Estate and mortgage
When the U.S. Secretary of Energy Samuel W. Bodman announced February 4 that President Bush"s $25 billion Fiscal Year 2009 budget request for the Department of Energy (DOE) included an increase of $1.073 billion over the FY 2008 appropriation, builders everywhere should have collectively applauded. With consumer interest in "green" rising rapidly, this request to continue investments in advancing energy-efficiency can only help, not hinder, business if builders wrap their arms around the benefits and make the necessary investments in their futures.
The Federal Housing Administration has increased its all-important benchmark qualifying ratios by two full percentage points.
Whoa, did I hit a vein or what? You wouldn"t believe the names I got called when I wrote an article a couple of weeks ago disparaging the newly crowned queen of all mortgage loans, the Payment Option ARM. I also received plenty of emails telling me that they too, think these loans have no place in this business. As a mortgage lender for over 15 years I"ve seen it all -- or at least can claim to -- and I"ll typically get an email or two from consumers after they"ve read one of my articles. But the funny thing was that they were all from other lenders, or mortgage brokers.
In the make-believe world that Hollywood builds, real estate agents are almost always broad brushed as people to regard with disdain, distrust or contempt -- or all of the above.
New record-high home prices went on the books in Silicon Valley, but home sales are down and under pressure from a mortgage supply squeeze that"s leaving entry-level buyers twisting in the wind.
Gearing up for what could be a tough year-end season, the vacation home travel industry didn"t wait for summer to end when it released tips to help property owners tune up marketing efforts to keep properties full this fall and winter.
The travel industry can take a cue from time share owners who haven"t been put off by world events.
The huge debate in Washington regarding whether or not conventional loan limits should be raised is over. Those who wanted higher limits won with passage of the new stimulus package, a big deal because higher loan limits mean that big-ticket buyers will be able to get larger loans at less cost.
You might have seen the headlines last week about an unexpected drop in housing starts, and you might have thought: Uh-oh. That"s not the direction we ought to be headed in a rebounding economy.
You"ve probably heard critics on Capitol Hill complain that too many financially-stressed home owners aren"t getting help from lenders to modify their loans, lower their rates or freeze them -- and keep them out of foreclosure.
Sellers are looking for ways to get the most for their homes and buyers, of course, are looking for the best value. The a flowing floor plan, a spacious layout, a not-so-crowded street, great curb appeal, low HOA or planned community fees, etc. are certainly big influencers for buyers. But so, too, are some of the items in your home that you might not give much consideration.
As the residential real estate market slows down on a national basis, real estate investors are asking themselves, how will this affect me?
Question: I"m a lender and have clients who are selling their home. They"re wondering if it"s standard practice for the seller to have to pay the entire brokerage fee or is this negotiable?
Green Living is a popular movement developing in the wake of growing fears about the changing of our environment.
IKEA is doing for Scandinavia and Northern England, what Home Depot is doing for America"s Gulf Coast region -- offering affordable "kit homes" off the shelf.
The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
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So you want to do your part in helping to make your environment greener. Where do you start?
Think about it.
Olathe, Kansas, one of the state"s fastest growing cities and the nation"s eighth fastest growing city -- thrives in the southern part of Johnson County.
There"s more trouble in paradise for Hawaii"s vacation homeowners.
A growing number of homeowners who used their homes like ATMs are beginning to suffer withdrawal symptoms.
Baja Mexico -- an area surrounded by water -- with flat lands and mountains, covered by sand and cactus is home to Mexicans and vacationers alike. Those that love sun, come here. A recent visit unravels fascinating details.
A new national "risk list" could help guide real estate investors -- not only those looking to scoop up distressed property through short sales or pre-foreclosure deals with lenders -- but those looking for the safest places to stash their real estate dollars.
Two similar properties, two different listing strategies and two very different outcomes.
There is no denying that fire is, and always has been, part of our natural ecology. Unfortunately, we have all seen the horrors when all of the factors necessary to support large, intense and uncontrollable fires are present. Today, as outdoor temperatures drop and people across the nation take measures to keep themselves and their loved ones warm this winter, builders should alert both current and prospective homeowners with steps to reduce the risks associated with home fires. The following provides some tips for both outside and inside the property.
