary of State website. The information in this blog is provided as an overview using facts available at the given time. It is subject to change without notice (as changes may apply to the Homestead law). Please always visit the website link included above for current facts.

Owners title insurance is an elective expense when purchasing or refinancing a property. It only needs to be bought once by a homeowner and will guard against title issues for the entire time that they own a property. Understanding what title defects include will help homeowners decide whether to purchase title insurance. Title problems and the importance of title insurance in MA can be found below.

What Are Title Defects

Title defects are not typical but they can have a significant impact if they do exist. Defects are conditions that call into question the legal owner of a piece of real estate. Even though a title search is completed in most property transfers, some problems are not easily found and can stay hidden for many years and through several transfers of ownership. Any uncovered issues must typically be resolved before the completion of a sale, but in situations where they are not detected, title insurance protects the owner of the home.

Title Issues Covered by Title Insurance

Title issues describe a wide range of scenarios. Below are just a few examples (keep in mind that this can vary based on the insurance company).

• Missing Parties
• Unrecorded Liens
• Unfiled Releases
• Failure to Follow Proper Recording Instructions
• Unrecorded Encumbrances
• Undisclosed Heirs
• Forgery
• Mental Incompetence of a Signing Party
• Mistaken Identity
• Problematic Deeds

Title Problems And The Importance Of Title Insurance

If you purchased an owners title insurance policy, the insurance agent will either handle the issue or reimburse you for resulting losses. It may even help defend a law suit jeopardizing your ownership rights. Policies are bought based on a particular dollar value, so maximum limits do apply. Additionally, specific issues may be exclusions on your policy. Ask your closing attorney for a full list and for additional details on title problems and the importance of title insurance in MA. In the End, owners title insurance is the best protectopn of your ownership rights to a property. Even though the fee can be high, it is payable only one-time and covers you and your heirs for as long as you own a home. It is certainly worth the cost given that a home purchase can be the biggest single investment that you make.

Ownership of a property is identified by its title. When real estate is sold, the title is transferred from one party to another. It is therefore a critical part of a property transaction. This blog provides information on title searches for MA home purchases, what it is, and why it is significant.

Definition of Title

Title is paperwork detailing the ownership and use rights of real estate. It is not one particular document but a history of documentation such as deeds, legal documents, property indexes, loans, etc. These are recorded at the local Registry of Deeds and is publicly available.

Title Searches For MA Home Purchases

A title search is a thorough examination of historical documents relating to a certain property. It starts with the present owners and traces back to preceding owners. The goal of the title search is to discover any issues or outstanding claims on a property. The ultimate goal is to confirm that a seller has the ability to grant ownership to another party.

Possible Title Issues

A title search can uncover problems such as a property lien not being released, unpaid taxes, and judgments against the owner. Some of these can be quickly fixed prior to the scheduled closing while others can take more time and effort to clear. Also, rare problems may be concealed and not easily found even with a thorough title search. Some examples are forgeries, misrepresented facts, inaccurate deeds, and clerical errors. These can stay hidden for several years and may jeopardize the rights of the current owner when finally exposed. Title insurance is designed to cover this risk but may not include coverage for every scenario.

Importance of Title Searches

Title searches are a crucial part of the property purchase process and are generally performed by a closing attorney or closing agent. No matter how meticulous a title search may be, it is worthwhile for home buyers to consider buying title insurance to cover hidden issues. Speak to your attorney for more advice on title searches for MA home purchases and to make an informed decision on title insurance.

There are a variety of fees associated with buying a property an explanation of lender closing fees in Burlington MA.

Lender Closing Fees

Points

Points are a way for buyers to get a lower interest rate. It involves paying interest up-front to ensure lower payments for the life of the mortgage. This option can be useful for homeowners who need a smaller payment in order to qualify.

Origination Charge

Origination charges vary from lender to lender. It typically covers the mortgage company processing of the mortgage Lender Closing Fees

The lender closing fees provided above are only a few of the actual charges that may be billed by your mortgage company. For a complete list of potential expenses that you may be responsible for, or for assistance with other real estate or mortgage needs, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. by calling 781-229-7900 or emailing pdamore@ptdlaw.com.

A closing represents the conclusion of all the work and documentation in the home purchase process. It is when the buyer becomes the owner of a property. A closing attorney performs the closing and has duties prior to the closing date. This article details Burlington MA closing attorney responsibilities.

