Shielding real estate assets with solid wills during COVID-19 period
July 28, 2020
Protecting properties with strong wills during COVID-19 period? Being careless with credit. Lenders pull credit reports at preapproval to make sure things check out and again just before closing. They want to make sure nothing has changed in your financial picture. How this affects you: Any new loans or credit card accounts on your credit report can jeopardize the closing and final loan approval. Buyers, especially first-timers, often learn this lesson the hard way. What to do instead: Keep the status quo in your finances from preapproval to closing. Don’t open new credit cards, close existing accounts, take out new loans or make large purchases on existing credit accounts in the months leading up to applying for a mortgage through closing day. Pay down your existing balances to below 30 percent of your available credit limit, and pay your bills on time and in full every month.
Your house should always be ready to show at any time because you never know when a buyer is going to come check it out. This means you should not leave dirty dishes in the sink and the dishwasher should be empty. You should also not have dust bunnies rolling around in corners and bathrooms should be sparkling. People who are house hunting are imagining a fresh start and this requires bringing back a few elements that will make your home more appealing. If you have doors hanging off of hinges, holes in walls, or children’s toys scattered all over the yard and in the living room, this is a huge turnoff for buyers because it gives the impression that you do not care about the existing condition of the home.
If on-line sources are to be believed, a variety of electronic “do it yourself cheap” will kits have been picked up widely, with members of the public latching on to claims that they are simple and cheap and don’t take a lot of time to prepare. It can only be a source of wonder as to how many of them are actually being completed and signed anywhere near properly. For estate litigators, this may be the source of work for the future. Read more details on protect myself during coronavirus.
Video-witnessing should therefore be a last resort for those cases when there is no other option for getting a Will signed. The government have issued guidance on the steps to be followed. All parties need to be present at the same time by way of a two or three-way live video link. The witnesses must be able to see the will-maker signing the document, not just their head and shoulders. The Will/Codicil then needs to be taken or posted to the witnesses to add their signatures, again via further live video session(s) with clear sight of the witness signing.
Break Down Your Income & Expenses: Credit for this one goes to user GeekLimit on Reddit – one of my favorite personal finance tips! This is an odd little trick that can change the perspective you have about your money, and help you budget better. It’s all about breaking your income and expenses down into daily values, like this: You make $2,500/month = ~$83/day. You pay $800/month for rent = ~$27/day. You pay $200/month for car insurance = ~$7/day. Everything else (food, phone, gas, etc.) comes to $750/month = ~$25/day. That means you’re left with $24/day in spending money. Want to save $1,000 for a nice vacation? You’ll have to save about 42 days worth of your spending money. That means 42 days of not spending a dime. Want to buy a new $10,000 car? That’s about 416 days worth of your spending money. This will help you see how far purchases are going to set you back and affect your spending ability.
We have seen lenders ask for, and borrowers agree to, enhanced information covenants, including the delivery of updated compliance certificates following a payment default by a tenant where the borrower is a landlord of a multi-let property. Some lenders are exercising their rights under loan agreements to block distributions to investors, thereby minimizing any leakage from the structure. Others are allowing for the release of funds to investors once the loan has been stabilized following an equity cure. For our Middle Eastern sponsor client base, release of distributions to their investors has been a key factor in re-negotiating the terms of their existing loan agreements. Having said that the practicalities of the current market has meant that in many cases there is very little (if any) cash available for distributions, even in the cases of stablised loans. Discover additional info on https://techbullion.com/wills-and-covid-19-safeguarding-your-assets-during-a-global-pandemic/.