PFwise.com
Search
  • Home
  • Blog
  • Tools
  • Know-how
    • Insurance 101
    • Annuity 101
    • College Planning
    • Real Estate
    • Retirement Planning
    • Smart Investment
    • Stock Ideas
    • Tax Planning
  • About Us
  • 中文
  • Resources
    • Personal Finance Reading List
    • Financial Aid Resources
    • Personal Finance Calendar
    • Retirement Planning Calendar
    • ETF list
    • Financial Glossary
  • Newsletters Archive

Top 10 Landlord Mistakes From Zillow

10/27/2019

0 Comments

 
​Here are 10 of the most common mistakes landlords make and how to avoid them - from Zillow.

1. (Not) Understanding your local market
The three most important words in real estate investing continue to be location, location, location. This is twofold: First, it means making sure your rental is in a desirable area so you can attract more potential tenants. Just because the price is right doesn’t mean that the location is. Get to know the neighborhood, including access to transportation, grocery stores, area features and businesses. Second, understanding your location means learning about the dynamics of the local market, researching area taxes and determining what you can charge for rent — all of which are key to estimating the return on investment for your property so you can predict your monthly rental income.

2. (Not) Understanding fair housing laws
Before you start looking for tenants, you need to understand fair housing and discrimination laws; otherwise, you risk getting into legal trouble. Fair housing laws are federal statutes that ensure equal access to housing for everyone. It is illegal to discriminate against anyone on the basis of race, color, religion, national origin, sex, familial status or disability. Many local and state governments have additional protections that you’ll want to become familiar with. A general rule of thumb is to focus on the property and amenities in your advertising and conversations — not on who you think the ideal tenants would be or features geared toward a specific group. The bottom line is to treat and communicate with every applicant and renter in the same way.

3. (Not) Putting your best marketing foot forward
While advertising a rental property may not be as sexy as advertising a hot new car, there are many similarities. Just like the best product ads, you’ll want to feature high-quality photos of your rental — and the more, the better. It’s worth the expense to have professional photos taken during the spring and summer months so your property looks its best. You’ll also want a clearly written, accurate and error-free description of the property and amenities. Consider posting your property on Zillow Rental Manager to reach as wide of an audience as possible.

4. (Not) Conducting a thorough tenant screening
While speed is important in filling your vacancy, you still want to choose a highly qualified renter. Create a documented process and criteria for finding, screening and securing your tenants. Make each potential renter fill out an application and verify everything from employment to past addresses (and get landlord references while you’re at it). You’ll want to perform a tenant background check and run a tenant credit report. Confirm that renters have paid the rent on time and have not caused problems for their previous landlords or employers.

5. (Not) Completing accurate leasing paperwork
A lease serves as a binding, legal agreement between you and the tenant. As such, you’ll want to make sure it thoroughly addresses the rules, policies, and conflict resolution procedures for living on your property, and clearly defines tenant and landlord responsibilities. Remember to put everything down in writing: A handshake or verbal agreement won’t hold up in court. You can find many generic leases online, but you’ll want to review the lease requirements specific to your state or municipality and incorporate them into your rental agreement. Have it examined by a legal professional to ensure that the terms protect your interests and comply with local and state regulations.

Tip: Zillow Rental Manager offers state-specific, customizable online lease agreements for free. This feature is currently available in select locations.

6. (Not) Knowing your landlord responsibilities
Securing a tenant for your property is a huge milestone. But, your work is not done. As a landlord, it’s your job to meet your terms of the lease agreement: Check in with your tenants, keep tabs on the condition of the property, complete regular preventative maintenance and seasonal maintenance, and respond quickly to requests. Make sure your property is a healthy and safe place to live, and that you keep up on your taxes and financial reporting. Neglecting your tenants and your property can result in higher turnover, more vacancies, less rental income or even lawsuits.