If you refinanced your home recently, you"re not alone. According to Plunkett Research, approximately $1.1 trillion dollars in mortgage loans was refinanced in the United States in 2006. But did you remember to take an increased mortgage interest deduction on your tax return if you were entitled to one?
There are few things more basic to a homeowners association than the fees it takes to keep the place running. When one or more owners default in the payment of fees, the impact is felt by all. And the longer the delinquency, the deeper the cut. It is a situation that many boards dread because of having to deal with neighbors. Here are a number of ways to reduce the impact of, cure or avoid collection problems in your community:
If you"re looking for a safe haven for real estate investing, you just might want to go back to school.
Question: I"m an investor presently buying two pre-construction homes in Florida. I"m concerned about the downturn in the market. Are the sales and prices holding up, and what is the inventory of homes for sale?
As Congress heads back to Capitol Hill following its holiday break, real estate legislation is at the top of its immediate to-do list.
College town rental housing and condos have been a profitable niche for investors for years. But are you ready for a niche within a niche - fraternity house rentals?
Today"s Interest Rates from Realty Times are based on a 30 year amortization rate, with good credit and no origination fees.
More than a third of the construction project and program owners responding to the Eighth Annual CMAA/FMI Survey of Owners say they have used Building Information Modeling (BIM) on one or more projects. The rate at which BIM is being adopted in the industry is also accelerating, the survey reports. The study was conducted by FMI with the support of the Construction Management Association of America, and focused on perceptions and implementation of BIM among construction owners, including public- and private-sector owners who are members of CMAA.
The 15-year FRM this week averaged 5.79 percent with an average 0.4 point, up from last week when it averaged 5.78 percent. A year ago at this time, the 15-year FRM averaged 5.89 percent.
Some apartment renters don"t mind paying as much as $447 extra a month if they get the satisfaction they want from a sense of community.
Question: We recently read that names should not be included in the minutes. Can we legally go back over the past few years and strike the any names from the minutes which have already been approved?
Think of the holidays, and what comes to mind? If you"re like many people, you probably envision a decorated home warmed by a roaring fire; a welcome refuge on a crisp winter"s day or night.
Not all real estate investors are created equal in the eyes of the IRS, which means not all tax planning will work for everyone. The IRS classifies real estate investors into four separate categories. What works for real estate investors won"t work for dealers or developers and may or may not work for professionals. You need to know where you fit to maximize your tax savings and minimize tax issues. You may even find that you fit in more than one place!
Seattle, Washington, prices are up nearly 5 percent from this time last year -- a result of more buyers than sellers in the market at this time, report local experts.
Answer: Since the vast majority of members are disconnected from day to day HOA operations and have little first hand knowledge of the manager"s contract obligations, few have an informed basis for evaluating the manager"s effectiveness. A suggestion form might be more appropriate. List the various categories of tasks the HOA is responsible to perform like General Maintenance, Landscaping, Pool, Janitorial, Communications, Newsletters, Rules Enforcement, Financial Reporting etc. and ask for specific recommendations for improvement. Don"t be surprised if the recommendations are tied directly to a member"s critique of service quality.
Foxtons, the innovative discount broker in the New York metropolitan area, is closing down. Reports from various news outlets say the company has already laid off 90 percent of its workforce.
Here"s an interesting profit niche for rental property owners that doesn"t get a lot of media attention: Corporate housing.
So long as your creditworthiness is pristine and the property you want to buy appraises for the loan you seek, high-leverage mortgages, which some have considered among the riskiest, will continue to make easy mortgage money, well, easy.
For the longest time I have been a proponent of the idea that sellers should have a broker and buyers too should have a separate broker. Under this system, both parties have access to professional representation and both are hopefully equals in the marketplace.
One way first-time homebuyers can keep housing costs down is to get a great deal on a foreclosure. Right? Wrong, says author, real estate attorney and investor James Randel.
When 60 Minutes aired their segment, "Chipping Away at Realtors" Six Percent," the agent population was understandably incensed because it failed to acknowledge what we agents already knew: that despite the huge increase in housing prices over the last ten years with the accompanying public perception that agents are making gobs of money, the truth is quite different.
