P: (901) 482-0354 | E: Jo@JoGarner.com

P: (901) 482-0354 | E: Jo@JoGarner.com

HOW DEATH CAN AFFECT THE TITLE AND TIMING ON YOUR REAL ESTATE TRANSACTION

by | Mar 9, 2020 | Appraisal, Closing, Financing, Money, Mortgage Loans & Rates, Preparation, Senior Care, Tips, Tricks & How To's

HOW DEATH CAN AFFECT THE TITLE AND TIMING ON YOUR REAL ESTATE TRANSACTION

Today’s topic covers crucial  aspects that oftentimes get overlooked.  Real Estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer Law Firm will help you keep death of an owner from killing the real estate transaction.  I will be sharing stories from clients who took wise steps to help their families survive well financially in the case of their passing way. 

What do YOU want to accomplish with YOUR mortgage?  Call me at (901) 482-0354 and let’s explore financing options that can be very profitable for you.  Subscribe at www.JoGarner.com to get Real Estate Mortgage Shoppe podcasts with show notes in your inbox every week.

To Your Success,

Jo Garner, Mortgage Loan Officer NMLS# 757308 (901) 482-0354 Jo@JoGarner.com

Sierra Pacific Mortgage

46 Timber Creek Dr

Cordova, TN 38018

IT’S SHOWTIME….

Good morning, Memphis!  Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer.  You can connect with me at www.JoGarner.com.   HOW DEATH CAN AFFECT THE TITLE AND TIMING ON YOUR REAL ESTATE TRANSACTION.  Subscribe to get our weekly blogposts with podcasts at www.JoGarner.com. Call us while we are live at (901) 535-9732 Today is March 7, 2020.  

INTRODUCING ATTORNEYS ROB DRAUGHON AND SHELLEY ROTHMAN

In the studio again we have Rob Draughon and Shelley Rothman of Griffin, Clift, Everton, and Maschmeyer Law Firm.   My clients and our team over at the mortgage office are so impressed with your service and help to clear up title issues.  Rob and Shelley, take a few moments to tell our listeners a little bit about yourselves and what you do for your clients.  (Rob and Shelley introduce themselves and talk about what they do for their clients at the law firm)

MORTGAGE RATES AT A 50-YEAR LOW

(Jo) As of today March 7th, 2020, the galactic size opportunities we are seeing from the mortgage desk are in these 4 areas. Which of these categories fits you best?

  1. Buying a home with a 50-year low fixed rate interest rate.
  2. Refinancing your current mortgage to a lower rate and lower payment
  3. Refinancing your current mortgage to a lower rate AND eliminating 5 to 10 years off your mortgage term.
  4. Refinancing your current mortgage to a lower rate and rolling into the refinance other higher interest rate debts so you can pay off the loan early and at a much lower interest rate cost.

This reminds me of one of clients that I like to call a “rock star’ clients that we can call Gary Guyton (not his real name.)

GARY GUYTON’S STORY-TAKE TIME TO SMELL THE ROSES AND SAVE MONEY TOO

Gary Guyton (not his real name) loved his profession and spent a LOT more than 40 hours working at what he loved to do.  In the past, Gary regretted being so busy that he missed very important opportunities to be present with loved ones when they needed him.   He also regretted missing financial opportunities because he was nose-to-the-grindstone working without looking up.

But, with the help of some friends, Gary blocked out time each week to spend with his loved ones and time to really put thought into how he was spending his money.   He called me not long ago and we explored some refinancing scenarios. 

By refinancing his loan of a little less than $170,000, to a 15 year term with a lower interest rate, Gary was able to eliminate about four and a half years off his remaining mortgage term and lower the overall interest costs over the loan amount.    The refinance to a 15 year term from a 30 year term would save him over $40,000 over the next 15 years.  His payment would go up about $100/month but that was manageable for Gary. 

In the past, Gary would have been too busy to take time to look into the benefits of a refinance.   But, he DID call and now he was happy and feeling VERY good about his decision to make over $40,000 in financing savings over such a short time. 

MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY.   Connect with me at www.JoGarner.com. Email me at Jo@JoGarner.com  or just call me at (901) 482-0354. 

Shelley Rothman and Rob Draughon, you see a lot of people making real estate related decisions in your real estate closing office at Griffin, Clift, Everton and Maschmeyer Law Firm. What advice can you share with us today to keep our timing and title on track for closing?

( Rob and Shelley launch into the first part of their topic)

You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer.  What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today.   When we come back attorneys Rob Draughon and Shelley Rothman will be sharing some valuable information when it comes to avoiding closing delays and title issues with the passing away of a homeowner. See you back in just a moment. 