7. (Not) Anticipating maintenance costs
Be prepared for the possibility that your property won’t always be occupied. If you aren’t able to fill a vacancy right away, do you have enough cash set aside to pay for the mortgage, utilities and other maintenance costs? Maintaining a rental property comes with unforeseen expenses, such as damages and unexpected repairs, and the bills still need to be paid. Complete a cash flow analysis and establish a budget so you’ll be able to cover these potential costs, then track your expenses to ensure you’re staying in the black.

8. (Not) Knowing when to hire a professional
If you live in the area, are handy around the house and have the time to quickly respond to requests, you can maximize your rental income by handling some of the general maintenance and management of your property. However, if you have several properties or are juggling an investment on top of a full-time job, you may be better off enlisting the services of a professional property manager. Also, depending on your experience and the condition of the rental after your tenants leave, you might want to hire a contractor to make significant improvements or repairs.

9. (Not) Managing your time efficiently
For many landlords, managing even one investment property can be a full-time job. Between securing a tenant and keeping up the books, you should understand that any investment property is a big time commitment. No matter how much you love what you do, make sure to take time for yourself and create a list of people you can rely on for backup. Having a network of people who can help in a pinch is important for the maintenance and safety of your property.

10. (Not) Treating your rental like a business
However you got into landlording, your rental property is a business and an income source — and you need to treat it that way. Consider setting up a Limited Liability Company (LLC) for ownership. This can help protect you personally from legal actions or claims. In addition, consider using accounting software or a spreadsheet to keep close track of your income, expenses and ultimately your return on investment. Document all of your procedures and communications with applicants and tenants, and make sure to stick to your procedures. When you’re renting a property, you will hear a lot of different stories, and some of them may be sad. There are many opportunities to help your community, but you want to make sure any action you take makes good business sense.

Successful landlords leverage skills from many different areas: customer service, marketing, accounting and home repair, among others. Reduce the risks that come with being a landlord by educating yourself and networking with other experienced landlords and related professionals. Join local or national landlord associations to keep up with changing rules and regulations, and share your experiences, so you can avoid the most common landlord mistakes.
0 Comments

A New Way to Sell Houses ... Fast

8/28/2019

0 Comments

 
Technology firms such as OpenDoor, OfferPad, and Zillow Offers, are looking to make the real estate market more efficient – or more accurately, to leverage technology to take advantage of market inefficiencies.

From the seller’s perspective
The process of selling a home is far easier - first, request a bid from one of the platforms simply by filling out a form and uploading some pictures, next, get an offer, which the seller can take without needing to work around the (human) buyer’s needs or whether the buyer will be able to get a mortgage and close on the purchase (and since the platforms all assume they’ll need to fix up the homes anyway, there’s no pressure for sellers to engage in extra maintenance fixes or complex staging to make the house more appealing for sale).

From the buyer's perspective
The new platforms also make the process of buying simpler, as buyers no longer need to coordinate with sellers, and can simply use the companies’ own apps to open and access a potential new home for a walk through.
0 Comments

How To Easily Sell Your Home?

6/3/2019

0 Comments

 
Selling a home is a hassle, you have to spend money and time to clean, fix, and stage it, and the final price is uncertain.  Now there is an easy way to sell you home - to corporate buyers.

Here is a list of the major players:
  • Opendoor: "get an offer for your home with the press of a button"
  • Offerpad: "we want to buy your home"
  • Redfin Now: "get an all cash offer for your home"
  • Zillow Offers: "skip the hassle, sell to Zillow"
  • Coldwell Banker, ERA, and Keller Williams are also testing similar programs

Convenience comes with a price, the corporate buyers typically charge a service fee of 6% to 13% of the price, but sellers don't have to pay carrying costs and the expense of fixing up the home for sale.  You can close for cash within a week.

0 Comments

Home Exchange Websites

2/15/2019

0 Comments

 
  • HomeExchange.com
  • SmarterTravel.com/home-exchange-guide
  • HomeExchange50Plus.com
  • HomeLink-USA.org
0 Comments

24 Questions to Ask When Choosing a Real Estate Agent or Broker

1/20/2019

20 Comments

 
​Take this checklist to meetings with your agent or your realtor and don’t settle until all of their answers are to your satisfaction.