If you are a homeowner facing foreclosure, chances are pretty good that you are not thinking straight. You have no money, you can"t pay your bills, and the bank is sending you one notice after another warning you that if you fail to do something promptly, they will be forced to kick you out of your home. Unless you win the lottery, what recourse do you have?
We"ve got a bumper crop of positives this week for housing, starting with pending home sales, which jumped by 6.4 percent in August.
A builder"s warranty should be an important part of any new home purchasing decision. Whether you"re buying from a builder with a household name or one that is new to the business, what a warranty says and the ability to get warranty work completed should not be overlooked.
You can mitigate the effect of tighter mortgage underwriting standards by improving your credit report profile and, as a result, your credit score.
The IRS has just issued a new ruling that sets forth the guidelines for those taxpayers that wish to do a 1031 exchange involving a vacation home. By way of background, you can only exchange property held for investment or used in a trade or business. Up until last year there was no guidance from the IRS that said whether vacation homes were investment or personal use property, but that changed when the U.S. Tax Court disallowed a taxpayer"s exchange from one vacation home into another. The court case immediately gave rise to the question of what has to be done to qualify a vacation home for a 1031 exchange -- this ruling is the IRS attempt to answer that question.
If you"ve been wondering what you can do around the house to help cool global warming, a major utility company offers its customers a first-of-its kind payment plan as an alternative or adjunct to existing do-it-yourself options anyone can choose.
Want a quality home?
More than a month ago I wrote that the country was close to a recession, that short-term rates were beginning to approach long-term interest levels, sure evidence of a slowdown and continued low rates.
It"s time to get serious about building an emergency fund.
The Department of Housing and Urban Development gave struggling wannabee home owners a Christmas present of sorts last week, raising the limit on government-insured mortgages in 2006 to $362,790 in the nation"s most expensive housing markets. The 2005 maximum was $312,895.
The new federal bankruptcy law helps take some -- but not all -- of the guesswork out of choosing a debt counseling service -- also called a credit counseling service.
Often maligned because it makes it tougher for consumers to erase their debts, the new federal bankruptcy law also contains provisions to help make it tougher for consumers to slip into another personal financial recession.
NAR and Lowe"s will each contribute $100,000 to the REALTORS® Relief Foundation which will distribute the money to charities aiding Haitian victims. RRF directors have already approved a donation of $50,000 of that money to The Harvest of Haiti, founded by a 2007 winner of REALTOR® Magazine"s Good Neighbor Awards, Patrick Moore. Moore"s humanitarian outreach program supports orphans, delivers clean water and provides medical care in Haiti, treating close to 3,500 people a year. Lowe"s is a sponsor of the Good Neighbor Awards.
Vacation rental owners are losing customers if their property doesn"t include a "hot spot" -- or isn"t otherwise well-stocked with technology more and more travelers seek.
Own a vacation home rental?
Question: We bought our house about a year ago. Recently, we discovered a number of defects, which were not disclosed to us by the sellers. For example, we were told that the electricity had been upgraded, when it was not. We were also told that there never was a water problem in the basement, but some recent rainstorms have literally flooded the downstairs area. We have reason to believe that the sellers flat out misrepresented certain facts in the seller disclosure form which they gave us.
California home prices fell year-to-year for the first time in 10 years in September. The fall came with a record month-to-month sales slump, accompanied by double-digit home price plunges largely in the south but also in the state"s capital city.
The California Association of Realtors (CAR) says the median home price in California will decline 4 percent to $553,000 next year compared with a projected median of $576,000 this year, for the first home price decline since 1996.
The City of Toronto"s Executive Committee has unanimously approved a staff recommendation that a new land transfer tax be implemented for home buyers. The tax would double current land transfer rates, and result in another $4,200 in taxes for the average Toronto home buyer. The proposal will go before the full City Council in July.
Peter G. Miller
You may have seen the headlines last week about the Federal Reserve continuing its policy of keeping interest rates low to stimulate the economy. But you might have missed a major byproduct of that move that"s certain to have a direct impact on home real estate: Thirty-year fixed mortgage rates slipped below the five percent mark for the first time in nearly half a year, dipping to 4.9 percent.