Role of a Closing Attorney

A closing attorney is typically chosen by the mortgage company to compile paperwork and other activities for a closing. The attorney really acts on behalf of the mortgage company even though the buyer is responsible for paying the fee as included in closing costs. Some borrowers choose to employ that same individual to analyze paperwork such as purchase contracts on their behalf. However, they do have the freedom to find a separate attorney to act on their behalf.

Closing Attorney Duties Prior to Closing

The closing attorney is in charge of many tasks required in a real estate transaction. The first task is a title search. This is a review of town records on the real estate to confirm that the title is clear for transfer to a new owner. The second is compiling legal records for the property transfer and loan. Finally, they are required to also prepare settlement statements that detail the amounts for all individuals in the agreement. Each of these ensures a successful closing.

The Actual Closing

The closing attorney manages the actual closing by making sure the paperwork is signed and money is exchanged. The purchaser and seller are responsible for endorsing a series of paperwork, although the majority require solely the signature of the purchasers. Some documents are submitted into public record while others are retained by the lender. The other critical aspect of a closing is the transfer of funds. All charges and calcualtions are included in a settlement form supplied to both purchaser and seller. In many circumstances, money is channeled from the mortgage company to the closing attorney for appropriate accounting.

Burlington MA Closing Attorney Responsibilities

The official role of a closing attorney normally starts with a title search, but may at times also include review of paperwork such as condominium contracts or Purchase and Sales Agreements. It is important to keep in mind that they represent the lender in the transaction irrespective of who pays their fee. Buyers, Sellers, and real estate professionals must all work closely with a closing attorney to secure a successful closing.

An article about Foreclosing Party Must Be Note Holder Or “Acting On Behalf” Of Note Holder was published by JD Supra on June 28, 2012. The SJC Eaton Decision may change the way lenders conduct foreclosures in Massachusetts.

Excerpt of “Foreclosing Party Must Be Note Holder Or “Acting On Behalf” Of Note Holder”

On June 22, 2012, the SJC issued a decision in Eaton holding that a foreclosure by sale pursuant to a mortgage power of sale provision must be conducted by a mortgagee that either holds the underlying mortgage note or is acting on behalf of the note holder. The plaintiff in Eaton executed a promissory note in favor of BankUnited, FSB (BankUnited), when she refinanced her home. That same day, the plaintiff executed a mortgage that identified Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee, acting as the nominee of the lender, BankUnited. The mortgage contained a remedy provision that permitted the lender to invoke the statutory power of sale upon a default by the plaintiff. The mortgage also provided that MERS had the right as nominee for the lender, if necessary to comply with law or custom, . . . to foreclose and sell the Property; and to take an action required of Lender[.]

Click here to read the full article.

{

For additional information on this topic, contact Peter DaMore, Attorney at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or pdamore@ptdlaw.com.

First time buyers often ask about owners title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is traditionally optional. Buyers should consider the features and decide for themselves on whether the expense is worthwhile given the costs and coverage. The following are Massachusetts owners title insurance details.

Title Searches Are Not Perfect

Before closing, a title search is always performed by a title company. This determines that no other party has a right to the home (based on records on file) and that the title is available to be transferred to a new buyer. The title search is not fool proof and may not identify hidden risks in the title. Owners title insurance will protect you against title issues and the legal fees associated with protecting your rights to home.

Owners Title Insurance Coverage

Owners title insurance is a single charge at closing that will remain valid for the entire time that you retain ownership of the property. You can buy it at a later time, but it is normally less costly when bought at closing. The fee is based on the amount of the loan.

Massachusetts Owners Title Insurance Details and Coverage

Owners title insurance typical coverage includes…

• Misrepresentation related to the execution of past title transfers.
• Pressure on a seller or executor (of a will).
• False impersonation by those alleging to be owners of a home.
• Incorrect marital status of a seller.
• Mental Incapacity of grantors.
• Conveyance of a minor.
• Non-delivery of critical paperwork.
• Unsatisfied claims not mentioned inthe records.
• Mis-indexing at Registry of Deeds.
• Clerical glitches in recording legal documentation.
• Delivery of deeds after the death of a seller.
• Transfers executed under unauthorized powers of attorney.

Some policies may include…

• undisclosed heirs.
• Wills not properly probated.
• Incorrect interpretation of trusts.
• Birth of heirs after the date of a will.
• Incorrect property surveys.
• Inaccurate legal descriptions.
• Confusion fomr similar names.

The above information is merely an introduction. Consult a local title company for current Massachusetts owners title insurance details and pricing, as they typically vary based on the provider.