1. Can I See Your Real Estate License?  No brainer, right? Always ensure you’re working with a trained, accredited professional. Every listing agent should be prepared to deliver proof of their license to sell in your area. If they can’t deliver, move on because something shady is going on.


2. Can You Pass Along a List of Referrals?  Like a license, every listing agent—and home buyers’ agent for that matter—should arrive at a first meeting with referrals. If they do not, ask for them. Be wary if an agent can’t offer a handful of client names to call.


3. What Is Your Listings’ Average Days on Market?  Always ask to see how long their listings sit on the market. Compare it to other agents interviewed, and if theirs is oddly high, ask for an explanation. If they can’t attest to why, find another agent.


4. What Is Your List-to-Price Ratio?  An agent can show the prices at which they list a home, but more important is to see how that compares to the price the homes actually sell—up to date, of course. A good list-to-price ratio will depend on the market and location, but be wary of percentages too far below 90%.


Also, if an agents’ ratio is skyrocketing over 100%, be careful of their strategy of underpricing homes to pad the ratio. Request specific details about their motivation for the listing price.


5. Have You Sold Homes in This Neighborhood?  Communities differ greatly in terms of what types of homes sell, what buyers want, and more. Plus, to sell a home, agents are also selling the neighborhood and its perks. If an agent has experience in your specific neighborhood, it’s a major advantage.


6. Have You Sold Homes in This Price Range?  Price range can dramatically alter decisions for marketing and selling a house.Agents should understand the market, period.


7. How Long Have You Been a Real Estate Agent?  Be cautious of new agents, but it’s not a deal-breaker if they have stellar referrals.


8. Are You a Part-Time or Full-Time Agent?  Be far more cautious if an agent is part-time. Selling your home needs to be a full-time job, and they should be focused.


9. How Many Sellers Are You Currently Representing?  Focus is also a concern for agents who are juggling several listings. You don’t want to get lost in the shuffle.


10. What’s the Ratio Between Buyers and Sellers You Represent?  Listing agents need to be experienced in, of course, listing. If history shows far more experience on the buying side than the selling, it’s not a deal-breaker, but be comfortable with an agents’ answers for all of the other questions. It could benefit to have a network of eager buyers at the disposal.


11. Will I Be Working With You Directly or a Team?  There’s nothing more frustrating than getting incredibly comfortable with an agent and then seeing someone new at every meeting. A small team is OK—it means more resources and assistance—but get introduced to everyone. Don’t allow your home to be another nameless, faceless listing.


12. How Do You Plan to Market the Home?  Every realtor should enter this partnership with a plan—period.

13. Do You Have XYZ in Your Network?  Experienced listing agents should, at a minimum, be able to recommend the following: a lawyer specializing in real estate, mortgage advisor, handyman, home stager, house cleaners, and moving companies. Part of the benefit of working with a real estate agent is access to their vast network, Fleishman, explains.


14. How Do Your Realtor Fees Work?  No surprises, understand ahead of time how to pay the realtor. Typically listing agents work under split commission. When the seller pays a listing agent, for example, 6% commission, that agent will split it with the agent who brought the buyer to the home. However, fees should always be negotiable.


15. Can You Explain the Home Selling Process from Start to Finish?  For home-selling novices, the process can seem long and complicated. Feel comfortable understanding the key points along the way—preparing the home, showings, how to manage offers, home inspections, what happens post-accepting an offer, timelines, etc. A realtor should make you comfortable along the way, though always expect the unexpected.


16. What’s the Best Way to Contact You?  A realtor should never be out of touch, within reason.


17. Can I See a Written Comparative Market Analysis?  A CMA is step one of determining a price for the house. It examines the neighborhood, showing prices at which similar properties sold. 


18. What Price Will Sell This House?  The worst thing you could do is overprice a home.

No nonsense, a realtor should tell it like it is. If you’ve followed the first 14 checklist questions and chosen someone you trust, now’s the time to listen.

