How to decide if homeownership is your best move

I recently met a woman in her late 40′s who was feeling frustrated by the fact that she had no time for a social life. She is balancing a job as a freelance make-up artist with the costs and care associated with her home.

This woman’s frustration was rooted in the fact that she couldn’t see her how most important life goal, having a family, would ever come to fruition.  “When I think back on my childhood, I always remember saying I can’t wait to get married and have children,” she told me. When we reflected further on her childhood, another image that came up strong was her grandmother’s mantra, “Every time you make a dollar, save half of it so that you can grow up and buy a home.” Read More...

Having a legal will is an essential step to help ensure that your assets are distributed according to your wishes. However, in some cases you may also want to make provisions through a trust.

Unlike a will, certain trusts might accomplish goals during your lifetime, provide greater control of your assets after your death, offer tax benefits, and/or avoid the often expensive and time-consuming probate process.

Basic Terms and Structures
A trust is a legal arrangement under which one person or institution controls property given by another person for the benefit of a third party. The person giving the property is referred to as the trustor (or grantor), the person controlling the property is the trustee, and the person for whom the trust operates is the beneficiary. With some trusts, you can name yourself as the trustor, the trustee, and the beneficiary.

A testamentary trust becomes effective upon your death and is usually established by your last will and testament. One common use of a testamentary trust is to ensure that assets left to children or others are distributed by a trustee who is chosen by you to carry out your wishes and work in the best interests of your heirs.

A living trust takes effect during your lifetime. When you set up a living trust, you transfer the title of all the assets you wish to place in the trust from you as an individual to the trust. Technically, you no longer own the transferred assets. If you name yourself as trustee, you maintain control of the assets and can buy, sell, or give them away as you see fit. However, this option may negate any estate tax benefits.

Living trusts can be either revocable or irrevocable. A revocable trust can be dissolved or amended at any time while the grantor is still alive. An irrevocable trust may be modified or revoked only with the consent of the trustee and the beneficiary, depending on state laws. Both types of living trusts avoid probate and may provide other benefits not offered by a will or a testamentary trust (see chart). A testamentary trust is irrevocable by definition, but the grantor could change it by amending the will that established the trust. READ MORE

You have a Junior Lien? No Problem. HAFA Guidelines for junior liens also changed. First Lien holders in a HAFA Short Sale were charged to provide $8500 from sale proceeds to junior lien. This amount has now increased to $12,000.00. READ MORE