Shielding assets with solid wills during coronavirus period? Looking for a home before applying for a mortgage. Many first-time buyers make the mistake of viewing homes before ever getting in front of a mortgage lender. In some markets, housing inventory is still tight because there’s more buyer demand than affordable homes on the market. And in a competitive market, you could lose a property if you aren’t preapproved for a mortgage, says Alfredo Arteaga, a loan officer with Movement Mortgage in Mission Viejo, California. How this affects you: You might get behind the ball if a home hits the market you love. You also might look at homes that, realistically, you can’t afford. What to do instead: “Before you fall in love with that gorgeous dream house you’ve been eyeing, be sure to get a fully underwritten preapproval,” Arteaga says. Being preapproved sends the message that you’re a serious buyer whose credit and finances pass muster to successfully get a loan.
You want to be able to distinguish your house from other homes for sale on the market and one way to do so is to throw in a few freebies. This can be done by leaving behind some of your personal property that is valued above and beyond what the average home buyer in your home’s price range would typically not be able to afford. These items can range from a big screen smart TV to high-quality stainless steel kitchen appliances. If you live near a lake or a golf course, you may want to throw in a fishing motorboat or a golf cart.
Most will allow sales at the advice of the trustee, even if purchases or distributions of funds are not permitted while the application is in the courts. Where losses have occurred, tax advice will probably be needed to ensure that as much damage control as possible is carried out. In many cases it seems that the concept of remote working, meeting with clients by way of video calls, remote swearing of affidavits and even remote signing of documents have become more common place and accepted. However if there is a cautionary tale to be drawn it is that the underlying rules of professional expertise, client protection and trustee responsibilities have not changed, they are just being exercised somewhat differently. Find even more info at Coronavirus.
Electronic signatures and counterpart documents are not permitted and all sessions should be recorded if possible. A special ‘attestation clause’ explaining that the Will has been witnessed virtually is advised and further guidance is expected to follow from professional bodies. This more convoluted and long-winded process carries more risk of the Will being ineffective, e.g. if the will-maker dies before the process has been fully completed. However a Will is signed, the basic formalities must still be observed, ie the will-maker must understand what they are doing and not be unduly influenced by anyone; witnesses should also have the requisite capacity and must not be beneficiaries or spouses/civil partners of a beneficiary. Professional advice should ideally be sought in all cases.
You might hear the word “budget” and cringe a little, but you shouldn’t. Budgeting is not hard, and it doesn’t mean you have to stop doing things you enjoy. Budgeting is simply creating a plan for your money so you have a better idea of where it’s going every month. A popular and effective way to budget is with the 50/30/20 rule. How it works is 50% of your income goes towards the necessities (bills, food, housing, etc.), 20% of your income goes towards savings and the remaining 30% you can use for whatever you please. This is a nice and easy way to break down your paycheck, but you might need to adjust it a bit to fit your lifestyle. Mortgage: This one’s a tricky one, but mortgages are generally considered good debt. They are usually long-term loans with low interest rates, so you’ll still have money freed up for investments and such. The interest from mortgages is also tax deductible, so that’s a bonus. In the end, it’s up to you to decide whether purchasing a home is the right move, as the value of a house will not always rise as some people think. You’ll also have to add in the expenses of property tax, utilities, and home insurance.
Real estate finance transactions have witnessed breaches, and potential breaches, of loan to value ratios (LTV) and/or interest cover ratios. Some lenders have been amenable to agreeing to LTV covenant holidays up to a period of one year (and the waiver of their rights to obtain property valuations at the borrowers’ cost for the corresponding holiday period). This has in particular been the case in the retail sector and in relation to loans that were performing pre-COVID 19. Other lenders have agreed to equity cures of financial covenant breaches, with some lenders acting in a spirit of co-operation and going as far as waiving any prepayment penalties resulting from an equity cure. We have also seen an increase in the use of cash trap and cash sweep provisions under existing facility agreements to preserve cash in the structure and ensure the servicing of debt. See more info at https://techbullion.com/wills-and-covid-19-safeguarding-your-assets-during-a-global-pandemic/.