Investment property
If you"re on the hunt for an apartment right now, you"ve probably noticed that you"re in good company. Each weekend, hordes of hunters arrive at the newest and most luxurious complexes. The apartment business is growing increasingly competitive in many markets, and leasing companies are offering tempting specials to sweeten the deal and lure prospective renters away from competitors. Working in this kind of "every man for himself" climate, however, requires a little prior knowledge before you begin your search. It really is a jungle out there.
Richard Rusdorf, author of "The Landlord"s Handbook: A Complete Guide to Managing Small Residential Properties," managed a 400-plus-unit apartment building in Chicago 20 years ago. The past president of the Chicago chapter of the Institute of Real Estate Management, he has served as a real estate broker, consultant, writer, architectural photographer, and certified property manager. With such a diverse background in real estate, Rusdorf has plenty of perspective on what peeves both landlords and tenants. Tenants" number-one point of contention, he says, is "responsiveness to complaints -- even if there"s nothing that can be done about the problem." Residential rental properties are a literal obstacle course of sticky situations. These fairly tight quarters are home to many people with specific concerns that they expect their landlord to address (and pay for) yesterday. Landlords, whether at fault or not when tenant complaints arise, find themselves between a rock and a hard place on such issues as security, water quality, the neighborhood, neighbors, their guests, and noise.
[Note: Earlier this year the management team at RealSource, a Salt Lake City-based commercial brokerage that for eighteen years has provided the circumstances to optimize and safeguard real estate investments for its clients, formed RealSource Development Company (RSDC) with the intention of buying land and constructing various types of income properties, including apartments, retail and office. I sat down with RSDC Vice President John Monk about working with builders and developers and whether this business model has been a success.]
A recently released survey by Green Builder Media and Imre Communications indicates that homebuyers are willing to pay a premium for green homes -- homes that are environmentally safe and, in many cases, more valuable than those traditionally-built.
You would expect a home remodeling website"s survey to be a self-serving survey if it reports home remodeling is on the ups and custom home purchases are on the outs.
A series of focus groups across Canada has told builders what they don"t want to know -- their public image could use some work.
We"ve always heard that one of the best ways to prevent residential break and enter crimes is to have "nosy neighbours" who will notice if something unusual is going on at your home. Try telling that to my neighbour. A few years ago, he asked me to keep an eye on his house when he went away for vacation. I did, and early one morning I noticed with a sinking feeling that the back door was hanging wide open. Someone had smashed through the front door in the middle of the night, ransacked the home, and escaped out the back. I never heard a thing.
Although there has been an increase in movement back to some of the major cities, sales of existing homes so far in 2004 still show that the majority of buyers remain wedded to the suburbs, as they have since the end of World War II.
Whenever I travel to England and Ireland, I"m always fascinated by the names people give to their houses, and even more by the fact that they name them at all.
A sentiment on the wall of a friend"s kitchen sums up the importance of this part of the house to the typical consumer:
Outdoor amenities like patios, decks, lighting and trees are important to new-home buyers. So are kitchen islands and walk-in pantries, according to the National Association of Home Builders" most recent new home-buyer preference survey released last month.
What"s the fastest growing niche in real estate, one that"s seen an increase in residential sales volume of 48 percent in the past 60 months?
California"s home builders will produce more houses this year and next than they have at any time in nearly 15 years. But it still won"t be enough to make up for a shortage of new construction that has persisted since the 1990s or the demand that"s coming in the future.
Residential construction is undergoing an industry-driven revolution in how houses are built thanks to a new trend known as “green building,” according to the National Association of Home Builders.
If you thought you read the last "Top Towns" list, think again.
In spite of the ongoing economic downturn, homebuilding in the U.S. has weathered the storm nicely, remaining relatively unscathed through it all. In fact, it may very well be homebuilding that has been the saving grace and crucial source of strength in the U.S. economy. So it’s no surprise that the recent International Builders Show in Las Vegas was even bigger than last year’s show in Atlanta.
