Estate and mortgage
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.
There"s nearly a 35 percent chance home prices in major metros will be lower in two years than they are now. Some areas, however, especially those in the West, Southwest and South face a far greater risk for tumbling home prices.
Year-over-year home price appreciation was up nearly 5.9 percent at the end of last year nationwide, but that"s the lowest level since 2003, according to a lagging indicator that doesn"t accurately mirror today"s real estate market.
Whew.
Silicon Valley"s housing market is rearing its volatile head again.
The 15-year FRM this week averaged 5.25 percent with an average 0.4 point, up from last week when it averaged 5.15 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent.
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.
An influx of displaced Gulf Coast residents, as well as those setting up shop to provide rescue, relief and rebuilding efforts after Hurricane Katrina -- along with the obligatory group of speculators circling for real estate carrion -- may be creating a small Baton Rouge housing bubble that"s as fragile as New Orlean"s century-old levee system.
The travel industry can take a cue from time share owners who haven"t been put off by world events.
Despite all of the hassle moving represents, when the anxiety is gone and the dust has cleared, most of us have to admit that it"s a liberating experience. It forces us to rid ourselves of the clutter accumulated in the house we"re leaving. Whether of not you buy new furniture for your new residence, the motions of packing up and heading for different surroundings is a positive experience for most movers. It"s an opportunity to start over.
The national condo market has a problem -- too much inventory. That from the National Association of Home Builder’s top economist, David Seiders. A report released last week, shows that builder confidence eroded in third quarter of 2007 in the Multifamily Condo Market Index. Current conditions in the condo market have hit its lowest level since the index was created five years ago, according to NAHB.
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.
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.
In a growing number of areas in the tiny, historic town of Aspen, CO, it feels a lot like an empty movie set. The lights are on, but in many cases, well, nobody"s home.
Here"s a quick quiz that should really hit home.
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.
Price of houses and rents in the San Antonio, Texas, area continue to move upward even while sales volume has pulled back in the in the region.
Question: We are about to buy our first home from a particular builder. All homes in the community (92 to be built) vary in price from $960,000 to $1.3 million. So far about 35 have been sold and the builder is offering options at half price.
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.
Waxhaw, North Carolina, a town with an historic past, has seen experienced significant growth in
It"s getting tough for tourists to find homey vacation rentals on several Hawaiian islands -- and owners who operate the rentals say they are getting a raw deal.
Builder confidence in the market for new single family homes remained unchanged for a third consecutive month in December, according to a recent report by the National Association of Home Builders.
St. Petersburg, Florida, has seen inventory levels go up, and then up again, as market time continues to increase.
HUD presents itself as the borrower"s friend, your buddy when it comes time to get a mortgage. There"s considerable truth to this claim, just look at FHA mortgages in general. While much of the mortgage marketplace is melting down, the latest numbers from HUD show that the FHA program is likely to double in size this year as borrowers seek safe and sane financing.
Your state-of-the-art appliances with all the bells and whistles can easily blow circuit boards during storms that feature power outages and surges when power grids attempt to come online.
You have less time than you think to cash in on the federal home buyer tax credit.
There"s some good news on the home insurance front.
On a cold winter day, there"s nothing quite like snuggling by a cozy, wood-burning fireplace -- right? It"s comforting and when you go to resell your home it can add value depending on how your particular fireplace is set up.
The IRS wants to help you. Really. Well, maybe not you, yourself, exactly; but anyone who knows or thinks they may be facing foreclosure. And that is a fair amount of people.
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.
Things get crazy around the holidays.
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.
For months, Sheila Bair, head of the Federal Deposit Insurance Corporation, has been saying that there"s an instant solution to the mortgage meltdown that can prevent massive numbers of foreclosures. Not a perfect solution, but a solution.
Under new rules adopted by the Federal Reserve Board, beginning July 30, 2009, mortgage lending will be subject to expanded disclosure requirements. This may well be a good thing. However, until everyone gets used to it, it also may cause occasional delays in closings. First, some background.
The last time this rickety life boat set sail to bail out home owners, crashing waves of failed tech companies had left home owners submerged in a sea of mortgage debt and those flimsy unemployment paychecks just couldn"t keep them afloat.
It"s not been a pretty picture in the California real estate market. Prices are dropping, appreciation is stalled, and homeowners whose mortgages are adjusting to higher interest rates are worried that they can"t keep up.
Here"s an interesting profit niche for rental property owners that doesn"t get a lot of media attention: Corporate housing.
In today"s competitive markets, your sellers and buyers need your superb negotiating skills. NAR found consumers rated negotiation skills one of the top 5 reasons to choose an agent. Here are my top 10 strategies for success with your negotiations:
Some second mortgages may be joining the condemned ranks of subprime and nontraditional first mortgages in the pool of dead loans walking.
