Immigration status and the title of your home in the U.S.

If you have lost your legal status and are unsure what to do with your home, read this article.

One of the recurring questions I receive from my immigrant clients is related to the title of their home. Due to the elimination of protections like TPS, which provided legality to a significant group of Hispanic immigrants, the need arises to address this topic since many people who have already lost or are about to lose their status (or work permit) purchased homes, taking advantage of a series of financial programs and benefits available in the market. Now they wonder what they should do to protect their investment.

Although I am not an immigration specialist nor do I have a law degree, I dare to give my opinion from my field, which is real estate. I believe that as long as you pay your loan on time and remain on the property title, you should not have any issues—your investment is secure. For example, in the DMV area, there is a lot of foreign investment activity; people buy homes from China or even South America, and these investors do not have Social Security numbers and are foreign nationals. A foreigner can own a home here in the United States without any problem and can buy and sell. The difference between someone with a Social Security number and someone without one is, basically, the amount of taxes they have to pay and the tax benefits they can access. However, if you have a tax ID, report the home on your annual taxes, and live in the home for at least two of the last five years (which is currently how the law operates), you should not have any issues (please consult your accountant about the requirements to be exempt from capital gains taxes when selling your home).

Please, do not dispose of your homes without consulting a specialist. If you are afraid and would like to leave a power of attorney for someone you trust to represent you in a possible transaction, it is very easy to do. However, be aware that it must be someone you trust deeply because you will be giving them the authority to sign on any transaction related to your property. If you do not have someone to grant a power of attorney to, you can carry out procedures through the consular section of the United States in the country where you are since you can find a notary there to validate your signature.

Another recommendation I would like to make is not to place minors on the home title. Many of us think this is the solution since our children were born here, but this creates another legal problem because the child will not be able to enter into a purchase and sale contract without a judge’s authorization, as you must be of legal age to enter into a legal contract, and you do not want to have to go to court every time you want to handle some transaction with the house.

Also, please, do not abandon your homes; that is the worst thing you can do. Doing nothing in a risky situation is always the worst and most costly option. Rest assured that the bank that lent you the money will use all available legal tools to recover as much money as possible.

And if you have specific questions about how to proceed with your home in Virginia, Maryland, Washington, D.C., or West Virginia, contact my office—we are ready to lend a hand.