19. What Do You Believe Will Sell This Home?  This is the second most important question to ask a realtor. Ditto to question 18. When it’s a trusted relator, this should be easy advice to follow, even if it may be hard to hear—i.e. a remodel, removing all family photos, a new roof, painting over a beloved mural, etc.

20. How Can We Best Work Together to Sell This House?  The agent-seller relationship is a partnership. Ask what you can do to help.

21. What Can I Do to Get This House Ready for Showings?  Selling a home can sometimes be a full-time job for sellers, too, to keep a house spic and span for home showings.

22. Do I Need Professional Stagers for My Home?  A realtor will come up with a plan for showings about how the house should look. That might include professional stagers—which a good agent will provide for free.

23. What Should I Already Be Packing Up?  Preparing for a listing and then showing the home will almost always include the sellers removing personal property from the home, whether a professional stager is involved or not.

Ask what the realtor believes should go—the clutter of children’s toys, the wall full of family photographs, the bed from a room that will be staged as an office—and get a head start on packing for the move.

24. What Are The Closing Costs?  Be prepared for the upfront costs sellers may need when closing on a home offer. The total costs will depend on the buyer’s offer, but an agent should be able to estimate the money sellers need on hand. They can include attorney fees, title fees, broker commission, appraisal fees, and more.
20 Comments

Buy or Rent Online Calculator From Fidelity

10/24/2018

0 Comments

 
Fidelity has a free online calculator that helps you evaluate whether buy or rent.  It considers most of the important factors in the rent vs buy decision process.

If you are in the process of evaluating whether to buy or rent, give this Fidelity online buy vs rent tool a try!

0 Comments

2018 Tax Deduction Questions Answered by an Expert

8/23/2018

0 Comments

 
Financial planning expert Michael Kitces explains the changes to deducting mortgage interest and home equity loan interest for the 2018 tax year.
0 Comments

How to Determine If Eliminating PMI Makes Sense or Not?

7/25/2018

0 Comments

 
Q. How to evaluate the ROI from eliminate Private Mortgage Insurance (PMI)?

A.
 Saving up a “traditional” 20% down payment can be difficult for many individuals.  As a result, many borrowers end up paying private mortgage insurance(PMI), in order to cover the lender’s risk that the proceeds from foreclosing on a property would not be sufficient to cover the outstanding liability of a mortgage.

On the one hand, PMI is therefore valuable to borrowers as it creates opportunities for homeownership for those that don’t have enough cash saved up to put 20% down (it is effectively the “cost” of buying a home without a traditional down payment), but, at the same time, PMI can seem like an expensive drain on a borrower’s cash flow, making it enticing to pay down the debt to eliminate the need to pay PMI.

How to determine the ROI in eliminating PMI?  Here is a great article that discusses this topic.

0 Comments

Should I Take Seller-financed Mortgage or Not?

7/2/2018

0 Comments

 
Q. I was offered a seller-financed mortgage for a house I plan to buy, should I take it?

A.
You should not take a seller-financed mortgage if the reason you take it is your lender believes the sale price is inflated or there is a problem with the house.  

However, a seller-financed mortgage could be a great deal if the loan terms are competitive ad doing so helps you get the house you want, either because your credit rating is poor or your income level is low.

0 Comments

What Particulars to Look For When Buying a Condo?

6/30/2018

0 Comments

 
Q. I am buying a condo, I know I need to review board's meeting minutes and other documents.  What specifics should I look for?

A.
When you buy a condo, make sure check the following -
  • There are detailed, well-kept minutes of the regularly held board meetings
  • Any plan for big infrastructure projects, and how the projects will be funded
  • How much is the reserve fund and is it invested conservatively
  • Has the condo fee been stable or has it risen drastically, can you handle the condo fee if it will rise 5% per year for 10 years?
  • are majority of units owner occupied or not
0 Comments

Getting Married and Both Have a House, Which One to Keep?

