To protect home, write up a will

Q: My villa is about half paid off. My cousin is my next of kin and should get my home and bank account. What happens to my home when I die? — James

A: If you want your cousin to get your home when you die, you should draw up a will that leaves it to him. Your will should be properly drafted, signed, witnessed, and notarized so that you do not leave a problem for your cousin instead of your villa. If you are unsure how to do this, you should consult an experienced professional for your options.

After you die, your cousin will need to go through the probate process with the assistance of an attorney. Once complete, your cousin will be the new owner of the villa.

Most mortgages contain language requiring any new owner to pay off the loan immediately, including when the new owner gets the home because of the death of a relative.

In my experience, most lenders will not force this as long as the payments are made on time, along with all of the other requirements, such as insurance and tax payments being handled. However, your lender could “call” the loan at any time, so your cousin should look to refinance the property in a loan in his name, especially while interest rates are still favorable.

Your cousin can also decide to sell your villa. As the new owner, he has all of the choices available to any property owner. He would list the property with an agent and proceed like any other sale.

Planning for your eventual demise can be a disturbing task, but make things much easier for your loved ones when they are dealing with your loss.

FORECLOSURES CONTINUE TO FALL: Home foreclosure rates fell significantly across the country in the first half of 2019.

The number of homes facing foreclosure across the nation fell 18% in the first six months of 2019 compared with the same period last year, according to a survey by Attom Data Solutions.

“Our midyear 2019 foreclosure activity helps to show an overall view on how foreclosure activity is trending downward,” Todd Teta, chief product officer at Attom Data Solutions, said in the report. “Of course, you still have pockets across the nation where foreclosure activity is seeing some flare-ups.

“Looking at the largest markets across the nation with the greatest annual increase in foreclosure starts, four out of the five markets were in Florida.”

Home foreclosure rates have been falling for several years as home prices around the country have risen.

Nationwide home foreclosures are down 82% from where they were in the Great Recession.

Higher home values have allowed many owners to refinance or sell their properties when they are threatened with foreclosure.

Some U.S. metro markets still saw increases in foreclosure filings in the first half of 2019. Foreclosure filings were higher than a year ago in Buffalo, N.Y. (up 33%); Orlando (up 32%); Jacksonville (up 18%); Miami (up 7%) and Tampa St. Petersburg (up 5%).