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THE LOOK BACK MEMPHIS TRIVIA CONTEST

2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you  by notable Memphis historian, Jimmy Ogle. Twelve of his Memphis History lectures entitled Making Memphis – Storytelling by Jimmy Ogle may be viewed by Googling “JIMMY OGLE PINK PALACE”.  View at JimmyOgle.com. .  The Look Back Memphis Trivia Contest is  sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project or you can do the big project in phases . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer.  If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732. Big River Crossing

Question:  It’s time to “brand” me, and my new name is for the new project that crosses the Mississippi River.  What is my new name?

Hint:  I was first opened in 1917 to provide automobile access across the Mississippi River.

Hint:  A part of me had opened in 1916 for the increased railroad demand in Memphis.

Hint:  My automobile sections were closed in 1949 when the Memphis & Arkansas Bridge was opened.

Final Hint:  In December, 2014, my name with the original bridge name received a new name to brand the most unusual pedestrian and bicycle crossing over the Lower Mississippi River.

Answer:  Big River Crossing.  Opened in 1916, the railroad portion with two tracks became the Harahan Bridge.  The Harahan Bridge was named for James Harahan, an Illinois Central executive that championed a new bridge in Memphis to augment the Frisco Bridge (railroad only, one track) that had opened in 1892.  In 1904, there were eight automobiles in Memphis, but by 1910 there were 1,000, and by 1913 – 6,000 automobiles!  The need for an automobile crossing was met in 1917 when the cantilevered portions on the north and south sides of the Harahan Bridge opened to allow vehicles to cross of the Lower Mississippi River for the first time, on wooden planks.  By 1927, the “Broadway of America” (Highway 70) opened to promote a paved, signed highway across America, connecting San Diego with New York City (through Memphis). In 1949, a third bridge was opened, the Memphis & Arkansas Bridge opened, and the cantilevered supports were closed.

Fast forward to 2013, and Memphis entrepreneur, Charles McVean, began championing the adaptive re-use of the closed cantilevered areas.  Over $30 million in public and private support was gathered, involving two states (Tennessee & Arkansas), two counties (Shelby & Crittenden) and two cities (Memphis & West Memphis), the cooperation of the Union Pacific Railroad and the Mid-South Bicycle Community.  The Main-to-Main project connects Broadway Avenue in West Memphis with Main Street in Memphis, and the Big River Crossing will connect the eastern portion of Shelby County via green lines and greenways all the way to the levees of Eastern Arkansas.  At a press conference at the Church Of The River in December, 2014, the pedestrian and bicycle portion on the north side of the Harahan Bridge, scheduled to open in the autumn of 2016, was official named BIG RIVER CROSSING!

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TOPICS COVERED BY ROB DRAUGHON AND SHELLY ROTHMAN OF GRIFFIN, CLIFT, EVERTON, & MASCHMEYER LAW FIRM

Something we get phone calls about frequently is closing on properties where the owner is deceased.

What can you expect if you have inherited real estate and want to sell it?

You should know or find out who the legal owners of the property are before signing a listing agreement to sell the property.

These are general guidelines:

  • If a couple owns property as husband and wife and one of them passes away, the surviving spouse owns the property and can convey it.
  • If people own property as joint tenants with the right of survivorship in the longest liver and NOT as tenants in common the surviving tenant or tenants own it and can convey it.

If the sole owner passes away,

  • As a general rule, real estate cannot be conveyed within 60 days of the date of death of the owner.  The reason for this rule is to allow people that may be holding a deed from the deceased person to come forward and record it.
  • In Tennessee, title to the property immediately vests in the beneficiaries or heirs at the time of death.  It needs to be determined whether or not the deceased person had a Will. 

If not, the property will pass by the laws of intestacy in Tennessee.  Under the laws of intestacy, depending upon the facts, ownership of the property will be shared among any spouse and children of the deceased.  If the deceased was not married and had no children it would go to his or her parents.  If the parents are already deceased it would go to brothers and sisters.   In this case, there are  circumstances where the owners of property can be proven by what’s known as “Affidavits of Heirship” .  Depending upon the circumstances, it may still be deemed necessary to open what’s known as an Intestate Estate in the Probate Court. 

If there is a Will, the real estate will go to the beneficiaries under the terms of that Will.

Again, depending upon all of the circumstances, the Will may or may not need to be probated or it may just need to be probated for purposes of proving ownership.