6/29/2018

0 Comments

 
Q. We are getting married and both of us own a house in the same city.  Which one should we keep?

A.
There is a saying - you can remodel your home, but you can't remodel the neighborhood.

The answer should be keeping the home with the more desirable neighborhood - convenient to shopping, close to restaurants, a library or a park is nearby, etc.  You can remodel this home with profits from selling the other house.
0 Comments

Buy or Rent When Retire Early and Move to a New Place?

6/28/2018

0 Comments

 
Q. I will retire early and move to a new place.  Should I buy or rent at the new place?

A.
If you buy, you might be able to build equity in your new house.  However, if you rent, you could invest your profit from selling your current house.  Furthermore, when you move to a new place, it typically takes a while (at least 1 year) to determine if you really love or hate the new place, so rent could give you that flexibility to move again, if needed.

0 Comments

5 Questions Help You Determine Buy or Rent a House

6/13/2018

0 Comments

 
Q. How do I determine whether to buy or rent a house?

A.
Fidelity has an article that outlines 5 questions one should answer in order to determine whether it's better to buy or rent a house, it's worth checking it out and answer them yourself if you are trying to determine whether to buy or rent.

0 Comments

12 Steps to Take If You Want to Get the Lowest Rate Mortgage

6/12/2018

0 Comments

 
Q. What's the best way to get the lowest rate mortgage refinance?

A.
Follow the 12 steps below and you will get the lowest rate mortgage rates!

​No. 1: Raise your credit score
Typically, a credit score of 740 or higher puts you in the best tier for a conventional loan program.  Most lenders require a minimum credit score of 620 to 640, but you'll pay a higher mortgage rate for conventional loans unless your score is 740 or above. However, some portfolio lenders set their own guidelines.

No. 2: Lower your debt
A good rule of thumb is to make sure your debt-to-income ratio is no more than 36%, and even lower is better. Even if you have a high credit score, you may be denied a refinance altogether or subjected to higher interest rates if your DTI ratio is too high.

No. 3: Increase your home equity
Your credit scores and the loan-to-value ratio of your property could have a much bigger impact on your refinance rate than a slight shift in average mortgage rates.  Both a lower-than-average credit score and a high loan-to-value can lead to a more expensive interest rate.

If you are underwater on your mortgage, a Home Affordable Refinance Program (HARP) loan may be your best option. 

No. 4: Organize your financial documentation
You should get your credit reports from all three bureaus to make sure there are no mistakes that need correcting before you apply for a refinance.

A refinance application typically requires two years of tax returns with W2s, two recent pay stubs, and your two most recent bank and investment statements.

Gathering these materials ahead of time can expedite the loan process and prevent you from paying extra for an extension of your rate lock.

No. 5: Save cash for closing costs
Closing costs average about 2% of the loan amount.  You can pay cash for the closing costs or, if you have enough equity, you can roll these costs into your new loan.  Another option that some lenders offer is to pay a higher interest rate for a lender credit to cover those costs.

Shop smart for your refinance
Once your preparations are complete, you can begin to shop around for the refinance that works best for you.

No. 6: Start online
Start online with a refinance calculator that estimates your monthly payments at various loan terms.

A shorter term loan will have a lower interest rate than a 30-year fixed-rate loan, but the payment will be higher because you're paying it off faster.  It's important to decide what payment you're comfortable making before you see a lender, because that payment could be much less than the payment you qualify for.

No. 7: Decide on a loan term
The loan term you choose needs to be made in the context of your other financial obligations and plans.  If you have $30,000 in credit card debt and no savings for college, you may want to go for a 30-year loan to keep the payments as low as possible.  Someone else may want a shorter term to build equity faster while another borrower might want a longer loan so they can keep their tax deduction as long as possible.

No. 8: Talk to multiple lenders
Once you've decided on your loan term, it's time to research loan products available from a credit union, a regional or community bank, a direct lender and a national bank to find out what special programs they offer.

Many lenders offer "portfolio loans" - ones they keep in-house instead of selling on the secondary market.  They can be more flexible with those loans and offer special promotions.

Instead of choosing a lender solely based on current mortgage rates, you need to find a lender you can trust. 