A broker notices that an increasing number of agents are having to work part-time, due to slowing housing conditions. How does one build a full-time business on part-time help?
An older home is a wonderful thing. But alongside the charm and character that comes with age and maturity, you may also find a host of conditions not found in houses of modern construction, such as inadequate wiring, cracked foundations, clogged pipes, and deteriorating roofs.
Liens on properties have existed probably since the sale of real estate began. A lien is simply "the lender"s right to claim the borrower"s property in the event the borrower defaults," according to mtgprofessor.com. "If there is more than one lien, the claim of the lender holding the first lien will be satisfied before the claim of the lender holding the second lien, which in turn will be satisfied before the claim of a lender holding a third lien, etc."
You have to wonder: Just how terribly -- if at all -- does government regulation raise the cost of new home construction?
One of the most problematic pieces of the property-buying process these days is the financing contingency. Basically, this contingency says to the seller the buyer will buy his house contingent on the purchasers" ability to get a loan to finance it.
The arduous quest for fair housing began more than 140 years ago with the passage of the Civil Rights Act of 1866 when Congress passed the first bill aimed at providing civil rights to freed slaves and those blacks who were born on U.S. soil. However, it took 100 more years (in 1968) before laws were passed to guarantee equal treatment in the area of housing.
I hate going to the dentist. I"ve always had good teeth, only one cavity in my head, so why spend all that money (not to mention the dental insurance) on a service I"ve never really needed. As long as I brush and floss, why do I need someone with a doctor"s degree to look over my teeth, clean them, whiten them, etc.?
A story in This Old House magazine this month details the stealing of a whole house by thieves who deal in used building parts. The crime, in Lindale, Texas, took place, obviously, over several days, in broad daylight and while the hardworking thieves waved to neighbors walking by, assuming the men were just a couple of workmen doing some tasks for the owner.
Whew!
You won"t hear the housing bubble pop, but you could begin hear it give off a slow hiss.
The housing price appreciation bandwagon rolls on, according to a new federal quarterly study released last Wednesday. But the 12.5 percent average jump in the value of an existing home in the U.S. between first quarter 2004 and first quarter 2005 "raises the potential for declines in some areas later on," according to the chief economist of the Office of Federal Housing Enterprise Oversight (OFHEO), which conducts the government"s definitive housing price study quarterly.
Talk about a national housing boom.
Demand for apartment rentals jumped in the last quarter, giving real estate investors in various markets some hope that the renters market may be softening. The National Association of Home Builders released its Multifamily Market Index (MMI) last week, showing that there are no signs of the hot condo market cooling off.
A Realty Times reader from Ohio asks:
Whether you are selling or renting property tainted with lead paint, you may have a duty to make that fact known. Failing to disclose this information can result in civil or criminal liability.
If you"re selling your house, you"ve probably heard all about curb appeal. Once that first impression passes the test, the next thing that meets the eyes of potential buyers is the entryway -- so make it look good.
Q. I am a 83 years old and a widower. I lost my wonderful wife two years ago, and no longer need the large home which we occupied for more than 30 years. We raised our children there, but they all have their own homes now.
Q: I have owned a four unit apartment building for many years. I purchased it for $75,000, and it is now worth approximately $600,000. Being a landlord has been tough, but when I look at the profit I have made, I guess it has been worth it. Now, I plan to sell the property. What are my taxable consequences, and are there any ways of avoiding or deferring my tax obligations?
Q. We have just received an advertisement in the mail offering "all cash” for our house, or in the alternative to give us a monthly payment for our equity. Our house is an investment property, which is in need of a lot of repairs, and thus the offer sounds attractive. What guarantee does a seller have that he/she will get the full amount. Suppose the company goes bankrupt? How can these companies offer such benefits as without even seeing the property?
"You"ll sell your house...and rent!" insisted the headline -- one of many "predictions" included in a side bar that ran with a recent U.S. News & World Report"s cover story "2003 Outlook" (Dec. 3, 2002-Jan. 6 2003 issue).
The Internal Revenue Service has deemed the events of September 11, 2001 an "unforeseen event" that allows certain home sellers to avoid taxes on a portion of the profit when they sell their home -- even if they don"t meet owner-occupied residency requirements otherwise necessary to avoid capital gains taxes.