Be prepared to provide a certified copy of the deceased owners Death Certificate under all of the above circumstances. 

TennCare is part of Medicaid.  The State can recover repayment from the estate for Medicaid received in connection with long term services and support such as nursing home care or home and community based services for people over 55.   If the last surviving owner passes away, a TennCare Waiver will be required if they were over the age of 55.  TennCare has a lien on the real estate of people that were on TennCare prior to passing away.  A TennCare Waiver states that they were not on TennCare or, if they were, it will give the amount owed to the State which will need to be paid at closing unless other arrangements are made.  

Once the property is sold, depending upon when the owner passed away and whether there has been a Probated estate, you can expect the net proceeds from the sale to be held in escrow for anywhere from 4 months from the date of Notice to Creditors of an opened Probate Estate to a year from the date of death. Your real estate attorney will review the circumstances, work with a probate attorney as needed, and let you know what to expect.

If you are under contract with the Seller and the Seller dies before closing do not despair.

Under these circumstances there will need to be a Probate estate opened at which point a personal representative will be appointed by the Court.  The personal representative can then convey the property to the purchaser.  The beneficiaries may need to sign the deed as well.  ­­­­­­­­­­­­­­

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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER

  1.  What are the biggest profit opportunities you see in the current rate environment?

As of today March 7th, 2020, the galactic size opportunities we are seeing from the mortgage desk are in these 4 areas. Which of these categories fits you best?

  1. Buying a home with a 50-year low fixed rate interest rate.
  2. Refinancing your current mortgage to a lower rate and lower payment
  3. Refinancing your current mortgage to a lower rate AND eliminating 5 to 10 years off your mortgage term.
  4. Refinancing your current mortgage to a lower rate and rolling into the refinance other higher interest rate debts so you can pay off the loan early and at a much lower interest rate cost.
  5. What are some of the ways you have seen your mortgage clients choose mortgage terms that best fit their family needs?
  6. These are my personal opinions I am sharing with you.  I am not a certified financial advisor, but I have been in the mortgage business for over 25 years.  You learn something new every day in this business.  So, my number one observation is to own your own home.  Own more than one.   A home is a valuable asset that you can enjoy today, that can sustain you tomorrow and that you can leave to those you love once you have passed away.
  7. When you buy a home, be willing to start small and gradually build up to the home you want later.  You don’t have to move into your dream home with your first home.  The clients that I have seen become very financially well off and comfortable are those people who were disciplined with their investments.

They started small with a payment they could afford, and gradually moved up toward their dream home. 

A lot of the financial gurus you can hear on podcasts, books and media interviews will suggest you keep your total house payment under 25% to 28% of your gross income.  Keeping your total income-to-debt ratio including your other payments under 38% to 45% of your gross income.  

Keeping a healthy emergency fund at all times fits in here too. The financial experts in the media differ in their opinions as to how much emergency fund you need, so check with a qualified financial planner.  I heard one financial expert suggest keeping 3 months of living expenses in an undisturbed emergency fund if you have a stable, salaried job.   If you are self-employed or largely a commission only employee, having a whole 12 months living expenses in an emergency fund is suggested. 

  1.           As I describe to you the ways so many of my former, financially successful      clients  have handled their financial affairs, I am reminded of a dear client who has passed away not too long ago.  Let me share with you the Harlington family’s story.

Harry and Helen Harlington- Structure your mortgage financing with your other family member interest in mind

Harry and Helen Harlington committed many years ago to put others first, including their own family members.  Time after time financial challenges, physical illnesses and other of life’s storms tried to blow this family off course.   Each time the Harlington’s regrouped and continued to put other’s interest first.  This forced them to think of creative solutions and take action. 

The first time I met Mr. and Ms. Harlington was about 20 years ago when they were buying a home.   They wanted a 30 year fixed rate mortgage so that they could afford to help their children who were finishing up college.  The Harlington’s set up a system to make extra payments to try and pay off the mortgage early.

Then mortgage rates dropped. Mr. Harlington and I explored some refinance scenarios with a much lower mortgage rate than he was currently paying and on a 15 year term, which would automatically eliminate over 5 years off the mortgage.  Mr. Harlington could do long math in his head.   Before I could print out for him the benefits of cutting the interest by over a point and dropping over 60 payments off the loan payoff, he already had calculated the tens of thousands of dollars his family would get to keep in their pockets if he cut the rate AND the term on his mortgage.  We did that refinance with him and his wife walking away with bragging rights

A few years later Mr. Harlington called  me with some very bad news he had received from his doctor.   By this time the shorter 15 year mortgage term had allowed him to significantly pay down the balance on his mortgage.  He had saved a LOT of money doing this.

