Sacramento Homes and Condos

Sacramento real estate law

The California Real Estate Law Blog”

A resource for real estate legal and business issues by Weintraub Genshlea Chediak Sproul, a law firm based in Sacramento, California

Continue Reading May 3rd, 2005

Title Insurance for Home Owners

When buying a home with a mortgage, buyers are required by the mortgage lender to obtain a title insurance policy. However, the title insurance which most buyers get is coverage that protects only the lender. If a defect is found in the title, such as a previously-unknown lien, mortgage, or easement, the lender is protected up to the amount of insurance, but the owner is not. The home buyer needs to obtain (at extra cost, to be sure) an owner’s policy that will protect his investment in his new property. A knowledgeable realtor can explain the differences in coverage between various policies.

Continue Reading April 1st, 2005

Sacramento Real Estate

Sacramento Real Estate investors who buy houses to hold for a short time before “flipping” them for a profit may find it harder to get home loans or property mortgages. Two of the largest mortgage insurance companies in the country have announced that they will limit the number of loans and the dollar amount of mortgage insurance they will allow to an investor. A knowledgeable Sacramento real estate broker can usually help with such problems.

Continue Reading March 24th, 2005

Adjustable Mortgages Less Attractive

< Sacramento home buyers shopping for a mortgage may find adjustable-rate loans less attractive than last year, since the “spread” between fixed and adjustable rates has narrowed drastically. Mortgage Lenders are “offering larger and larger discounts to encourage borrowers to give adjustables a second look,” according to Lew Sichelman in the Los Angeles Times (3/6/05). He goes on to say, however, that the discount may not compensate for the risk of much higher future payments. Sichelman quotes Frank Nothaft, chief economist for Freddie Mac, as saying, “Unless you need a mortgage for just a year, this kind of loan doesn’t make much sense.” When buying a home, buyers should analyze their needs and the possible long-term costs of various types of mortagage loans.