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Remember to provide the LSU – “Loan Status Update”

February 2 in Blog by anchortitlewave No Comments

Your Escrow Officer, at Title Security Agency, is here to assist with the prompt closing of every transaction. When opening escrow one of the important documents to provide to your Escrow Officer is the Loan Status Update aka “LSU”. The LSU allows for delivery to the Seller within five days after contract acceptance. Since escrow is oftentimes opened prior to those five days the transmittal to escrow of the LSU is overlooked. If at any time during the transaction the lender changes, notify your Escrow Officer right away. There are instances where the buyer may be denied a loan from the lender they have chosen. Submittal of the LSU within the prescribed time period, after the acceptance of the Contract, is crucial to the transaction. If the LSU is not submitted to escrow, and cancellation due to denial of the loan is submitted inside of 3 days of the original closing date, buyer may not automatically be entitled to a refund of their earnest monies.

Lines 59-61 of the Arizona Residential Resale Real Estate Purchase Contract outlines the return of the earnest monies.

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“Fiscal Cliff” averted – 1031 Exchange Helps Investors

January 2 in Blog by anchortitlewave No Comments

The Senate bill passed the House and contained a number of important issues relative to the housing market. Brigitte Echave, with Leverage Exchange Group, LLC, (1031 Exchange company) has written an article that highlights some of the provisions contained in the bill.

The Bush-era reduced tax brackets remain intact, except for income earners in the $400,000 + range. Even the AMT was reviewed and repaired. This new tax bracket will affect taxpayers in the higher incomes by implementing a 39.6% tax rate. Coupled with the 3.8% surcharge on investment income some investors could see capital gain rates of 23.8% on real estate investment sales.

Financially distressed owners of homes with underwater mortgages can rest easy now that the Mortgage Forgiveness Debt Relief act was extended through 2013. This means that those homeowners who face foreclosure or short sale, on their primary residence, will not face a large tax bill on the “phantom” income derived from these two events. Great news for the distressed home owner.

Tax credits for energy efficient home improvements remains available. This tax credit is modest ($200 – $500) but does allow owners a credit on their tax bill for installation of energy-efficient windows, insulation and other upgrades. A tax credit for energy-efficient new homes is in play and allows builders and contractors to claim $2,000 tax credit on new homes that meet federally specified energy-conservation standards. Even U.S. based manufacturers of energy efficient appliances are able to obtain credits for appliances produced with energy efficiency!

Now may be the time for all investors to consider the use of a 1031 Exchange. Brigitte indicates that with the Obamacare surcharge and Arizona’s own state capital gain tax rate, taxpayers could see a capital gain rate of 28.8% on investment properties. Find out more about 1031 Exchanges by calling Brigitte at 520-979-8256 or find more information online at www.leverageexchange.com

For a full copy of the Bill go to:
http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf

Read more in the1031 Newsletter – Fiscal Cliff

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BENEFICIARY DEED

December 6 in Blog by anchortitlewave No Comments

In 2001, Arizona became the second state to enact a statute (ARS §33-405) which permitted the use of a beneficiary deed to transfer real estate upon the death of the owner. In other areas of the country the deed is referred to as a transfer-on-death (TOD) deed. The beneficiary deed is similar in all respects with other deeds used to transfer real estate, except the one crucial difference being that the deed does not take effect until the death of the conveying party. The owner of real property is permitted to designate by deed, a beneficiary of the real property, and, on the death of the owner, the property passes to the beneficiary without the need for probate. In 2007 there were only 9 states that recognized the beneficiary/TOD deed. Currently there are 17 states which allow the use of beneficiary/TOD deeds.

The 17 states are: Arizona, Arkansas, Colorado, Hawaii, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, and Wisconsin. On January 1, 2013 Nebraska’s death deed act will go into effect.

                Each state has specific laws that govern the use of the deed in their state.

Aside from states that recognize transfer on death deeds by state statute, at least three states – Florida, Michigan and Texas – recognize an “enhanced life estate deed,” also called a “Lady Bird Deed,” under state common law. In these states, an enhanced life estate deed functions in a manner similar to a transfer on death deed.

