J uly 20,1994 • T he P ortland O bserver
P age A6
Homeowner’s Rights:
Test Your Title Insurance IQ
The investment in your hom e
may be the m ost im portant invest
m ent you’ll ever make. But do you
k n o w a b o u t y o u r r ig h ts a s a
hom eow ner? More im portantly, do
you know that having title insurance
is one of the best ways of ensuring
your hom eow ner’s rights?
Uninsured hom es present m any
cost risks to owners. In contrast, ha v
ing title insurance elim inates these
risks and protects your investm ent.
The following quiz, provided by the
Chicago T ide and Trust Fam ily o f
T ide Insurers, tests your aw areness o f
your home ow nership rights and w hat
you may lose if your hom e is not
insured.
1. Lenders protect their interests
when providing to home buyers
by obtaining a loan policy of title
insurance. This policy...
a. ...f u lly c o v e rs th e h o m e
purchaser’s interest
b. ...covers one-half o f the h o m e
purchaser’s interest
c. ...covers an amount o f the hom e
purchaser’s interest that is n eg o ti
ated by the lender and purchaser
d. ...d o e sn o tco v eran y p arto fth e
home purchaser’s interest o r eq
uity
2. If a home owner does not have
title insurance protection, what
does he stand to lose financially
and legally?
a. half of his down payment price
b. half of any legal costs that re
sult from defending his property
interests
c. all o f the down payment price,
any legal costs that result from
defending his properly interests
and the property’s title
d. halfofhis down paymentprice,
plus the property’s ude
3. T ru e o r false: If you lose your
property because someone else
successfully claims rights to it,
you still ow the remaining balance
on your note.
a. True
b. False
4. T ru e o r false: Your equity in a
property cannot be affected by
being uninsured.
a. True
b. False
5. If you buy title insurance, it guar
antees that...
a. ...no o ther individuals can
claim any right to your home
b. ...the title insurer will defend
any lawsuit attacking your title as
insured
c. ...the title insurer will clear up
title problem s, but not pay the
insured’s losses
d. ...All o f the above
a. M istakes in recording legal
documents
b. Forged deeds, releases or wills
c. Instrum ents executed under
valid power of attorney
d. M isinterpretation of wills
7. True or false: The property of
current owners may be sold to
satisfy estate taxes that were
owed by previous owners.
a. True
b. False
8. Title insurance coverage costs:
a. One-fourth o f the hom e’s price
b. Up to one-half of the hom e’s
price
c. Varies from state to state
d. None of the above
9. Payments for title insurance are
typically made...
a. ...over a 10-to 12-year period
b. ...on a case by case basis
c. ...in one lump sum when the
home is purchased
d. ...in one lump sum after the
mortgage has been fully paid
10 Title insurance coverage lasts...
a. for 5 ,1 0 or 15 years, depend
ing on the type of cover purchased
b. as long as the home is owned
by the same owner
c. throughout the life of the m ort
gage
6. Of the following, which is not a
d. for one year, renewable every
year
C o rre c t answ ers: 1) d; 2) c; 3)
a ; 4) b; 5) b; 6) c; 7) a; 8) c; 9) c; 10)
b.
T ally yo u r score:
8 to 10 answ ers co rrect: Con
gratulations! You know your home
ow ner’s rights, and would be pre
pared if someone challenged your
claim s to your property.
7 to 5 answ ers c o rre c t: Not bad!
Though you cold benefit from know
ing a few more home owner facts,
you’ve got a good sense of what your
rights are under the law.
4 to 3 answ ers c o rre c t: Time to
start studying! Y ou’re likely to wind
up on the losing end if someone suc
cessfully fought your ow nership
rights.
Less th a n 3 a n sw ers co rrect:
Uh oh! You stand to lose every right
to your hom e if you don’t learn about
title insurance protection. Get wise
now so that your home investment is
made safe.
K n ow ing a b o u t y o u r o w n e r
sh ip rig h ts p u ts you one step ahead
o f p ro b le m s th a t m ay arise w hen
p u rc h a sin g an d o w n in g a hom e.
S e c u rin g y o u r ho m e, n o tab ly w ith
title in s u ra n c e , p ro te c ts your in
v e stm e n t an d a llo w s you to re st
e a sy in the lo n g ru n .
e r s .”
P o te n tia l b o rro w e rs w ho do
n o t c u rre n tly o w n a h o m e a re e l i
g ib le to q u a lify fo r the 97% L T V
p ro g ram . Q u a lifie d b o rro w e rs can
e a rn up to 115 p e rc e n t o f th e
m ed ian h o u se h o ld in co m e o f th e ir
history.
“ M inority-owned and women-owned business play a vital role in
O regon’s econom y, and we want to do everything we can to help them
succeed,” said W. Charles Armstrong, chairman and chief executive officer
o f Bank o f A m erica Oregon.
During an introductory period through Aug. 31, 1994, Bank of
American will waive the traditional loan fee for new and existing customers
who apply for a loan or line of credit under the new program.
To be considered for the special financing program , a business m ust be
at least 51 percent owned and operated by one or more individuals who are
ethnic minorities or women, and established in business for a minimum of
two years.
The program features a line of credit which can be applied to a
borrow er’s working capital needs, receivables financing or cash flow
managem ent. A term loan for financing new equipment and business
expansion also is available. In addition, the bank can provide 100 percent
financing for equipm ent with no collateral requirement.