Armed for the first time with data showing the superior performance of construction
Q: My wife and I are in the process of planning our last home. I am interested in incorporating the latest “technologies” (i.e.: on-demand hot water, home entertainment wiring, computer hookups/wiring throughout the home, intercom, in-house vacuum, etc) into the home now, rather than trying to retrofit.
The energy crises may have subsided, but home owners remain willing to pay extra for homes with renewable energy systems.
Few builders these days do not have Web sites. Many sites are increasingly sophisticated, with virtual tours and ways to let potential buyers design their dream houses with several clicks of a mouse.
There must have been plenty of people in Buffalo last month who were bent over their shovels, dreaming of a driveway or sidewalk that could magically melt away that record-breaking seven feet of snow.
Americans are searching for houses that require little or no maintenance, but as even buyers of brand-new houses can tell you, such creatures don"t exist.
Constantine Pergantis has been in the outdoor lighting business for over 15 years. He says when he got started, there were about three companies making low-voltage outdoor lighting. Today, he jokes, "I basically lost count after about 50."
Dark materials absorb more heat from the sun -- as anyone is well aware if they"ve worn a black T-shirt on a sunny day.
Thousands of home owners in Southern California are finally going to get their plumbing fixed thanks to a $41 million mediation settlement in a defective galvanized steel plumbing case.
The countdown is on. In less than a month, the U.S. International Trade Commission will make a decision that could either drastically raise or lower the cost of construction in the United States.
"It"s not easy being green," said Kermit the frog. But if you"re in the market for a new home, it may be easier than you think. Green is a color that more builders and home buyers are embracing as they find being kind to the environment has benefits for people, too.
Little did Nebraska"s pioneers know that their straw bale method of home construction would turn out to be politically correct in the year 2001.
Whether you"ve decided to build your dream house or you"re in the market for an existing home, you"re going to need to survey local builders and identify the better ones in your market. If you"re new to the world of home builders, that can be a daunting task. In many suburbs, a short drive around town reveals the extreme competitiveness of the builders" market. You"ll spot roadside signs everywhere - as many as 10 or 12 in a cluster, and each one of them claiming that a particular builder is the best in the industry.
The 2009 Construction Industry Survey recently released by Grassi & Co., CPAs, a leading national construction practice, in partnership with McGraw Hill, uncovered a need for contractors and developers to begin relying on sophisticated business planning tools and programs to grow business over time and on financial techniques to increase profitability. The survey queried construction companies in seven different information areas: organizational structure, contract types, training and technology, profitability and access to capital, financial tools, business development and future vision. "Construction contractors should key into business planning for both growth and profitability," advised Louis C. Grassi, CPA, CFE, and Managing Partner of Grassi & Co., CPAs, who has been advising construction firms for nearly thirty years.
Homebuyers staring at page after page of a builder"s design options are oftentimes hard-pressed to make heads of tails out of some of the less-than
Our fascination with the "before and after" never seems to wane. And where trappings of our very American heritage are concerned, we love to see what was once beautiful and majestic restored to its former glory, somehow appreciating it even more now than when it may have been when it was originally built.
New home buyers often prefer small builders.
Standing in the model home sales office, leaning on the padded edges of the builder"s "topo" board, you stare at the little shapes, numbers and street names as the builder"s sales consultant explains their new home neighborhood layout. You"ve chosen the floor plan that flipped your switch, and now it"s time to select a home site for it. Although you"ve driven around the community"s empty streets and half-built rows of homes, you"re having a tough time making a decision between lots # 47, 49, or 52.
Continuing declines in mortgage rates and signs of home price pick-ups dominate this week"s economic outlook for real estate.
"The future is in plastics," said a guest in the now classic movie, "The Graduate," to the film"s main character, Benjamin, during his parents" congratulatory cocktail party. The graduate blankly stared back, no doubt thinking how dull a future in plastics might be. Those who were forward-thinking enough to stay in the plastics industry, however, must have somehow imagined what the future might hold in store for the use of their products, especially in decking and fencing by the time the 21st century rolled around.