No. 9: Review all your loan options
Lenders can discuss various loan products when you interview them.  There's a broad product mix of conventional financing, government-backed programs like FHA loans and special refinancing programs through the Making Home Affordable program.  A good lender can present the pros and cons of each of these programs in the context of your individual finances.

No. 10: Decide how you will finance your refinance
You'll also need to decide how to pay for your refinance. Closing costs and lender fees can be paid at closing, wrapped into your loan balance or you can opt for a "no-cost" refinance.  A no-cost refinance means that your lender will pay the fees and you'll pay a slightly higher interest rate of one-eighth to one-fourth percent.

HSH.com's "Tri-Refi" refinance calculator can help you decide the best way to finance your refinance.

No. 11: Compare mortgage rates and fees
Advertised mortgage rates are sometimes based on paying points, so you need to make sure you compare loans with zero points or the same number of points.

It's important to shop for the same loan on the same day to get a true comparison of mortgage rates, because mortgage rates change every day.  You need to explain to each loan officer all the criteria for your refinance, not just ask 'what's today's rate on a $200,000 loan?  You should also ask about loan processing times.

Shopping by APR can be confusing, since different lender fees and policies can affect the outcome. It is possible for two loans to have identical rates and fees and different APRs. Conversely, two loans could have the same APR but different interest rates. Because of this, it is usually better for you to focus instead on the two most important components of APR: interest rate and fees.

The most important component of your refinance will generally be the interest rate, so you'll of course want to pay attention to that. Fees and closing costs matter, but whether you want or need to pay them will depend upon your situation. There are times when paying costs to obtain the lowest possible rate can make sense and times when it does not.

No. 12: Know when to lock in your rate
Once you've finalized your loan decision you should consult your lender about when to lock in your rate.

Processing times for different lenders can range from 30 to 45 days to more than 90 days.  Typically, lenders will do a 30- or 45-day rate lock, so you should be consulting with your lender to determine the appropriate day to lock your loan. If you have to extend the lock or relock your loan, that will likely cost you more money.

While shopping around for a refinance may take a little longer than refinancing with your current lender, the rewards can last as long as your loan.
0 Comments

A Scoring System to Determine if You Are Ready to Buy a Home

5/18/2018

0 Comments

 
Q. How do I determine if I am ready to buy a home?

A.
Try to answer the following 10 questions to determine if you are ready to buy a home:
  • Are you sure you want to buy a home? Yes = 1 point.
  • Do you anticipate any large expenses in the next two years, such as buying a car or having kids? No = 1 point.
  • Do you expect to stay in your current job for the next two to three years? Yes = 1 point.
  • Do you expect your job to stay in the same location for the next three to five years? Yes = 1 point. (Is your employer thinking of relocating? How do you know until you ask?)
  • Do you know how much you can realistically afford to pay for housing? Yes = 1 point.
  • Do you have a favorable credit record? Yes = 1 point.
  • Do you have enough money for the down payment and closing costs? Yes = 1 point.
  • Have you been prequalified for a mortgage so you know how much you can borrow? Yes = 1 point.
  • Will your existing debt reduce your ability to qualify for a mortgage? No = 1 point.
  • Is the amount you can borrow enough to enable you to buy a home you can truly enjoy? Yes = 1 point. (Don’t settle for something you don’t love, for you could well live in your home for a very long time.)
If you scored 8 points or more, you’re ready to buy a home.
0 Comments

How To Know If I Am Ready To Buy A New Home?

2/24/2018

0 Comments

 
Q. How do I know I am ready to buy a new home?

A.
Try to answer these 10 questions to learn if you are ready to buy a home:
  • Are you sure you want to buy a home? Yes = 1 point.
  • Do you anticipate any large expenses in the next two years, such as buying a car or having kids? No = 1 point.
  • Do you expect to stay in your current job for the next two to three years? Yes = 1 point.
  • Do you expect your job to stay in the same location for the next three to five years? Yes = 1 point. (Is your employer thinking of relocating? How do you know until you ask?)
  • Do you know how much you can realistically afford to pay for housing? Yes = 1 point.
  • Do you have a favorable credit record? Yes = 1 point.
  • Do you have enough money for the down payment and closing costs? Yes = 1 point.
  • Have you been prequalified for a mortgage so you know how much you can borrow? Yes = 1 point.
  • Will your existing debt reduce your ability to qualify for a mortgage? No = 1 point.
  • Is the amount you can borrow enough to enable you to buy a home you can truly enjoy? Yes = 1 point. (Don’t settle for something you don’t love, for you could well live in your home for a very long time.)
If you scored 8 points or more, you’re ready to buy a home.

