DEAR BOB: You havesaid several times the way to convey title to real estate into a living trustis by a quitclaim deed signed and notarized by the owner. That’s what we did.But now we want to sell our house, which is in our living trust. How do we dothat? –Janet Y.
DEAR JANET: That’seasy. Presuming you are the trustee of your own revocable living trust, yousimply sign the deed as trustee.
Purchase Bob Bruss reports online.
For example, youwould sign the deed “Janet Y., trustee.” However, before doing so,check with the title company that will be insuring the title for your buyer. Itmight be necessary to produce a copy of your living trust for the titleinsurer.
HOW TO USE AREVERSE MORTGAGE TO BUY A RETIREMENT HOME
DEAR BOB: As Irecall, about a year ago you wrote about reverse mortgages. I think you said areverse mortgage can be used to buy a retirement home. How does that work sothere are no monthly payments? –John R.
DEAR JOHN: The onlyreverse mortgages for home purchase are available from Fannie Mae. The othertwo reverse-mortgage lenders, Financial Freedom Plan and FHA (HECM), do notoffer these mortgages to buy a retirement home.
For details, pleaseconsult a reverse-mortgage originator offering Fannie Mae reverse mortgages. Asa general rule, you will need to make a cash down payment of about 50 percentof the home’s purchase price. Of course, you must be 62 or older. To find alocal Fannie Mae reverse-mortgage originator, go to
MORTGAGE LENDERDOESN’T HAVE TO CANCEL P.M.I. AFTER A YEAR
DEAR BOB: We refinanced our home loan in 2005 for 90percent of its market value. As a result, we had to pay PMI (private mortgageinsurance) of about $193 per month. The mortgage broker told me that when wehave 20 percent equity we can cancel the PMI. We did some major remodeling anda room addition. Now we have about 25 percent equity and the PMI is a totalwaste of money. But the mortgage company refuses to cancel our PMI because ourloan isn’t 24 months old. Is this legal? –Todd W.
DEAR TODD: Yes. Ifyour mortgage was sold in the secondary mortgage market to Fannie Mae orFreddie Mac, their guidelines allow PMI cancellation after 24 months of on-timemonthly payments if your equity exceeds 20 percent. You obviously don’t yetmeet the 24-month test, so just be patient.
The new RobertBruss special report, “The 20 Essential Questions Smart Home Buyers MustAsk to Avoid Overpaying in a Buyer’s Market,” is now available for $5 fromRobert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at1-800-736-1736 or instant Internet delivery at
(For more information on Bob Bruss publications, visit his
Real Estate Center).
Copyright 2006Inman News