Minority and women entrepreneurs can borrow from S 10,000 - $50,000
under the line o f credit, with no collateral requirement. They will be able
to easily access funds form the line o f credit and make payments through
a toll-free telephone link to the bank.
Custom ers can borrow from $2,500 - $50,00 under the term loan, which
features repaym ent terms o f one to five years with no prepayment penalty.
Inform ation about the new program is available at any Bank of
A m erican branch in Oregon. In addition, Bank o f A merica serves m inority-
and women-owned businesses by offering SB A-guaranteed loans through
Appraising: The Road To Entrepreneurship
African American appraiser in Balti
more, Md., and also a member of the
Appraisal Institute’s Minority Rela
tions Committee, agrees. “ I became
interested in the profession in 1973
w hile working as an underwriter/ap-
praiser for an MAI appraiser at a
com m ercial bank in Baltimore. That
experience had a great influence on
my decision to pursue my MAI designa
tion through the Appraisal Institute.”
W hat exactly is an appraiser?
They are professionals who estimate
the value o f residential, commercial,
industrial, and agricultural real es
tate and its accompanying ownership
rights. Appraisers may also be called
upon to provide consulting services,
give expert testimony in court, and
serve on arbitration panels. As prob
lem solvers, they m ust have the abil
ity to exercise sound judgm ent, put
analytical skills into practice, and
communicate effectively with people
from all walks of life.
Appraisers employed by govern
ment agencies or financial institu
tions usually work standard hours,
while independent fee appraisers set
their own schedules. W hether sala
ried or independent, appraisers are
typically well compensated for their
work.
“The ' behind the scenes’ research
and analyses that appraisers conduct
makes them less visible than other
real estate professionals,” Thomas
said. “But it should not detour m i
norities form taking a closer look at
this field when weighing their career
options.”
Designated appraisers go beyond
a college degree to m aster the intrica
cies of their profession through spe
cialized education and most are state
New Loan Helps Consumers Become Home Owners
W ashington M utual, the No.
hom e lender in the N orthwest, has
introduced a new mortgage product
that requires a down paym ent o f only
3 percent and can be com bined with
an option that elim inates practically
all o f the traditional closing costs.
“ W ith th e risin g c o st o f h o u s
in g , i t ’s g e ttin g m o re an d m o re
d iffic u lt for p eo p le to co m e up
w ith a dow n p a y m e n t, e sp e c ia lly
firs t-tim e h o m e b u y e rs ,” said Jill
Jo n e s, W a sh in g to n M u tu a l’s a f
fo rd a b le h o u sin g a d m in is tra to r.
“ T h e new p ro g ra m sh o u ld h e lp us
b rin g m ore co n su m ers in to ho m es,
an d n o t ju s t first-tim e h o m e b u y
Bank of American has introduced a new program in Oregon to enhance
access to credit for minority- and women-owned businesses.
The new Minority- and W omen-owned Business Loan Program pro
vides loans up to $50,000 and offers simplified application, processing and
docum entation. Flexible underwriting allows for alternative methods of
credit verification, such as utility or rent paym ents, and a limited operating
its Portland G overnm ent Guaranteed Loan Center.
> Ü1 1I1MÎ
“Real estate appraising is a fasci
nating career, but it is still som ething
o f an enigma to most people,” accord
ing to Lee Hill, M AI, an African
American independent appraiser from
Long Beach, Calif., and a mem ber of
the A ppraisal Institu te’s M inority
Relations Com m ittee.
“ Appraising is a profession that
is often overlooked by m inorities,”
Lee said. “W hen I started my firm in
1983, there were very few African
Americans who w ere designated ap
praisers. Today, as m inorities are
becoming more active players in the
real estate m arket, interest in apprais
ing as a career is grow ing.”
C alvin Thom as, Jr., M AI, an
possible reason why a person
can lose title to their home?
New Loan Program
Targets Women- and
■Owned
Businesses
c o u n tie s o r m e tro p o lita n a re a s --
in C la c k a m a s, M u ltn o m a h and
W ash in g to n co u n tie s, th a t’s about
$ 4 6 ,8 0 0 - and can borrow up to
$ 2 0 3 ,0 0 0 fo r ho m es o r, on a ca se -
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Dad’s
sional development, I believe you have
to strive to be your b e st W hen I
became designated by the institute I
achieved that goal.”
To learn more about its program s
and designations, write Appraisal
Institute, 875 N. Michigan Ave., Suite
2400, Chicago, IL 60611-1980, or
call (312) 335-4100.
HOME
LOANS
by-case b asis, condom inium s. The
fix e d -in te re s t ra te fo r the 97%
L T V loan is ju s t 0.25 b a sis p o in ts
h ig h e r than the c u rre n t m a rk e t
ra te .
The lice Company, Inc.
licensed or certified. Both Hill and
Thomas have received their educa
tion through the A ppraisal Institute, a
leading national organization of real
estate appraisers. “The truly profes
sional appraiser is ethical, com pe
tent, and perform s appraisals in ac
cordance with strict standards,” Hill
said. “To reach the peak o f profes
OR
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Now you can apply for a mortgage at any ot over 4(10 branches ol
Open Mon. - Fri. 9:00om to 5:00pm
U.S. Bank or its affiliated banks. And if that’s not close enough, just
Saturday 10:00am to 2:00pm
call the U.S. M ORTGAGE LINE at 1 (800)392-2412. A qualified
Sunday dosed
loan officer can take your application right over
the phone. So stop by, or give us a call. After all,
hearing oils
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282-5111
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