                The beneficiary deed is a relatively easy and inexpensive way to transfer real property and aids in avoiding probate. Since this type of transfer is seen by many as an easy and inexpensive way to transfer real estate, many assume that the use of an attorney to prepare the document is unnecessary. However, as with any estate planning, a consultation with an attorney is probably best. Estate tax limits change constantly and consideration must be given to the tax implications which may arise upon the death. The taxes are just one consideration when contemplating the use of a beneficiary deed there are many others factors to consider. The attorney drafting the estate plan will review and discuss the clients entire estate. The attorney will also ensure that a durable power of attorney exists, with specific provision to permit the revocation of a beneficiary deed. A revocation may become necessary if the grantor becomes incapacitated. Such incapacitation without a durable power of attorney could further complicate matters especially for caregivers of the incapacitated party.

              Upon the death of the grantor to the beneficiary deed, further documentation is necessary to effect the end intended result of the deed. Such as, recordation of the death certification and an affidavit. A beneficiary deed which is executed but never recorded has no effect on the property as the statute in Arizona (§33-405) requires that the deed be recorded. This requirement prevents any transfer to occur on someone’s deathbed.

If you would like to read more about beneficiary deeds we have found the article written by Thompson Law Group to be most helpful. The article can be found here.

The preparation of documents by Title Security Agency and its Escrow staff can only take place when a transaction is opened for the purchase, sale, loan or refinance of a property. As such, preparation of beneficiary deeds are not part of the services offered by Title Security Agency.

If you have questions or comments regarding this blog post contact Brigitte Echave at Brigitte.Echave@TitleSecurity.com or 520-722-2578.

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Escrow Earnest Money Delivery

November 7 in Blog by anchortitlewave No Comments

               Recently our Escrow Officers and staff have noticed that earnest monies are being mailed to escrow instead of being hand delivered. Escrow is not officially opened until the escrow earnest money funds are deposited into escrow. If the Tucson Processing and Distribution Center of the USPS closes, which has been discussed, then mail within Tucson will take longer and the escrow earnest monies will be delayed further when mailed. Once an accepted contract is in hand the escrow earnest monies should accompany the contract upon the opening of escrow.

               The best method for delivering the escrow earnest money is to deliver the funds with the contract or contact one of our Business Development team members and have your contract, along with the escrow earnest monies check, picked up. The earnest monies should be in the form of a cashiers check. A wire is also an acceptable method of delivery. By contacting one of our highly skilled escrow officers you can obtain the wire instructions for your transaction.

               As you can see when a buyer mails an escrow earnest money check, this will cause a delay in the opening of the escrow which may breach the terms of the contract. If you are uncertain what forms of escrow earnest monies are acceptable, contact your escrow officer. A complete list of our branches can be found here!

If you have questions or comments concerning this blog post contact Brigitte Echave – 520-722-2578 or Brigitte@LeverageExchange.com.

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Inside Tucson Business features Title Security Agency

November 1 in Blog by anchortitlewave Comments Off on Inside Tucson Business features Title Security Agency

Did you catch the story that Inside Tucson Business ran on October 12, 2012? Title Security Agency is celebrating its 40th year anniversary which is no small accomplishment.  Considering the changes which have occurred from 1970 to 2012, Title Security Agency has been known to be innovative, entrepreneurial and always on the cutting edge of whatever is new in the real estate industry. The changes in our industry and the world are vast and well detailed in the story run by Inside Tucson Business. Tom Sullivan Jr. attributes the many successes of the company to the employees who make Title Security the great company it is. Go to Inside Tucson Business to read the full story. Read More. Tell us what you think, we would love to hear from you, our customer!

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SHOES — Donate yours today!

September 28 in Blog by anchortitlewave No Comments

 
 
 
 
 
 
 
 

 

Are you looking for a way to make a difference? Title Security Agency is always looking for a way to make a difference in the lives of others in our community. If you would like to join us, please consider donating your new or gently used shoes for a good cause. Any shoes collected will go to Casas de los Ninos, the Primavera Foundation or to Soles 4 Souls.

If you would like to donate contact Ellen Gille at ellen.gille@titlesecurity.com. Help make a difference in the life of someone else!

