Home > Blogs > Doug Jones' Blog
61,987 views

Doug Jones' Blog

By Doug Jones | Mortgage Broker
or Lender in 95126
  • If you every take a property out of trust...this is a good law to know

    Posted Under: Agent2Agent in California  |  June 26, 2012 1:02 PM  |  336 views  |  No comments
    Years ago I wrote a loan and we took the property out of trust and the title company was to put the property back into trust after the loan funded. I found out a year later that the title company never put the property back into the trust. I was lucky because everyone remained healthy during the year. I could have verified from that time on but the situation made me nervous and from that time on I always have always gone to the county myself and done the paperwork. Once I wrote an eight million dollar residential loan and we took the property out of trust and then I drove to the county to make sure the property was back in trust---but during the three days I was actually nervous !
     
    Today every bank that I work with allows the customer to get a real estate loan and to keep the property in trust. A few years ago that was not true and many times we had to have the customer take the real estate out of trust and then when the loan funded put the real estate back into the trust. This morning a financial planner told me that her client had died and a lender took the property out of trust and forgot to put the real estate back into the trust. We were lucky because one person in our group is a trust attorney and he told us that the family could file a Heggstad Petition and not have to pay probate taxes. Below is some information about the Heggstad Petition.
     
    The Heggstad Petition for California is used when someone has listed certain assets in a revocable living trust but did not actually transfer title to the assets in the name of the trust. The Petition requests that the Court determine that the asset is actually the property of the Trust, thus avoiding lengthy probate proceedings.

    But what if you forget to transfer a significant asset to your trust during your lifetime? Is your family stuck with a very expensive and time-consuming probate proceeding? Maybe not. If you include that asset in a property schedule – such as a Schedule A to your trust – then, under some circumstances, you can get out of the costly probate proceedings by using what is called a Heggstad Petition (named after a 1993 California case Estate of Heggstad, 16 CA4th 943, 20 CR2d 433).

    The Heggstad Petition seeks to obtain a court judgment that an asset held in the deceased person’s name is actually owned by the trust because the asset was intended to be transferred to the trust. The usual basis for such a petition is that the asset was listed in a property schedule. If the petition is granted, the court issues an order declaring that the asset is in fact trust property and orders the asset transferred to the trustee. It is therefore important to update the property schedules attached to your trust – just in case.

    It is good that the law is in place but I recommend that if you are in a situation where the property must come out of trust for a short while ...I suggest that you take the papers yourself to the county to make sure that the property goes back into the trust.



  • Mortgage Fraud - Don't Go There

    Posted Under: Agent2Agent in California  |  June 25, 2012 1:19 PM  |  288 views  |  2 comments

     
    Mortgage Fraud-- Don't Go there !
     
    I continue to be surprised that there is still mortgage fraud. And, I am further surprised to note that California (my state) ranks number 2 among all states for the highest amount of risk fraud.
     
    The areas of risk fraud are value, identify, occupancy, and employment and income. Words of advice: IF it is not true don't put it on the application...More words of advice: Do not omit anything from the application.
     
    I don't want to be involved with any type of fraud-- I could be fined or lose my license or even go to jail without passing Go!  You don't want to be involved with any type of fraud....It is a Crime.
     
    Today lenders check everything....the customers employment  is re-checked just before the loan funds....a form is sent to the IRS to verify taxes...
     
    Put everything on the loan application. Suppose a customer earns a salary and qualifies for the loan. But, on the side the customer has a business. That side business must also be listed because the bank needs to know what the risks and debts are to that business.
     
    Sometimes the underwriting may not seem fair. But, if you are going to play baseball in the major leagues you follow their rules because you are playing on their field. The banks have the money---- you are playing on their field.
     
    Being completely honest serves us all well. If everyone was honest the loans would go thru quicker and smoother, the rates would hold low, and clients and banks would have a better relationship.
     
    If you are tempted to fudge just a little bit------------don't do it. The stress alone is not worth the aggravation.
     
  • I am back in the Jumbo Market (fingers crossed; hope it stays)

    Posted Under: Home Buying in California, Financing in California, Agent2Agent in California  |  May 31, 2012 8:30 AM  |  376 views  |  No comments
    Logo
    Bag of Money

    In 1981 I did my first very big loan
    it was a $1,000,000 second mortgage
    in Hollywood to a national and world celebrity
    entertainer...
     