0 Comments

5 Strategies to Save Money Under the New Tax Law - Home Buying

2/14/2018

0 Comments

 
Strategy to consider under the new tax law - Avoid the big and expensive home

What is Changed?
Under the previous tax law, you can deduct mortgage interest on up to $1 million in debt.

Under the new tax law, you can only deduct interest on the first $750,000 or mortgage debt, and this applies to qualified residence.  Also, the interest on home equity lines of credit (HELOC) and home equity loans, used to be deductible on loans up to $100,000 even if you did not use the funds for home improvement, now can not be deducted unless the loan is related to home improvement or acquiring or building a home.

What to Do?
Consider buying a less expensive home or trying to reduce the size of the mortgage by increasing the down payment.  Also, before taking out a HELOC loan, evaluate the cost of doing so if there is no tax deduction on the interest you pay.

0 Comments

How to Make Escrow Go Smoothly When Selling a Home

2/11/2018

1 Comment

 
Q. I am selling my home, any tips I should follow to make sure the escrow process go smoothly?

A.
Escrow is a 30-40 days period when a third party holds the buyer's funds until both you and the buyer meet contractual requirements.  Here are a few things any home seller should do:  

When you receive an offer, add the clause "exact legal description to follow in escrow" to the offer.  This gives you time to address any issues found during the escrow process, such as a clerical error that affects the deed of your property. 

Limit closing adjustments by striking out the phrase "any other acceptable to buyer" in the contract, which can lead to you being charged costs that are not your responsibility.  Also delete this phrase if it appears in the list of exceptions - any exceptions, such as easements, should be clearly spelled out.

Ask your agent what time is reasonable for the buyer to review your seller disclosure, which discloses problems such as a large stain on the carpet or termite damage.  

Remove any buyer language asking for copies of all instruction manuals for appliances, original blueprints and other documents, which you may not have.

1 Comment

How to Acknowledge Satisfaction of Judgement?

11/21/2017

0 Comments

 
Q. I am done with collecting judgement, what do I need to do now?

A.
Within 14 days of the judgment being fully paid, the judgment creditor must file an Acknowledgment of Satisfaction of Judgment (EJ-100) with the clerk.  The judgment creditor may be liable for $50 plus actual damages for failing to file the Acknowledgment of Satisfaction within 14 days of receiving a written demand to do so from the judgment debtor.

0 Comments

How to Recover Cost of Collecting Judgement?

11/20/2017

0 Comments

 
Q. How do I recover the cost associated with collecting a court judgement?

A.
A judgment creditor is entitled to recover certain costs incurred in enforcing a judgment.  The judgment creditor is also entitled to claim 10% simple interest on the principal amount of the judgment.  Costs must be added to the judgment within two years of incurring them. Interest may be added at any time.

Accumulated costs and interest are added to the judgment by filing a Memorandum of Costs After Judgment, Acknowledgment of Credit, and Declaration of Accrued Interest (MC-012) with the clerk.  Complete the form and have it sent by first class mail or served personally on the judgment debtor by a non-party to the action who is at least 18 years of age.  After serving the judgment debtor, file the original with the clerk.

0 Comments

How to Garnish a Debtor's Rental Income?

11/19/2017

1 Comment

 
Q. How to garnish a debtor's rental income after winning a court judgement?

A.
If the judgment debtor owns rental property, you may garnish the rents paid by the current tenants.  The procedure is the same as wage garnishment, except you instruct the Sheriff's Department to do a rent garnishment instead of a wage garnishment.  There is a fee for the Writ of Execution and for the Sheriff's Department to serve the rent garnishment. 