Believe it or not, the French people were not in love with their majestic Eiffel Tower when the magnificent structure was dedicated in 1889 by Gustave Eiffel. As a lofty tribute to steel, the Tower received a lukewarm reception from its French constituency. As we all know, today it is a landmark and point of pride for the people of France. Although steel framing has been around for centuries and is more commonly used in framing commercial buildings in the U.S, it is finally beginning to reach its stride in new home construction. Skyrocketing lumber prices have significantly spurred tens of
Home is a place to renew and recharge our batteries. Above all, it should be a haven for peace and reflection, giving meaning to all the craziness we endure on a daily basis. This and many other sentiments are reflected by new studies about what homebuyers want in a home, conducted by Texas A & M University"s Real Estate Center, and outlined in a release by Relocation Information Services.
Marble, limestone, slate, travertine, granite. These surfaces are everywhere
Something looks vaguely familiar. Is it the arrangement of the rooms as you
If you"re in the market for a new home, shopping for one can be a tedious,
As you may have noticed when shopping for a new home, builders strive to make
How long is a lifetime warranty? How long does "new" stay "new?" New home
Water, water, everywhere! Sounds great in the middle of the summer, but
It"s not a revelation that suburbia isn"t everyone"s idea of utopia.
Seems like it has been an "us or them" thing for as long as I can remember.
It"s not what you would call a big thing. Maybe a nagging thing; a
Just how important are the windows on that new home you are considering?
Another warning is being raised concerning the state of modern home
Forbes.com has published its report on America’s Best and Worst Cities for Families. These are metros where people have enough money for everyday living and places where families’ daily budgets take a chunk out of their incomes.
So you waited. And you"ve finally purchased that gorgeous home site, but now
Let"s face it. Your mortgage broker cousin Larry has known for months that
Job-loss mortgage insurance is available from a host of sources and policies vary in coverage, cost, benefits and requirements, so you"d better shop around.
Considering the amount of lumber that goes into the average home -- nearly 16,000 board feet and 6,000 square feet of structural panels for a typical 2,000-square-foot home -- it"s little wonder that arborists are concerned about a shortfall of trees.
The 89-year-old woman had seen her neighborhood come full circle in the 75 years since her family had moved there. Once merchants had lived in the area south of downtown, but it slowly deteriorated with crime, prostitution, and drugs, and she was embarrassed to have visitors. Then a homeowners" association won city approval to install gates to close off some of the streets, and residents now anticipate the area will again become appealing.
Question: I recently put an offer on a house and gave a $1,000 deposit. I signed all the contracts. I never received a signed copy from the owner because he was away on business. His agent overnighted him the contracts and two days later cashed my check and marked the house as "sale pending." The owner of the house is now saying he does not want to sell. Do I have a right to that house? The agent did refund my money, but I feel the owner signed the contracts and the house should be mine.
Leveraging yourself by means of putting little or nothing down on your mortgage is not a new concept, but over the past couple of years it"s morphed itself away from those who don"t have any down payment money or for those qualified for a VA loan -- to those who have down payment money but don"t want to use it.
Several months ago, I wrote a column entitled, "Women Building Women." It evolved from my belief that I had about urging women everywhere to share their financial wisdom, insight, and intuition with each other to help take financial control of their lives and their futures.
When I get a letter from those exploring a foreclosure purchase, it reiterates how many people look at foreclosure as a rags-to-riches proposition that will leave them with the golden egg-laying goose, but one that doesn"t require basic care of the goose -- food, shelter, protection from wolves, etc.
If you want to find one of the most beautiful places on earth, just head east about 650 miles from North Carolina to Bermuda, officially an overseas territory of the United Kingdom, but in reality a micro-country with it"s own way of doing business.
The appraisal can be a part of the real estate process that is both time consuming and anxiety building -- as you wait to find out what your home is worth, according to certified experts. While the emotional experience of the latter can"t be completely removed, the first part can be aided significantly.
Contrary to popular belief, the bottom line in contract negotiations is not always the bottom line. Obviously, how much you"re going to pay for or gain from the sale of a house is on the top of the spreadsheet; however, there are a certain percentage of contracts that fall apart because of the terms or non-sales price parts of the contract, rather than the financial bottom line.