    Before the crash in April of 2007 I wrote an
    $8,500,000 residential loan
     
    Last week we got a $1,000,000 loan approved
    in one day
     
    I am an expert and comfortable with Jumbo loans


     
    My Photo
    Doug Jones MLO 286668
    Mortgage Magic
     
    (408) 975-2400 x 110


     
         


    The information in this flyer is believed reliable, but is not warranted or guaranteed, and before any reliance or use should be independently verified. Suggestions, advice, strategies and all other like information are general in nature, are not based on knowledge of your specific circumstances, and should be used only after your own independent verification of reliability, application of independent business judgment and due consultation with your tax, technical, legal, real estate, investment, accounting and/or other professional advisors.

    Hud Logo Mortgage Magic
    Doug Jones
    1625 The Alameda Suite 900  San Jose, CA 95126
    NAR Logo
  • It is ethical to belong to more than one network group?

    Posted Under: Agent2Agent in California  |  May 22, 2012 10:15 AM  |  298 views  |  2 comments

    It makes sense for Realtors and Mortgage Brokers to be part of a business network group. I am part of a group Top Flight Business Network Group | In San Jose CA .
     
    Recently I did a presentation at a Chamber of Commerce and noticed that some Realtors and Mortgage Brokers are members of several network groups.
     
    So my question. Is that ethical?
     
    I guess I am old fashioned and believe in the adage that you can't serve two masters.
     
    Let me know your thoughts.
     
  • Turned down by HARP 2.0? Call Fannie or Freddie

    Posted Under: Agent2Agent in California  |  May 16, 2012 8:44 AM  |  328 views  |  No comments

    At this time 80% of our HARP 2.0 loans are being turned down and we cannot determine reasons. I complained to one bank about a customer who is 150% loan to value (within guidelines) 47% debt ratio (within guidelines) and a credit score of 659 (within guidelines). The reply that came back is that Fannie set up the Desktop Underwriting program and there is nothing the bank can do about it. The reply ended with "contact Fannie". So I am going to be contacting Fannie or Freddie about every turn down that fits their guidelines. You can too. If you or someone you know has been turned down and the guidelines fit then contact Fannie or Freddie. Here is the Fannie contact information.
     
     

    Fannie Mae Resource Center for Consumers

    1-800-7FANNIE (1-800-732-6643)

    Written Correspondence

    Fannie Mae
    3900 Wisconsin Avenue, NW
    Washington, DC 20016-2892

    Fannie Mae Resource Center
    An answer center for consumer inquiries. We research and respond to inquiries about Fannie Mae's underwriting and servicing policies and mortgage products. We also welcome your feedback about our Web site.  E-mail the Fannie Mae Resource Center or call 1-800-7FANNIE (1-800-732-6643). 

    Home buyers and homeowners looking for information about a Fannie Mae lender or mortgage, please e-mail the Fannie Mae Resource Center or call 1-(800)-7FANNIE (1-800-732-6643).

    Doug Jones
    Mortgage Magic
    MLO 286668


  • Unlocking Social Security

    Posted Under: Agent2Agent in California  |  May 14, 2012 11:14 AM  |  333 views  |  No comments
    Here are two upcoming financial events in Santa Clara County.

    Unlocking Social Security workshop  May 22 at the Campbell Community Center, 1 West Campbell Ave room E42. RSVP to Solutions Wealth Management (408) 370-3303 5:30-7:30 PM   no charge
     
    Economic Outlook- John E. Silvia - Chief Economist for Wells Fargo Bank. May 29th at Menlo College, 1000 El Camino Real, Atherton, Calif Russell Center in El Camino Hall  11:30-2:00 Lunch $30  RSVP Anne M Wenzel 650-233-9613 -this is a regular meeting for the National Association for Business Economics - public invited.
  • Unlocking Social Security

    Posted Under: Agent2Agent in California  |  May 14, 2012 11:14 AM  |  262 views  |  No comments
    Here are two upcoming financial events in Santa Clara County.

    Unlocking Social Security workshop  May 22 at the Campbell Community Center, 1 West Campbell Ave room E42. RSVP to Solutions Wealth Management (408) 370-3303 5:30-7:30 PM   no charge
     
    Economic Outlook- John E. Silvia - Chief Economist for Wells Fargo Bank. May 29th at Menlo College, 1000 El Camino Real, Atherton, Calif Russell Center in El Camino Hall  11:30-2:00 Lunch $30  RSVP Anne M Wenzel 650-233-9613 -this is a regular meeting for the National Association for Business Economics - public invited.
« Read older posts
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer