Colony Title Group, Ltd.

Fractional ownership, shared ownership, better utilization of real estate use are the wave of the future. In today’s market with Sequestration diminishing some household incomes by up to twenty percent, there is a way for families to continue to own their homes. In our last newsletter, we broached the topic of families participating in the ownership of property. Case in point, daughter and son in law own a home, but due to a cut back in family income, the mortgage payment is becoming problematic. A better solution to the situation might be a co partner sharing the cost of the monthly obligation. Rather than losing the home, falling behind in the mortgage payments, the family partner supplements the obligations. Structuring a partnership wherein both parties benefit, makes sense for both parties.

Along the same line of thinking, a new concept of ownership of vacation homes has arisen. Fractional ownership makes perfect sense for an owner who wants to have a home where the family wants to spend time on a regular basis, but the property remains unused for the majority of the year. Why not own a fourth or fifth of a property with the ability to use the property two or three weeks every season, but only have the responsibility for one fifth of the upkeep rather than all. The upside compared to a time share is to have fee simple ownership and be able to take advantage of the tax deductions afforded and be able to realize a percentage of the appreciation in value as the property values prosper.

As the real estate market is rebounding, prices are stabilizing and will start to rise as supply and demand will compel that eventuality. Currently our interest rates remain at historic lows, but when they ultimately rise, the opportunity to profit from the real estate market will change. We see the opportunity now to acquire property either individually or in partnership as a unique situation. We are uniquely qualified to assist you as we have handled many acquisitions via partnerships, LLCs or corporations and are currently involved in a fractional ownership venture. If interested in any of these options please contact me to explore the opportunities.

Rates remain at the 3.5-4% range depending on the size of the loan and creditworthiness. Call us for details.

We have completed our relocation in the beautiful Symphony Woods Office Center at 5950 Symphony Wood Drive. Please drop by.

Our annual tennis tournament for the benefit for Shock Trauma will be on June 6. Please call for details.

As always we want to be your title company and real estate law resource. Email me at tee.tillman@colonytitle.com or call at 410 884 1160 ext 3007.

Homeownership comes with its advantages: having a space of your own, decorating according to your whims, and living out the all-American dream of having a yard. But there are some risks involved in owning a home that you don’t want to face, like dealing with a title defect left behind by a previous owner.

When buying a home, you’ll need title insurance so that you are free to enjoy the upsides of homeownership. It’ll ensure that you are free from any debts or obligations associated with the property, that you can use it as you wish to, and that when you want to sell, you can without issue.

Unlike most insurance policies, which are paid on a routine basis, title insurance is a one-time only, flat-fee that protects against issues such as:

• Forged title documents
• Undisclosed mortgage or lien
• Improperly recorded Deed
• False or incorrect legal descriptions

In short, title insurance will protect you from having to deal with any previous defects associated a home’s title, preventing you from facing claims that aren’t your fault.

The title insurance agents in Maryland at Colony Title Associates can help to insure you against title defects in the process of buying a new home.  Call us today at 410-884-1160 or visit ColonyTitle.com to get started.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Almost all lenders are required to purchase title insurance for their property, protecting them against any claims and legal fees that could potentially arise out of a problem with the title connected to the property. Lender’s title insurance safeguards the lender against charges made up to the total amount of the mortgage. Title insurance held by the lender protects only the lender against loss– not the borrower. It is, in other words, an indemnity policy.

The property owner will be covered under his title insurance for as long as he or his heirs have any investment in the real estate. This means that the lender is guaranteed protection until the loan is paid off in full. A one-time premium, purchasing title insurance is a cost-effective, hassle free means of avoiding problems like forged signatures in past title transfers, unpaid real estate or tax liens, and any other weak links that could cause a snag.

At Colony title, we’ll make sure you don’t risk running into any complications with your property’s title. Specializing in real estate title insurance in Maryland and DC, our agents will perform a title search, check all past documentation, and seek to uncover any fraud or forgery associated with the title. Any defects that can’t be accounted for will be covered by your title insurance, guaranteeing you won’t face any losses in the future.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

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Questions about Title Insurance

Real estate agents are considered the go-to experts and consultants in the home buying process, as they guide both homebuyers and sellers through real estate transactions. But in order for real estate agents to effectively handle all the paperwork associated with closing on a property, they often consult a title insurance company. Here are a few insights that explain why a title insurance company – in Maryland or elsewhere – can be a big help in making the transaction process smooth from beginning to end.

Why Real Estate Agents Need a Title Insurance Company

Coordination: Many title insurance companies don’t just perform title searches, but also coordinate each step of the settlement process to avoid headaches for real estate agents over technical documents.

Document Review: In the event that legal documents need to be looked over with a fine comb by legal experts, many title agents are also attorneys, and can handle the paperwork for you.

Title Insurance: What goes into the process of procuring title insurance? A title agent will perform a search on the property in order to protect homebuyers from any fraud, forgery, or incorrect documentation made in the past. Title insurance guards from any of these unforeseen claims made against a property.

The title insurance agents in Maryland at Colony Title can help real estate agents handle client transactions with ease.To learn more about our services, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410-884-1160 or visiting ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, Google+, and LinkedIn.

This fall, according to a recent Freddie Mac Primary Mortgage Market Survey, fixed mortgage rates shattered their former average record lows, maintaining the current level of real estate affordability for potential homebuyers. In support of the improving housing market, all mortgage products, with the exception of the five-year adjustable-rate mortgage (ARM), averaged unprecedented lows.

Chief economist and vice president of Freddie Mac, Frank Nothaft, attributes the recent decrease in mortgage rates to the Federal Reserve’s purchases of mortgage securities.

As of September 27, 2012, 30-year fixed-rate mortgage (FRM) averaged 3.40%, with an average 0.6 point, whereas last year at the same time, the fixed-rate mortgages were averaging 4.01%.

The 15-year FRM average during the same week was 2.71%, a 0.6 point drop from the week prior, when the rate averaged 2.76%. Just a year ago, the 5-year ARM was at 3.02%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage during September 27^th was at 2.71%, down from the previous week at 2.76%. One year ago, the average 5-year ARM was 3.02%.

Finally, of course, the 1-year Treasury-indexed ARM showed the same decrease during the last week of September, compared with 2.61% the week prior.

While the real estate market remains hot and home purchases are made, Colony Title Associates can help you close on the deal and guarantee you peace of mind by performing title searches on the property you acquire and insuring you against any title defects.

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All-Time Low: 30 Year Fixed Rate Mortgage Averages 3.40 Percent

Though we’re all culprits when it comes to shopping and purchasing items at national chains and big box shops, sometimes goods and services are better sourced locally. Farm fresh veggies from the field miles from your house are likely to taste better than those shipped in from the other side of the country. Buying furniture, clothes, or other wares from a local business boosts town economies, circulating money within the community and fostering employment. At Colony Title, we’ve seen that the trend to live local shouldn’t be cut short when it comes to real estate advice.

In the last couple of months, we’ve had an influx of clients come to us after seeking out the best rate for refinancing from out-of-state lenders sourced online. Though they made bold claims to offer the lowest possible rate for mortgages, their lack of knowledge about the location of the properties meant that their appraisals were often inaccurate. In one case, a property that was acquired for $600,000 just five years prior would not support an appraisal of $250,000. Another house, bought for $950,000 and then renovated and upgraded, wouldn’t support a new loan of $800,000. Why were there such discrepancies in the quotes from these lenders?

What the difference in appraisal comes down to is the lenders’ deficit of information about the local market and their general hesitancy to work through issues if there was a glaring disparity between their pricing assessment and the actual value of a property. When the borrowers converted to a local lender like the ones that Colony Title works with, they were able to get an accurate appraisal, approve their loans and close on the deal. The takeaway is this: claimed rates supposedly guaranteed by lenders aren’t the only means of choosing a lender. The associates at Colony Title are happy to work with you to help you find the lowest rate you can possibly obtain, making the borrowing process a simplified one.

Currently, rates in the area for conventional fixed mortgages are under 4.0%, while ARMs can be anywhere as low as 3% – sometimes even better. Jumbo loans are higher, but still available at attractive rates. Realtors in the Maryland area have agreed that we are at an all-time-low from a pricing standpoint – now is the time to invest!

At Colony Title, we can help you to find the best rates in real estate – we want to be your title company and real estate law firm.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

The real estate market is beginning to improve: rates are down and housing contracts are being submitted near or at the asking price of properties if the home is listed at a fair and appropriate price.

With low rates, the question on many homeowners’ lips is whether or not to refinance. A lot of our clients approach us with hesitancy about adjustable rate mortgages. We respond to their uncertainty with a question: “How long do you plan on staying in the house you have now?” If it’s ten years or less, we recommend an adjustable rate mortgage, since it can be fixed for 5, 7, or 10 years at a rate below the 30-year fixed rate. This allows for some degree of flexibility, giving borrowers the luxury to invest their savings as they see fit – including possibly paying the difference towards principal.

With the state of the market, investors are looking to buy, and with the tax savings, rental properties are becoming more and more valuable. Though closing on a property in foreclosure can be a risky ordeal, the professionals at Colony Title can help you to make the right moves.

As an independent business, we have something to offer you that most other title companies cannot. The title company recommended to you by your realtor or lender oftentimes has a financial connection to said advocate. This means that the title company’s allegiance could be questionable.

At Colony Title, we have maintained a status as an independent company that does not call to a captive realtor or lender, meaning that we provide unbiased, professional representation and advice for our clients.

Right now, there is a locally pending lawsuit that seeks to answer what happens when lenders, realtors, and title companies are linked – and whether that serves the consumer well or not. Here at Colony Title, we are interested to see what conclusions the court reaches, and are confident that our independent status helps us serve homebuyers in the best possible capacity.

We want to be your title company and law firm. We work very hard to deserve your trust. If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Buying a home is a complicated process, from perusing potential properties to finishing off all the necessary paperwork required for homeownership. Today, at Colony Title, we’d like to spend some time clarifying how the closing process works.

Closing simply refers to the point in time when the property title is transferred to the buyer and when a mortgage is given to either the buyer or borrower to the lender.

Of course, before putting a contract on a house, you should be supplied with information about the costs associated with closing. If you’re applying for a loan, the lender has three days from the submission of your application to furnish a Good Faith Estimate of your loan costs; this assures you will encounter no shocking details about the cost of your investment. At the same time, be on the lookout for a booklet called “Buying your Home,” which offers the basics on the settlement process to help you make sure everything runs smoothly and as expected.

When your sales contract has been accepted by the seller, the process of closing commences, and a settlement agent will help you to prepare your documents and deposit your money into an escrow account where the funds will be stored until the time of closing.

At that point in time, the settlement agent will ask for preliminary title work, which the professionals at Colony Title can gather for you, searching and examining public records for information pertinent to your home-to-be’s title. This will reveal any title flaws that need to be taken care of before the property switches ownership from the seller to you. We will help you to make sure all title issues are settled before you go into closing.

Before all can be said and done, the settlement agent must prepare the HUD-1 Settlement Statement, which details the costs that accompany closing for both the buyer and seller.

Once this document has been completed and the final paperwork signed, the property will officially be transferred to you – the new homeowner – and you can turn the key to your new place.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

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Closing Process

Last week, we talked about jumping on the hot real estate finds sweeping across the nation in our post, “Homeownership an Economical Approach to Living.” But when you’re getting ready to sign the deed, we want to remind you not to forget to consult the title experts at Colony Title to help you search the history of your potential property and insure the title of your house.

Here’s how we launch the process of searching a home’s title:

1.    Beginning with the most recent deed, we perform a search of the current title holder’s name and then move backwards in time up to the grantor, who appropriately, is responsible for granting the title.

2.    Following this process, the grantor’s name is searched backwards in the grantee’s book to determine the point in time at which the grantor acquired the title.

3.    This procedure is continued until our experts uncover the U.S. Patent.

Obtaining title insurance will secure you against loss arising from defects that might go undetected in the search process, protecting you against claims in the future. It is a one-time only purchase that is valid for as long as you own the property.

Here are some of the most commonly covered items in a Owner’s Title Insurance Policy:

1.    Clear title to the property

2.    Protection in the case of incorrect signatures on documents

3.    Coverage in the face of forgery and fraud

4.    Security against defective recordation

5.    Protection from Encumbrances or judgments

To learn more about title insurance policies and the type of plans offered by Title Colony, schedule an appointment with one of our experts today.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

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Title Insurance Policies

As anyone knows, home buying can be expensive. First and foremost, there is the cost of the house. But then there are all of the closing costs, as well, including: Title Search, Attorney Fees, Recording Fees, Lender’s Title Insurance, Home Inspection, Home Appraisal, Home Warranties, and much more! So it is no wonder that many home buyers are hesitant to shell out any more money for optional coverages, such as Owner’s Title Insurance.

But according to REALTORs everywhere, Owner’s Title Insurance is a must!

Owner’s Title Insurance is one of the least understood, yet incredibly necessary insurance policies around. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without Owner’s Title Insurance.

The most common causes of title encumbrance include:

• False impersonation of the true owner of the property
• Forged deed, releases or wills
• Undisclosed or missing heirs
• Instruments executed under an invalid or expired power of attorney
• Mistakes in recording legal documents
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud

With the Owner’s Title Insurance, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.

We at Colony Title want to be your Title Company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.