1 Comment

How to Place a Judgement Lien on a Debtor's Real Property?

11/18/2017

0 Comments

 
Q. How to place a judgement lien on a debtor's real property?

A.
If you have won a court judgement, you can place a lien on the debtor's real property:

  • If the judgment debtor owns real property, you may record an Abstract of Judgment with the County Recorder which will act as a lien against all real property owned by the judgment debtor in the county in which the lien is recorded.  Complete an Abstract of Judgment (EJ-001) and submit to the court to be issued.  There is a feefor the Abstract of Judgment. Once the Abstract has been issued by the court, record the Abstract at the County Recorder's Office.

  • The Abstract places a lien on any real property owned by the judgment debtor located in the county in which it is recorded. Before the judgment debtor's real property can be sold or refinanced, the lien must be satisfied.  NOTE: You may record an Abstract of Judgment in any county in which the judgment debtor owns property.
0 Comments

How To Do Till Tap or a Keeper's Levy?

11/17/2017

1 Comment

 
Q. How to do Till Tap or a Keeper's Levy after winning a court judgement?

A.
If the judgment debtor owns a business that has a cash register, you may arrange for a Deputy Sheriff to go to the business and do either a Till Tap or a Keeper's Levy.
  • A Till Tap sends a Deputy Sheriff into the business to take all cash and checks out of the cash register.
  • A Keeper's Levy stations the Deputy Sheriff at the business for 4 or 8 hours to collect money as it is paid to the business.
The Sheriff's Department charges a fee to serve the Writ of Execution.  Remember that the judgment debtor may close his or her business for the day and the Deputy Sheriff would be unable to collect any money.  

Certain money is exempt from levy, such as child support payments.  If the judgment debtor files a Claim of Exemption from the levy, you will be notified and will have an opportunity to oppose any claim of exemption.

1 Comment

How to Levy Bank Funds After Winning a Court Judgement?

11/16/2017

0 Comments

 
Q. How do I levy bank funds after winning a court judgement?

A.
If you know the bank and branch where the judgment debtor (or spouse) has a deposit account, you may levy the funds in the account.

To begin this procedure, you must file a 
Writ of Execution (EJ-130) and pay the fee with the clerk.  Once the clerk has processed the writ, take the original writ to the Sheriff's office and request a bank levy.  After the Sheriff's Department serves the levy, the bank account is frozen and the account holder is notified.  The Sheriff's Department charges a fee for this service.

0 Comments

How to Do Wage Garnishment?

11/15/2017

0 Comments

 
Q. How to garnish wage?

A.
If the judgment debtor is employed, his/her wages may be garnished to pay off the judgment.  To begin the wage garnishment process, you should do the following:
  1. File both a Writ of Execution (EJ-130) and a Memorandum of Costs After Judgment (MC-012) and pay the filing fee to the clerk.
  2. Once the clerk has processed the writ, take the original writ to the Sheriff's office and request an Application for Earnings Withholding Order.  Note: Fill out the forms completely with the employer's name and address and the judgment debtor's full name.
  3. Pay the Sheriff Department fee to serve the wage garnishment.
The Sheriff's office can tell you how soon the garnishment should begin after it is served, and how much of the judgment debtor's wages may be garnished per pay period.


0 Comments
<<Previous

    Author

    PFwise's goal is to help ordinary people make wise personal finance decisions.

    Archives

    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013

    Categories

    All
    Annuity
    Book Reviews
    College Finance
    Finance In Formula
    Financial Scams
    For Entrepreneurs
    Healthcare
    Insurance
    Investment
    Miscellaneous
    Real Estate
    Retirement
    Savings
    Savings Ideas
    Stock-ideas
    Tax
    Tax-related

    RSS Feed

Copyright © 2013 - 2022 PFWise.com, All Rights Reserved. 
IMPORTANT DISCLOSURES
PFwise.com does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that any material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
About Us | Contact Us 
中文