The word on Wall Street -- at least according to assorted seers, soothsayers and analysts -- is that now is a very good time to have cash, lots of cash,
Once escrow has closed without a hitch and you"ve handed the keys over to
If we could sell our houses under ideal conditions, our lives and those of our real estate agents would be much easier.
If you"re like most homeowners, there"s bound to come a time when you install new carpet, whether it"s part of sprucing up or trying to get the most from your property when it"s time to sell.
Question: We recently settled on a beach property. Everything went fine except at settlement the Bank inserted -- to our surprise -- a "Second Home Rider" in the mortgage document which stated that at no time could we rent the house without written consent of the lender during the 15-year term of the mortgage. Prior to going to settlement, we received a preliminary loan commitment letter which only restricted renting for one year.
Lenders are freezing, slashing, and cutting off home equity lines of credit (HELOC), but there"s a growing manual of strategies you can use to avoid or mitigate what could be financially debilitating.
Surprising as it may seem, the holidays are the best time to sell a house, some real estate agents say.
Question: My wife and I are in the middle of divorce proceedings and are now dividing up our joint assets. Instead of selling our home, she has agreed to let me keep it as long as I can refinance the mortgage to remove her name and pay her half the equity in cash.
We all have had the experience of someone important coming to the house, and whether the visitor is an in-law, old friend, or business associate you know the drill: Have the house in "show" condition.
[Note: To follow is an excerpt of a radio show interview conducted by Peter L. Mosca, host of Income Property Investment Talk dot com, with the executive team at RealSource: Michael Anderson, CCIM; founder and co-owner, Nate Hanks, CCIM; co-owner, and Blaine Walker, President and 2010 Chairman of the Realtors Commercial Alliance. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/1213009.]
You know the feeling. You walk into one of those new model homes with everything perfectly arranged and coordinated, look around, and just think, "Wow!" How can I ever make my house look like that?
Contrary to the advice of some real estate agents, it"s OK for sellers to greet potential buyers, provided they do so under the guidance of their real estate agent.
The latest federal home value appreciation numbers are out and they underline what home builders, brokers and buyers in many parts of the country already know: The U.S. economy may be slowing down, but the market values of homes -- especially in some of the highest-cost markets -- are headed in the opposite direction.
All at once it happens -- the seller accepts an offer from someone else.
The fireplace tends to be forgotten when record high temperatures are hitting many parts of the country. But, regardless of the season, buyers often find fireplaces alluring.
Today, I filled out a disclosure form as part of the process of selling my home.
One of the most challenging and interesting questions posed by consumers is, "When is the best time to sell our big house? We’ll be retiring in the next few years and want to make sure we maximize our equity in order to purchase a smaller second home and have money left over".
You"re shopping for a brokerage to list your home when your eye catches a "list for less" ad. Then you see another brokerage advertising "choose the services you need and pay what they"re worth". Are both companies fee discounters; and if so, how can you determine what each will provide?
In the vast majority of markets tracked by RealFacts, renters who didn"t lock in rents for the long term are now pinned squarely behind the eight ball with little room to maneuver.
Real estate investors are playing a key role in the housing recovery now underway, buying up bank REO property, wading into distressed neighborhoods to turn around boarded-up foreclosures into rentals.
Chris stroked his beard and shook his head, saying: "It"s not fun." He was talking about having to walk up to the door of one of his rental properties recently with an armed sheriff and serve eviction papers to one of his tenants.
The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, up from last week when it averaged 4.56 percent. A year ago at this time, the 15-year FRM averaged 5.93 percent.
Ellen had just graduated from high school and was moving out of her home. So she packed up her computer, hair dryer, stereo, TV, DVD, microwave and fan to move into her new apartment.
Q: I own a cooperative apartment, and it has increased significantly in value in the past several years. This is a leasehold cooperative, and the lease on the land will expire in year 2052. What happens to a coop when the land lease expires? Do I lose my entire investment?
Some tenant laws can be so obtuse as to be funny and make for sitcom fodder. In fact, the rush around to seize rental units from recently deceased tenants has humorously been played out on popular comedy shows such as Seinfeld, Friends and Fraser.