Critics of Fannie Mae"s and Freddie Mac"s controversial new appraisal rules ratcheted up the pressure before the July 4 congressional recess with the introduction of bipartisan legislation that would mandate an 18-month moratorium on the “Home Valuation Code of Conduct.”
Many real estate prognosticators have been worrying about the slowing of the appreciation rates across real estate markets nationwide, scaring many buyers out of the market. The Office of Federal Housing Enterprise Oversite released its 2nd quarter figures on average housing prices this month and many market watchers jumped on the "dropping prices" bandwagon.
It"s never easy to be the messenger of not-so-good news, but it apparently has fallen upon "the media" to bear the bad tidings of the slowing market and all that it entails.
One of the most important aspects of the investment game is creating a positive cash flow from your rental properties. The basic principles apply: buy low/sell high; cover your monthly expenses with your monthly rental payments; go to the bank a happier, richer person.
There is a housing shortage that is helping pad savvy real estate investors" pockets. If you have college-age children you may be well aware that housing for students is in great demand.
A Brookings Institute report pointed out McAllen, Texas as “the only major city in the country that saw growth in employment and output during the first quarter of 2009,” as reported in The Monitor, the Rio Grande Valley’s main newspaper and online news service.
June is national homeownership month and while that may not mean much to those who already own homes, it can be a sore spot for non-homeowners who are hoping and in many cases, especially in California, struggling to save enough money to one day settle into a home they own.
The thought of quitting a job and living off of rental income properties is merely a dream for many people. But it"s exactly the lifestyle that Matthew Martinez has achieved.
[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 members of the editorial team at GlobeSt.com: John Salustri, editorial director, ALM"s Real Estate Media Group, Ian Ritter, editor of GlobeSt.com, Sule Aygoren Carranza, editor, Real Estate Forum and Danielle Douglas, editor and distressed assets investor. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/121609.]
Appraisers are cautioning consumers to be aware of the difference between online home valuation services and an eyes-on, hands-on appraisal.
Inflation is in check as the economy grows and consumers work and spend more, but the housing market is becoming less and less of a factor as it begins to slip from its post as a leading economic sector.
In 2003, the National Association of Real Estate Editors held its spring conference in San Diego. That conference included a bus trip southeast of the central core of Tijuana, Mexico, where Casas Geo, one of Mexico"s largest residential developers, was building El Dorado, a 4,500-unit condominium project.
An important new resource for Realtors and lenders becomes available today: Home buyers with "thin" credit histories or artificially-depressed Fair Isaac (FICO) credit scores can now obtain alternative credit reports and scores based on their on-time payments to landlords, utilities, cable companies and other recurring accounts not included in national credit bureau files.
Federal housing authorities want to add "first responders" to a reconstituted program aimed at getting government-owned homes into the hands of workers who are seen as the key to improving the quality of life in distressed urban communities.
In much of this country, the shoreline has a growing amount of privately owned beaches. And let"s face it, waterfront seating is always the most expensive. Maybe we gravitate towards water because we are all made of it.
Canadians ask "Is now a good time to buy?" and record numbers continue to answer "yes" as they sign on the dotted line for a new or resale home. The professional response from real estate boards, real estate professionals, governments and other real estate experts remains cautiously optimistic as 2005 enters its last marketplace for the year and projections for 2006 begin to emerge.
You"ve found the perfect property to purchase, whether it is a condo or detached house. If it falls within the guidelines of a community association make sure you educate yourself on the bylaws before buying or else you run the risk of being terribly unhappy.
It"s been a wild real estate ride for many areas in the country, some areas seeing unusually high appreciation. But that may be about to change.
New Hampshire is the nation"s most livable state, the second healthiest state, among the top five safest states and high on the list of states committed to education, so it"s no surprise the state just keeps getting better.
A newly remodeled kitchen, bathroom or even a deck can add value to your home and comfort to your lifestyle. That"s why last year"s home improvement figures hit a record high.
The year always ends with a mad rush to close home buying deals.
It"s not something you probably give much thought about if you have a newer home but if you"re in an older home its lead-based paint should be a concern.
As sure as year-end holiday decorations hit the stores before Halloween, the annual home heating fuel cost forecast will put a damper on season"s greetings.