Radon gas can be a very big problem. It is a colorless, odorless and tasteless gas that seeps from the soil into homes through cracks and foundations.
Question: My husband and I own property on the West Coast with our daughter. The property is jointly owned by all of us, with rights of survivorship. Recently, we learned that our daughter obtained a home equity loan -- without our permission or our signatures. We have been unable to obtain copies of the signed documents from either our daughter or the bank.
The VOW debate is back. Like a vampire at daybreak, this is a dispute which should have been finished long ago. Rather than handing out wooden stakes, the federal government is instead continuing a potent consumer nightmare by raising the wrong issue for the wrong reasons.
In a slow real estate market, sellers, potential buyers and real estate agents begin to think about creative financing. Last week, we explored installment sales. Another approach is known as a "wrap-around" (wrap) mortgage.
Just about every residential rental or lease agreement contains a late charge provision. From time to time questions arise as to what is fair or reasonable in that regard. Can a late payment fee be too high? Are there legal limits or guidelines?
Capitol Hill housing and mortgage lobbyists were buzzing last week about an aggressive new legislative proposal that could put tens of thousands of financially-stressed home owners into loan modifications, even if their lenders and loan servicers had to be dragged kicking and yelling to the negotiating table.
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.
Before investing the couple of hours a month building your own marketplace analysis, check to see if your local board of Realtors or MLS compiles market trend reports. I have found that most do something on this order but are not as comprehensive in price ranges. They do mainly geography-based reports for all price points. You need price segmentation.
At the start of every year, and with the regularity of celebrations in Times Square, new conforming loan limits go into effect.
In another sign of housing market malaise, the rate of homeownership has slipped to its lowest level since 2003.
Consumer Reports is advising consumers to recession-proof their financial future by taking steps to shield four areas of financial life that are vulnerable to a shrinking economy.
U.S. and world stock markets have plummeted on fears that the U.S. economy is in recession. But is that the worst thing that could happen? When prices recede, that opens opportunity to buyers, making the outlook for stocks and housing suddenly rosier.
The $160,000 price tag (plus land and site preparation costs) belies the architectural flavors of Joseph Eichler and Frank Lloyd Wright found in this low-slung, sleek new two-bedroom home.
The wheels of government do, indeed, grind slowly. But never fear, the Internal Revenue Service finally came through in late February with guidance on how taxpayers can comply with the Energy Policy Act of 2005, which was signed into law last August and took effect Jan. 1.
If you are buying or selling a home in Silicon Valley, now is the time, perhaps more than ever, to be sure you hire someone who has his or her finger on the pulse of a specific micro-market.
As the winter grinds on, some vacation property owners begin to wish they were snowed under -- by requests for accommodations.
Sustainability is here to stay, and in the commercial investment and operations business if you are not ‘green’ you most likely will not survive, nor thrive in 2010 and beyond. At Beacon Capital Partners, LLC and Jones Lang LaSalle the future is so bright the companies are wearing shades. The duo recently announced the world’s first Platinum LEED Certified multi-tenant building under the LEED for Existing Building: Operations & Maintenance (O&M) category at 550 West Washington Street in Chicago. The 10-year old asset owned by an affiliate of Beacon makes history as the first multi-tenant building to reach Platinum status.
Americans were more likely to pull up roots in the Northeast and across the Rust Belt and put down stakes in the West and Southwest last year, according to a migration study by the nation"s largest mover.
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.
You"ve probably already been drilled on the three most important aspects of a vacation home investment -- "location, location, location" -- but once you"ve chosen a hopefully lucrative location, the "what" becomes just as important as the "where."
Before you join the gold rush to buy investment properties in the burgeoning second home market, take off your rose-colored glasses and proceed with caution.
As the resale housing market goes, so does the renovation industry. For most of the last decade, existing homes sold at record levels. Since people tend to renovate their homes within the first three years of moving in, that meant residential renovation spending also set new records.
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.
Subprime loans can be risky mortgages in the wrong hands, but you can learn to live with them.
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."
Surviving a blackout is a lot like surviving a disaster.
Renters who signed contracts in the third quarter may have made out better than those who moved in earlier this year.
Real estate agents continue to get the job done even in the softer housing market, according to buyers and sellers who work with them.
If you"re what"s known as an "opportunity investor" in real estate, looks like your prime time may be now ... or very soon!
If your house has been on the market for quite a while (3 to 6 months), you may have already dropped your price and now you"re waiting for the buyers to rush in and make wonderful offers on this now-priced right property. And then it happens.