We all know that Penicillin comes from mold. But other than this connection, most people still do not consider mold one way other. However, experts in indoor air quality are starting to understand that there is a link between an increase in the amount of mold spores in a person"s house or workplace and the incidence in respiratory and other related ailments.
Where can you find the most sprawl? According to a new study by The Brookings Institution"s Center on Urban & Metropolitan Policy, Who sprawls most? How growth patterns differ across the U.S. , the answer is not in California or the booming sunshine states.
Cash-laden investors are getting in line to shell out millions of dollars for beach-front condos all across the Sunshine state. Except this time, instead of just one luxury unit in South Florida for million, investors picked up 51 of the units in the One Bal Harbour complex from a bankrupt developer.
For a landlord, determining how to keep tenants longer can be much like nailing jell-o to the wall. After all, apartment-renters are by nature a transient population. In many cases, that"s why they"re renting and not buying. They want flexibility, the ability to move or buy when the time is right.
Question. Our community association is brand new. The developer has just "turned over" control to the owners and I am the new Board President.
It sometimes happens that someone will rent an apartment and later take in a roommate who promises to share the monthly rent.
It"s a mystery. Your home is only a year old and the creamy-colored carpeting has taken on a dark line at the perimeter of every room and even at the base of every door.
As a landlord, you are financially dependent on your tenants. When a tenant fails to turn in their rent payment on time, you have to worry about making your own mortgage, rent and utility payments. Being put in this situation is frustrating and sometimes angering, but before you take legal action, evaluate the situation. Perhaps your tenant is going through some hard times. Don"t want to jump to conclusions, offend the tenant and then needlessly lose their tenancy. It"s important that you understand why the rent is late.
Just because the complex you"ve moved in to seems safe, doesn"t mean you shouldn"t follow extra safety precautions. The following is a list of safety do"s and don"ts to help you keep your apartment extra safe:
The nation"s apartment owners are quietly celebrating what they say are a couple of recent victories - one at the Republican convention and the other in the nation"s newspapers as the issue of "rent vs. buy" is being reopened.
A pet-loving Internet entrepreneur has launched a new Web site that he hopes will help pet owners have an easier time renting apartments by providing them a warranty against property damage. The site is Leasewithpets.com.
You couldn"t afford to pay the rent this month, but you were too scared to approach your landlord. Now you"ve come home to find a bright yellow Eviction notice taped to your front door. A million things zoom through your mind. What are you going to do? You can"t afford to make the rent payment on your own.
So you"re moving into a new apartment? The list of things you should check on before signing that lease seems never-ending. You have to worry about location, environment, convenience, cost, aesthetic appeal, etc. But wait... there"s more! One more thing to check out is what you, the tenant, are responsible for bringing to the apartment.
As a tenant in a rental community, you have some advantages over homeowners. For example, you don’t need to worry about making simple maintenance repairs. What you DO need to worry about is submitting repair requests in a timely fashion. If you wait too long, YOU could be responsible for costly repairs.
Moving is an exhausting process, from finding a new place to live to hiring
According to Diane L. Silva, an attorney at law in California, "The purpose of filing an eviction action, an "unlawful detainer," is to obtain possession of the premises. The landlord may also obtain a judgment for rent owed, court costs and attorney"s fees (sometimes). The award of rent in the action is considered to be incidental to the primary purpose--the recovery of the premises."
It"s true that crime is an equal-opportunity offender. No one is immune.
If you are moving into an apartment you may want to consider investing in insurance. Along with the first month"s rent, chances are you will be asked to pay a security deposit. This is a type of insurance for your landlord. The landlord can use this deposit to pay for any damages caused during your residency. For you, security comes in the form of renter"s insurance.
"Households confident in their positioning within the current economic environment have taken advantage of housing affordability in the GTA," said TREB President Tom Lebour. "The real estate sector has been one of the sectors making a positive contribution to economic growth in the GTA, not to mention Ontario and Canada more broadly."
You"ve just moved into your new apartment. As you look at the uniform white
Many renters are moving into their own apartments for the first time, either through graduation from college, a recent divorce, new job or job transfer. Spending a lot of time alone can compound feelings of
A new program from the U.S. Department of