But, true to his  commitment to put others first, he gave up his desire to pay off the mortgage completely, and instead, we looked at taking the smaller balance left and refinance to a still low rate but longer 30 year term.    The payments would BE drastically lower than he was paying so that, if he should pass away before his wife, she would be able to easily make the payments on the remaining mortgage and leave plenty in the budget to pay for her personal care and keeping up the house.

Over a 20 year period, the Harlington’s saved tens of thousands of dollars on what they paid on their mortgage by taking advantage of rates when they could refinance to lower interest expense.  They also saved thousands by eliminating years off their original mortgage.  

What do YOU  want to accomplish with YOUR mortgage?  Let’s explore some options you have today while rates are at around a 50-year low.  Call me at (901) 482-0354  or email me at Jo@JoGarner.com  .  

REAL ESTATE TIP OF THE WEEK (Rob and Shelley to share a real estate related money-saving or time-saving tip):

ANNOUNCEMENTS:  

Talk Shoppe offers free networking & education to anyone interested in real estate or in business and health and wellness. Talk Shoppe meets every Wednesday 9A-10A CT at Concorde Career College 5100 Poplar Ave 1st floor Memphis, TN (The Clark Tower)  This Wednesday March 11th, 2020, Sandy Wright of WrightEdgeSolutions will be presenting “ “The Destructive Side of Hoarding: Dealing With Issues of Chronic Disorganization and Hoarding.”  For more about Talk Shoppe www.TalkShoppe.com

Talk Shoppe events are free thanks to sponsors like Maria Popa, certified financial advisor and investment advisor with Strategic Financial Partners here in Memphis.   Set up an appointment with Maria Popa to put together your family financial plan at (901) 260-6431   You can also find Maria at Talk Shoppe.

Thank you also to Miranda Griffin of Healthy Mid-South for educating us on how to set up eating habits and routines to stay healthy.   You can find Miranda at Talk Shoppe events. You can also find her at www.healthymidsouth.com

 A special thanks to Don Lawler of www.storytellersMemphis.com  for helping our business people at Talk Shoppe tell their brand story in video.   Don Lawler with StorytellersMemphis can help YOU and YOUR business brand too. 

3. REMEMBER TO SPRING YOUR CLOCKS FORWARD 1 HOUR TONIGHT FOR DAYLIGHT SAVINGS TIME

4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.   

5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN.  IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.

SPECIAL NOTE:  REAL ESTATE MORTGAGE SHOPPE  RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS.

QUOTE CORNER:  

Dr Seuss- “How did it get so late so soon? It’s night before it’s afternoon. December is here before it’s June. My goodness how the time has flewn. How did it get so late so soon?”

Eric Thomas- “Change your 24 hours and you will change your life.”

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REJOINDERS: 

  1. Jana Cardona, Executive Director of Mid-South Business Network International www.bnimidsouth.com  
  2. Pat Goldstein, realtor with Crye-Leike Inc., West TN and North Mississippi (901) 606-2000
  3. Eric Eurich, Kaizen Award-Winning business coach with www.eeurich@focalpointcoaching.com

Transitional Music: “Time” by Pink Floyd; “Time Is On My Side” by the Rolling Stones; “100 years” by Five For Fighting. “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest

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ABOUT REAL ESTATE ATTORNEYS- SHELLY ROTHMAN AND ROB DRAUGHON -GRIFFIN, CLIFT, EVERTON & MASCHMEYER

ABOUT JO GARNER-MORTGAGE LOAN OFFICER:

WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?

www.JoGarner.com    (901) 482 0354  jo@jogarner.com  twitter @jogarner  NMLS# 757308 (currently working with Sierra Pacific Mortgage, Inc)

“Whatever YOUR  personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on  hitting your goals .”

As a mortgage loan officer, my job is to help you get to the  benefits you want from your financing terms.  What is most important to you? I can help you find the financing terms that will help you get to what you want.   What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?

 Different clients have different priorities in life—some are buying their first home with very little down payment funds.  Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”

 Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country.  She offers conventional, FHA, VA or other loan programs for refinancing and purchases. 

Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home  purchase financing.  

Jo Garner  has been in the real estate/financing business for over 25 years.  She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine  and was personally mentored in San Diego, California  by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge. 

On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate.  In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years.  Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.  

In addition to her work in the mortgage field, Jo Garner  is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com  Jo Garner also hosts the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com