You don"t have to be a star, baby, to be in Beth Ann Shepherd"s show (Apologies to Marilyn McCoo, the Fifth Dimension and those too young to remember.).
Across the country the real estate market is slowing and the news media is reporting on the decline in sales, housing prices, and appreciation. Quite often this creates fear and a holding back by buyers as they wait to see just how low prices will go. One TV news station in Sacramento reported that desperate sellers are turning to ancient spiritual/religious rituals to help sell their homes, such as burying a statue of Saint Joseph in the backyard.
In nation of 300 million, there"s at least one sharp-eyed person who can
I wrote about Value Range Marketing a couple of weeks ago and then promptly received numerous emails from readers wanting more information on the concept. So in this column, readers" questions are answered in order to provide you with more information from agents who use VRM, so you can determine if it"ll work to sell your home.
Winter has arrived in the Middle Atlantic much earlier than we wanted it, and the slick sidewalks and front steps that remain in evidence more than reasonable time after the last snowfall have reminded me that colder weather puts an added burden on the listing agent.
WASHINGTON -- Even the National Association of Home Builders now concedes the housing market may be full of little tiny bubbles. And it"s isn"t champagne any longer.
When does a house outlive its use and is better torn down than repaired? This question is creating controversy across the country where a shortage in the housing pool has forced this type of infill development.
Commercial and investment property owners who are facing problems refinancing mortgages because of credit market conditions and declining lease revenues may have just gotten some important help from the IRS.
Who says the housing boom is losing steam? The latest federal housing price appreciation study, released last Thursday, documents the reverse: The boom is stronger than ever, and appears to be spreading to areas that haven"t seen double-digit price inflation in recent years.
A new national research study confirms what many Realtors know only too well: "Preapproval" and "prequalification" letters presented by would-be buyers of homes often are faulty and cause problems later in the transaction.
It has been a most-interesting few weeks in one of the nation"s hottest real estate markets, the area just outside my front door.
Wall Street’s economic soothsayers and sages may still be looking for home prices to sag, but out in the real world—metropolitan real estate markets in most parts of the country—the reverse scenario is underway.
Procrastinating home sellers who don"t list their home soon after getting wind of record-level sales, multiple offers, and high bids that define a hot seller"s market, could be left twisting in that very same wind.
With tax time creeping up just next month, it"s time to dust off your receipts and tax forms. If you sold your house, moved due to a job or incurred major damage from a natural or man-made disaster in 2003, you"ll want to know how your taxes will be affected.
While the last three months of the year are traditionally slow real estate months and a challenge for sellers, 2003 proved to buck the trend in many regions of the country, which means a sellers" market could spill into the new year.
If you"re getting ready to sell, then ensuring you have curb appeal, clutter-free rooms, and the look of a model home is important. But it"s also vital to play house doctor and cure those ailments that have been lingering -- drafty windows, stale odors, cold floors, and the like.
You"ve heard all about the hot real estate market that"s been sweeping the country the past couple years. Selling your house, you assumed, would be
Although the housing recovery continues to roll in most parts of the U.S., there were fresh signs last week about the bumps ahead.
Q: I am the single owner of a house I inherited in 1995. I have never lived in this house and have rented it two separate times. Tenants have now moved out and I would like to know whether or not to continue renting or should I sell now that the market value is high. What about capital gains, etc? I realize that renting at this time would make more profit than selling and putting the money in the bank at such low interest rates. However, I think selling now rather than waiting and having the cost of the sale of the house go down in a few years is a better choice. What"s your advice?
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?
Real Estate is a very local kind of business. Local laws and customs dictate how things are done. I am going to discuss seller disclosure issues, but only in a general sense. What must be done in your community depends on state law, and perhaps local practice and custom. Your lawyer will have to provide you with specific answers.
Late last year, when the Internal Revenue Service published guidance about capital gains tax exclusions on the sale of your home, giving millions of home sellers an early Christmas present, it also sent a little package of cheer to home-based business owners who sell their home.
If people stop dead in their tracks to admire your residence, your house has curb appeal.
With the median size of new homes on the rise, you might worry about trying to sell your home if it"s on the small side.
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.
Here"s a news release headline you don"t want to see:
Question: I submitted an offer to purchase a home for $231,000, although the seller was only asking $229,000. My broker advised me that the market was "hot," and that multiple contracts were expected. The broker also suggested that I include an escalation clause, up to a maximum of $240,000 -- with incremental increases of $2,000. I was advised that the seller"s real estate agent would provide me with a copy of any other offers to verify the need to increase my offering price.
