Homeowners Protection Act for Borrowers With Private Mortgage Insurance (PMI)

PMI or Private Mortgage Insurance, protects lenders against certain risks when borrowers default.  Charges for PMI are added to your loan payments. If is not the same as property or casualty insurance, such as a homeowners, floor or wind insurance – which protects you against damage to your property.  PMI protects only the lender.  Cancellation or termination of PMI does not affect any obligations you may have to maintain other types of insurance.

For loans closed Before July 29, 1999 – under certain circumstances you may be able to cancel PMI. You need to call your lender for guidelines or follow state law.

If your loan closed after July 29, 1999, you have the right to cancel PMI when:

  1. The date the principal balance of y our loan is first scheduled to reach 80% of the original value of the property; or
  2. The date the principal balance actually reaches 80% of the original value of the property. Original value means at origination of your loan, the lesser of appraised value or sales price.

In these cases, PMI can only be cancelled by calling your lender, making a written requests and having them coordinate an appraisal.

If your loan closed on or after July 29, 1999, PMI will also automatically terminate if your are current on your loan payments and on the earlier of (1) the date the principal balance of your loan is scheduled to reach 78% of the original value or (2) in accordance with investor guidelines.

PMI automatic termination does not apply to mortgages secured by two to four unit principal residences or investment properties.

For more information, call to  speak to real estate attorney Jacqueline Salcines, PA, today. She holds a dual degree in both accounting and law and can provide both tax and legal advice.   The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FLORIDA 33146
TEL: 305 | 669 | 5280
DIRECT EMAIL:  J.SALCINES@SALCINESLAW.COM
 
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HAVE YOU APPLIED FOR YOUR HOMESTEAD EXEMPTION?

foreclosure_defense Florida Homestead Exemptions provide significant tax discounts for US Citizens and residents that own property in the United States that are classified as their “homestead”.  Property owners who can provide proof of residency including:

  • Warranty Deed
  • U.S. Passport or Residency Card
  • FPL or Water bill showing you reside in the home

become eligible for such exemptions that can include:

  • Regular Exemption for $50,000.00
  • Senior Citizen Exemption
  • Low Income Exemption

Moreover, the Homestead Exemption not only gives a significant tax discount but also caps the tax increases from year to year at no more than 3% of the prior years tax.  This cap continues year to year as long as the homeowner homestead automatically renews because the owner continues to reside in the property as their “primary residence”.

The deadline for filing is March 1, 2016.

  1. Several locations are available including:
  2. John F. Kennedy Library in Hialeah
  3. West Dade Regional Library  in Westchester
  4. South Dade Government Center in Cutler Ridge/Homestead
  5. McDonald Center in North Miami Beach

Or you can call us to learn all about the exemptions available to property owners.

For more information, speak to real estate attorney Jacqueline Salcines, PA, today. She holds a dual degree in both accounting and law and can provide both tax and legal advice.   The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FLORIDA 33146
TEL: 305 | 669 | 5280
DIRECT EMAIL:  J.SALCINES@SALCINESLAW.COM
 
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Buying Real Estate in Miami Dade County just got more complicated

A recently announced new program created by the U.S. Treasury Department will soon result in the uncovering of the names of luxury real estate buyers in Miami-Dade County and New York City.

“In Miami-Dade County, the rule will apply to all cash sales worth more than $1 million; in New York City, it applies to sales $3 million or higher. The test program runs from March through August.”  The purpose of the program is to disclose or weed out any money from the black market or illegal funds.

And, the Treasury Department will not be the only federal agency to increase oversight of luxury home sale buyers trying to hide ill-gotten gains. “The Justice Department will start to focus on real estate deals separately rather than include them in bigger transactions; and the Federal Bureau of Investigation (FBI) plans to create a new unit that focuses on money laundering with real estate “a central emphasis.”

The emphasis will be on shell companies which are often LLCs or other partnerships.  This will put more scrutiny on title insurance companies who will not be required to discover the actual identities of cash buyers and report their information.

Under Treasury rules, a “beneficial owner” – one whose name must be sent to the department – are “each individual who, directly or indirectly, owns 25 percent or more of the equity interests.”

Source: The New York Times, Jan. 13, 2017, Louise

For more information, speak to real estate attorney Jacqueline Salcines, PA, today. She holds a dual degree in both accounting and law and can provide both tax and legal advice.   The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FLORIDA 33146
TEL: 305 | 669 | 5280
DIRECT EMAIL:  J.SALCINES@SALCINESLAW.COM
 

 

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