Ask a Lawyer, David L. Leon, Attorney, Dallas, Texas (214) 696-0021 » real estate

What is a life estate?

David Leon — Sat, 04 Jul 2009 20:49:50 +0000

A life estate is the right to occupy or use a specified parcel of land for the period of a person’s life.

For example:

John owns a farm. John grants a life estate in the farm to Juan. This means that Juan can use or occupy the farm for the rest of Juan’s life. Upon Juan’s death, the property will either revert back to John, or will be passed to a “remainderman” (depending on how John set up the life estate.)

04/07/2009 -- What is a ladybird deed? (0)
04/07/2009 -- How is a life estate set up? (0)
04/07/2009 -- What is a remainderman? (0)
20/02/2009 -- How do you dispose of a deceased person’s property if there was no will? (0)
09/08/2009 -- How does one qualify to be an administrator or executor of an estate? (0)
28/06/2009 -- What is exempt personal property? (0)
27/06/2009 -- What is a ‘liar loan’? (0)
07/03/2009 -- What happens to a mortgage when the borrower dies? Can the bank still foreclose? (0)
06/03/2009 -- How do I revoke a will in Texas? (0)
24/08/2008 -- In re Estate of Wilson — Lost Will (0)

What is a ‘liar loan’?

David Leon — Sat, 27 Jun 2009 21:03:23 +0000

A ‘liar loan’ is a nickname for a ’stated income’ loan. These loans were popular from 2000-2007. They were also called ‘no-doc’ and ‘non-verfied’ or ’streamlined’ loans. Basically, with these loans, a bank or mortgage company would simply ask a borrower what his or her income was, and offer loan products based on the person’s statement of income. The banks usually did not verify the person’s ’stated’ income. In some cases, people were overstating their income to qualify for houses they couldn’t afford. The typical hope was that the person could use a short term ARM loan or teaser loan to keep the house (and mortgage) afloat for a year or so, and then sell the house for a profit due to the rising house values. Once home values stopped rising, people’s ARMs adjusted upward, or the teaser rates ended, and the people wound up with homes they couldn’t afford. The practice of overstating income on a ‘liar loan’ is a criminal offense, per Texas Penal Code Sec. 32.32.

13/07/2009 -- FBI releases 2008 Mortgage Fraud statistics (0)
29/06/2009 -- What are the penalties for making false statement on a mortgage application? (0)
27/06/2009 -- I verified employment for a friend who doesn’t work for me, so he could buy his house. Should I be worried? (0)
27/06/2009 -- What is a teaser rate loan? (0)
21/06/2009 -- I want to buy a house, but have bad credit. Someone told me that I could buy a house in someone else’s name. Is this possible? (0)
01/01/2010 -- When can a judgment creditor take my home? (0)
25/12/2009 -- I’ve been charged with hindering a secured creditor? What is the punishment for hindering a secured creditor? (0)
25/12/2009 -- What is hindering a secured creditor? (0)
25/12/2009 -- I’ve been charged with providing a false statement to obtain credit. What exactly is this and what can they do? (0)
25/12/2009 -- I am a co-signor on a real estate note. The primary borrower has abandoned the property. Can the bank come after me? (0)

How do you dispose of a deceased person’s property if there was no will?

David Leon — Sat, 21 Feb 2009 00:40:42 +0000

There are several ways to dispose of a deceased person’s property in Texas. Assuming the person died intestate (without a will), the Texas laws of decent and distribution would control the disposition. The types of procedures necessary to document the transfer of assets would depend on the status of the estate.

09/08/2009 -- How does one qualify to be an administrator or executor of an estate? (0)
04/07/2009 -- What is a life estate? (0)
06/03/2009 -- How do I revoke a will in Texas? (0)
08/12/2007 -- I executed a medical power of attorney. Can someone override my decisions? (1)
08/12/2007 -- Why are people telling me to avoid probate? (0)
09/08/2009 -- How is it decided who will administer an estate? (0)
09/08/2009 -- Someone I know died having written a will. I know who has the will, but s/he refuses to file it for probate. (0)
04/07/2009 -- What is a ladybird deed? (0)
04/07/2009 -- How is a life estate set up? (0)
04/07/2009 -- What is a remainderman? (0)

I sold my house to a company for a low price, and they agreed to lease it back to me. Can I get my house back?

David Leon — Sun, 15 Feb 2009 21:15:27 +0000

Possibly. Texas Property Code provides that the taking of a deed under these circumstances may be considered a deceptive trade practice. Accordingly, the deed may be void and no lien would attach to the homestead property as a result of the purported sale.

15/02/2009 -- A company offered to buy my house at a discount and then rent it back to me. (0)
27/06/2009 -- What is a ‘liar loan’? (0)
25/05/2009 -- I want to sell a used watch. Do I have to disclose that the watch is used to the customer? (0)
25/05/2009 -- I want to start a new business. In order to attract customers, can I call my business a “wholesaler” even though I sell to the public? (0)
25/12/2009 -- I’ve been charged with hindering a secured creditor? What is the punishment for hindering a secured creditor? (0)
25/12/2009 -- What is hindering a secured creditor? (0)
25/12/2009 -- Can a common law spouse be a beneficiary of a life insurance policy? (0)
25/12/2009 -- I’ve been charged with providing a false statement to obtain credit. What exactly is this and what can they do? (0)
13/07/2009 -- FBI releases 2008 Mortgage Fraud statistics (0)
05/07/2009 -- I want to force someone to pay me a debt. Can I make a letter that looks like a summons, but says it’s not in order to scare them into paying me? (0)

A company offered to buy my house at a discount and then rent it back to me.

David Leon — Sun, 15 Feb 2009 21:11:17 +0000

First, if the house is mortgaged, then the transfer of the interest in the property may violate the mortgage’s “due on sale” clause. This means that the mortgage company has the option to call the entire amount of the loan due and payable. Further, such a transaction, may be considered to be a loan, if the house was sold at less than fair market value. This means that all payments made from the seller to the buyer in excess of the sales price will considered to be interest subject to the Texas Finance Code. These cases tend to be fact specific, Contact Us if you wish to discuss.

15/02/2009 -- I sold my house to a company for a low price, and they agreed to lease it back to me. Can I get my house back? (0)
27/06/2009 -- What is a ‘liar loan’? (0)
25/05/2009 -- I want to sell a used watch. Do I have to disclose that the watch is used to the customer? (0)
25/05/2009 -- I want to start a new business. In order to attract customers, can I call my business a “wholesaler” even though I sell to the public? (0)
25/12/2009 -- I’ve been charged with hindering a secured creditor? What is the punishment for hindering a secured creditor? (0)
25/12/2009 -- What is hindering a secured creditor? (0)
25/12/2009 -- Can a common law spouse be a beneficiary of a life insurance policy? (0)
25/12/2009 -- I’ve been charged with providing a false statement to obtain credit. What exactly is this and what can they do? (0)
13/07/2009 -- FBI releases 2008 Mortgage Fraud statistics (0)
05/07/2009 -- I want to force someone to pay me a debt. Can I make a letter that looks like a summons, but says it’s not in order to scare them into paying me? (0)