You"ve been offered a job transfer, and it"s simply too tempting to resist. But there"s a catch: It"s a temporary assignment, and depending upon your performance and the various other conditions within the company, there"s a remote possibility it could turn into something permanent. You have no guarantees, however. And you love your current home. Should you rent it out, based on the assumption that you"ll be returning in the future? Or would it be more advantageous financially to sell your home, instead? Assuming you decided to rent out your home, how would you do it?
Question: We are renting our home to a nice young couple who are engaged to be married. The rent for the young woman is paid by a bank which is serving as trustee for an estate. The bank has advised us that if the other tenant should move out, their client will only be liable for half of the rent.
Like calling a nuclear-tipped missile the Peacemaker, real estate market buzz words "stabilizing market," "returning to normal" and "market softening" may send the wrong signal to consumers.
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.
California"s housing crisis has become an emergency of multi-alarm proportions that has spawned a growing class of renters for whom home ownership may always remain a dream.
Workers earning the federal minimum wage must work the equivalent of nearly three full-time jobs to afford the typical two-bedroom apartment, according to new research released Monday in Washington.
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?
Question: I am looking to purchase a condominium unit in a fairly large complex. The seller has given me a large package to review, and I only have a few days in which to wade through this material and decide whether or not to purchase.
What is a turn-around apartment? One that you spin on the tip of your finger? Nope, usually a turn-around property is one that"s distressed -- but has potential. Can you fix all properties and make them better? I don"t think so, but this article will give you an idea of how to do it successfully.
The profile of the typical renter has changed dramatically throughout the last decade. The number of renters who are professionals aged 30 and above keeps growing. Baby boomers, it seems, like their apartments.
Before moving to a townhouse right around the corner from my apartment, a friend warned me, "Those short-distance moves are the most difficult."
Suppose you own a 40-unit apartment complex. You notice that the units are not renting very fast, your vacancy rate is high and for some reason your collections are very low. As you"re auditing your end-of-the-year books you discover that your on-site manager has been pocketing the laundry room machine income. As you dig further you find that rent money is missing. You decide to fire the manager.
You"re renting an apartment - a great apartment, and then your company asks you to do a six-month assignment in another state. It"s a good opportunity
The apartment is beautiful... it has a great view of the pond surrounded by weeping willows. The complex is new, the location seems great... but is it safe? The landlord is not going to tell you about the high neighborhood crime rate if he wants you as a tenant. In order to guarantee your safety, you"ll need to do some research on the area.
In hot renters" markets throughout the country, people often feel pressured to sign quickly for fear they"ll lose out on the apartment they want. For that reason, we sometimes fail to ask the questions that could determine whether your residency will be pleasant or a series of stressful contentions over the terms of your lease. Unfortunately, once you"ve signed that lease, it"s binding. So avoid giving in to pressure tactics when you"re considering an apartment. While the leasing agent or landlord is busy asking you questions, you have the right to ask him or her a few questions of your own. And keep in mind that the landlord/leasing agent"s verbal responses to these questions mean nothing unless those terms are specifically written into your lease -- or added and intialed both by you and the landlord/leasing agent.
Joe Landlord just received a phone call about a busted water pipe in apartment 3c, an overflowing washing machine in 2d and a broken window in 4a, so Suzy Tenant’s complaint about the “noisy neighbors” will remain low on his list of things to attend to. Perhaps, at a better time, Joe Landlord will be happy to help Suzy with her noisy neighbor dilemma.
Your heart starts pounding... breathing becomes labored, and your head starts to ache. You wipe the sweat from your forehead and try to gather your thoughts. Have you just had a heart attack? Not at all. This is your body"s reaction to excessive noise.
The appearance of the holidays usually means the disappearance of money, and sometimes, even the most frugal and responsible renters are faced with the inability to pay rent. If this happens to you, don"t panic. By handling yourself professionally and following certain guidelines, you should be able to convince your landlord to defer your payment due date.
If you"re an apartment dweller, seeing strangers is an every day occurrence. When you share hallways, elevators and stairwells with fifty other occupants, seeing someone unfamiliar might not even phase you. Unfortunately, that unfamiliar face could be planning to break in to your home as soon as you give them the opportunity. In order to feel more secure in your apartment, you might want to invest in an alarm.
Apartment industry executives are cheering the news that, despite increasing
While examining a potential apartment, it"s important to listen while you look. You don"t want to discover your noisy environment after you"ve already signed the lease. Follow this advice to make sure the apartment is the right one.
When you live in an apartment, you have to expect thin walls. You might get used to the band next door that likes practicing until midnight on Fridays. You could probably even learn to live with the Tejano bass from your downstairs neighbors. But what if the sounds of shattered glass, crying, harsh words, and body punches filter through your vents? Abuse is an uncomfortable issue, but learning to live with it is not an option.
"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."
The commercial and residential building trend for today is more living area