TOGETHER WE CAN MAKE A DIFFERENCE IN THE COMMUNITY

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Community Service

September 21 in Blog by anchortitlewave No Comments

At Title Security Agency (TSA) we have a community service committee designed to assist the employees of TSA perform community service throughout Tucson. The committee meets to determine where a group of employees might volunteer together as a team and meet the needs of the Tucson community.

Below are the upcoming community service projects and drives we have planned:

Tomorrow, Saturday, September 22nd and Saturday October 20th, 10:45 a.m. to approximately noon – Make sandwiches for the Casa Maria Catholic Workers House to distribute to the hungry, poor and homeless – at St. Pius X Catholic Church, 1800 N. Camino Pio Decimo, Tanque Verde Room – If interested, just show up and make sandwiches and assemble sack lunches, over 600 lunches are made in two hours. Employees, friends, family members and children welcome. (This event occurs every four weeks).

Saturday, October 13th, 9:00 a.m. to noon – Community Food Bank of Southern Arizona, 3003 S. Country Club, #221 – Pack food boxes on an assembly line. This is a 3 hour commitment. This is our third time doing this event, it is work, but, we have a lot of fun. Employees, friends and family members are welcome to join in, must be 16 years old and must wear closed-toed shoes, no sandals. If you wish to participate, please RSVP to Ellen Gille (ellen.gille@titlesecurity.com) by October 5h.

During the month of September – Did you know that over 1.5 billion pairs of shoes lay idle in American closets? We are having a new and gently used men’s, women’s and children’s shoe drive to benefit Primavera, Casas de los Ninos and Soles for Souls. We have placed a collection box at the Main Office.

The picture contained herein is of a recent Ben’s Bell event!

Please consider joining in – together we can make a difference!
Thank you,
The TSA Community Service Committee

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September 2012 – 1031 Exchange Newsletter

September 6 in Blog by anchortitlewave No Comments

Has an investor ever asked you what happens if my exchange fails? When do I, the investor, report the income? Does the escrow agent report the income? The September Newsletter by Leverage Exchange Group, LLC (one of our subsidiaries) gives some great information on the subject. Check out the September 2012 Newsletter:

Straddling a Tax Year – Failed Exchange Tax Reporting – September 2012 Newsletter

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Congrats and thank you!

August 16 in Facebook by anchortitlewave No Comments

( From Facebook )
Congrats and thank you!


Liz Nguyen Henderson's Photos
Congrats to our family friends, Natalie & Ruben, who are signing for their new home with Pam Cox's substitute, Angie. You're here in Spirit Pam! Thank you Zach Mooney and Derrick of the Presidential Team at Nova Home Loans for bringing the money and to Heather Chumbler of 2-10 Home Warranty.

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Escrow Tip – August 2012

August 6 in Blog by Diane Warren No Comments

Often the Escrow Agent and Seller’s Real Estate Agent are approached during a transaction with a request from the Seller to use a Power of Attorney on the sale transaction. One immediate question that comes to mind: Is the transaction a Short Sale? If so, you may want to avoid the use of a Power of Attorney for this transaction. When the use of the Power of Attorney is unavoidable the tips here may be useful. Be aware that Escrow, Title & the Seller’s Lender/Servicer will want to review the Power of Attorney. The Power of Attorney must be approved for use by the Escrow, Title & the Seller’s Lender/Servicer. The Power of Attorney should be submitted to all parties well in advance of the closing to avoid delays at the closing.

Be sure to cover this issue with the servicer as early in the transaction as possible. Ask your Escrow Officer at Title Security Agency about completing a Specific Power of Attorney for this transaction. Once the Seller has signed, before a notary public, the Power of Attorney the original should be delivered to escrow, preferably well in advance of the closing on the short sale transaction.

Your Escrow Officer at Title Security Agency stands ready to assist you with your Short Sale closing and welcomes any questions you may have. A list of the Escrow Officers for Title Security Agency can be found on our website here.

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Are you a First Time Home Buyer?

June 28 in Blog by Diane Warren No Comments

If you are a first time home buyer, these tips are good for the first time home buyer. Buying a home for the first time is an exciting time. With this excitement also comes details. The first time home buyer can find useful tips in this article and can avoid some common pitfalls. Take advantage of this information then you will want to look at these tips.First Time Home Buyer Tips

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