Ways to Protect your Credit – Part II

Published by cravat | Filed under Buyer / Seller Tips, Finance, Miscellaneous, Real Estate, Shout Outs, Uncategorized

After reviewing and assessing your credit standings, being able to separate all of your joint accountabilities. You may also want to reconsider the remaining options to be able to protect your name and your credit.

1. Refinancing your Property. Once you and your partner have reached an agreement that either one of you will retain the possession of the property, then the sensible action to do is to omit the remaining loan and change it completely to a one new loan, providing, of course, that you are not in the capacity to pay off the loan in cash. 

2. Revise the Deed. Consult with your lawyer and ask them to draft you a deed that assigns the title from one person to the other. These deeds are usually called quitclaim, warranty or a grant deed. 

3. Get a New Mortgage. A local bank, a credit institution or through a trusted mortgage broker are of one of the few places where you can get your mortgage. 

a)     If you are not qualified to take a new loan, you can either put the property on the market or get a co-signer such as asking your brother or sister or a relative to help you qualify.

b)    Should you owe your partner an equity, discuss with your partner if he or she would be prepared to let you acquire a bigger amount of loan to pay the existing charges and then carry a second loan for the amount loaned. In this way, you can settle the payments to your partner for the equity, probably at a much lower interest rate and a much agreeable terms that a lender would offer you.

c)     Remember that by applying for a new loan will need an appraisal to verify the value but since lenders have other reasons they are interested in you making a loan, you may want to talk to a committed real estate agent to get comparative sales for you. You do not expect your appraisals to be written in gold. You do not want to end up paying your partner more than the worth of the property and appraisals in refinancing usually results to higher values than you may claim upon resale.

d)    A new title policy usually comes in, in new mortgages. However, you will be insuring the lender and not yourself, it is a relative assurance that your other half has not further weighed down the property without you knowing it.  

3. Finally, Selling your House. 

a)     Keep in mind that you need to establish your market value. Find out how much your property is valued based on past comparative sales.

b)    Preparing your House for Sale. When you want to close a deal the soonest, remember to de-clutter your house, clean and pack unnecessary furniture and displays.

c)     Hire a Real Estate agent. You rather prefer hiring a professional and experienced agents instead of just listening to friends or relatives who knows little or none at all when it comes to real estate.

d)    Talk to at least three agents before you choose who to hire. When you research your market conditions, you may be able to sell your property on your own, though it is always difficult to do so when you are thinking of so many things and you may want to give it to the professionals.

e)     Do not publish your dissolution. Care for your privacy while your property is on the market. If potential buyers know the main reason for sale, buyers may give you a lower deal or offer. For any further legal advice, it is always best to go back to your lawyer.