As a CPA, I"m often contacted by clients looking for damage control on tax issues. Sometimes I"m able to help them, but other times I can"t. What frustrates me the most is that in many of these cases I could have helped, if only the client had come to me before getting into the deal. Jumping into a real estate investment without understanding the tax or accounting consequences of the deal can wind up costing you thousands, and, as far as I"m concerned, is the biggest mistake real estate investors make.
Along with energy efficient cars, appliances and other gadgets, it"s getting easier to find an energy-efficient home and save a bundle on utility cots.
A winter storm with hurricane force winds swelled the surf and blasted icy rain and snow across the Pacific Northwest late last week, causing at least three deaths before heading inland.
Wildfires are no stranger to California homeowners, but no matter where you live, it"s likely that the threat of a fire can occur. However, if you have taken precautions, there is a good chance you can prevent a fire from completely destroying your home.
Parents and others who allow kids to play in a driveway have always foolishly overlooked a safety hazard that comes with the potential for injury or death. Now larger vehicles and quieter vehicle technology exacerbate the risk.
As New Orleans and the Gulf Coast area undergo reconstruction, building codes for homes and public buildings should include "passive survivability" designs that allow them to serve as livable refuges should a Hurricane Katrina-level crisis return to the region.
In all the years I"ve been writing about real estate and home improvement, I don"t recall ever fielding as many inquiries about saving energy as I have in recent weeks.
Commercial Properties
More than 18,000 emergency room visits a year are made by Canadian children who have been injured by common household products. To an adult, a chest of drawers is a storage device, but to a child, it can become a staircase to climb – causing the whole chest to tip over. A pull string on a window blind can act like a noose around a child"s neck.
Unless you"ve taken a new job in a new location, the decision to move up may involve deciding on whether to remodel or move altogether. Homeowners nationwide will spend $192.8 billion this year to either remodel or repair their homes, according to the U.S. Census.
If there is anything "good" that has come of killer Hurricane"s Katrina and Rita, it"s that the massive storms have sent millions of home owners scurrying to determine if they have enough insurance coverage should a major catastrophe strike in their neck of the woods.
American home owners and buyers may soon need their own relief fund to help bail them out of higher costs associated with owning and buying a home.
Question: I signed a contract with a general contractor last September. The contractor was going to remodel the back end of my house, for a fixed price of $125,000. For six months, everything seems to go well, the work appeared to be of good quality and the various crews were working continuously. Then, about four months ago, things changed. The contractor no longer returned my calls (nor those of my architect), and no work has been done in my house since last May.
To keep your utility bill affordable, give the nation"s new energy policy another look and otherwise take steps now to make your home as energy efficient as possible.
In recent years, reserve planning has become a long overdue reality for many older homeowner associations. The boom and bust mentality of deferred maintenance and special assessments has finally been replaced with proper long range planning and funding. For all of them, that meant accumulation of hundreds of thousands of dollars and for some, millions.
With all the talk about real estate bubbles, rising interest rates and collapsing home prices some folks are just not listening, they"re trying to find out more.
The wildfire season is underway and it"s shaping up to be a fiery one, especially in parts of Arizona, California, Idaho, Montana, Nevada, Oregon, Utah and Washington state.
As homeowner association buildings age, the systems that deliver utilities can fail. Electrical circuits short out and pipes spring leaks. While spot repairs often keep this deterioration under control, there may come a time when a total restoration is called for. This is particularly true of old or defective plumbing. In years past, homeowner associations with failed plumbing required extensive destruction of the building to access the pipes for removal and replacement. The cost and disruption to residents was enormous. Fortunately, a new, less intrusive method is now available that actually leaves original plumbing in place.
Homeowner associations generally have extensive landscaping to maintain which includes, planting beds. Part of every planting bed should include an element of barkdust, barkchips, or barkmulch. This miracle soil amendment offers a number of benefits:
I hate to share the news with you, but your house is a liability. This month, my house has cost me more than $2,000. On the other hand, it has grown in value, at about a rate of 1.5 percent this month -- that would be roughly $2,000 as well -- but it"s still a liability. Let me explain.
We are to some extent what we throw out in that we are becoming increasingly buried and consumed by waste from our daily activities.
WASHINGTON, D.C. - Most homeowners -- 75 percent of them -- have a 20 percent or greater equity stake in their homes and that"s plenty to cover a significant drop in home prices.
The Three Little Pigs didn"t become a ham sandwich for the Big Bad Wolf because they huddled in a house built of brick and their home withstood his big bad breath.
I was in Pasadena, Calif., a few years back, waiting for my wife"s business trip to end so she, the boys and I could head to the Grand Canyon for a camping trip.
I"m married to an urban planner who, until recently, tended to work for whatever city we lived in. So in my last house, when I wanted to put a fence in the side yard of our corner lot, my husband said no. Turns out that not only would that have required a permit from the city, but I also couldn"t have put it where I wanted. Although our vast lawn rolled from doorstep to street, that first 10 or 15 feet of lush grass we tended each week technically wasn"t ours. The city could choose to build a sidewalk on it at any time -- and if I"d built that fence, or even put in any bushes or trees, I might have had to take them out.
Lose your swimming pool"s diving board, build a four-foot high barrier around the pool, install alarms, add a motorized safety cover and make sure your homeowners insurance policy -- specifically for swimming pool accidents -- has a liability coverage that is no less than $1 million.
I"ve always been wary of leaving the house for long periods, but it"s more of an issue of who"ll water the tomatoes while I"m away rather than how to stop people from breaking in.
The newest trend in laundry room remodeling reflects homeowners" demand for convenience while doing this chore, according to the Remodelors Council.
As the unofficial start of the summer season kicks off this holiday weekend, many parts of the country will begin to heat up, meaning now"s the time for an air conditioning audit and getting your unit into shape before the scorching heat sets in.
Here"s a compelling reason to consider organic gardening and landscaping at home: low-dose exposure to lawn care pesticides my cause injury to developing embryos before pregnancy is even noticed.
Hi Bill
[Note: To follow is an excerpt of an interview with several leaders of the 43,000-member Arizona Association of REALTORS and students of its prestigious Leadership Academy. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/042209.]
Beneath the gritty, unbreathable pall that hangs over Southern California, lie the ashes of at least 1,100 homes destroyed in a half-dozen fires that prompted President Bush this week to declare the region a national disaster area.
Indoor air quality is now understood to be as significant of a problem as outdoor air quality. Indeed, what good is clean air outside a home if the inside air quality is poisoning your family? It is important that you protect your home’s indoor air quality.
A couple of months ago, the zero-energy house became a reality.
Money, or rather the lack of it, is a popular topic in coffee shops and board rooms these days -- across Canada and around the world. Individuals and companies feel the pinch of these redefining economic times and many are pulling back financially. In contrast, our governments are spending at record levels. Instead of feeling crushed by the recession, seek out opportunity.
Yes, the home has a Laundry Room, but can you do laundry in it?
Q.I recently had the four corners of my land staked by a surveyor. In so doing, I noticed that my neighbor"s shed which is on a concrete slab is about 8-10 inches on my property. A hedge divides my land from theirs in the back yard, although the neighbor pulled out half of the hedge and uses the 8-10 inch strip for the shed and for planting. What is the law? I would like to keep peace with the neighbors. I did tell them that they are on my land. The indicated that they thought the hedge belonged to them but were terribly sorry after they found out it wasn"t their property. However, our neighbor still plants on the strip. We would appreciate the simplest solution of all possibilities that might be available.
The federal agency charged with maintaining stability and public confidence in the nation"s financial system can help you feel stable and confident about your home loan -- at the lowest possible cost.
Homeland Security"s threat level for terrorism has largely been in the stand-by yellow "Elevated" mode pretty much since 9/11.
Following again in the footsteps of federal regulators, state financial overseers are bringing new subprime regulations to state lenders not regulated by the feds.
With mortgage delinquencies soaring-and projected to go higher this year-a unit of the Treasury Dept. last week urged banks to redouble their efforts to intervene earlier and more imaginatively with financially troubled homeowners.
Mortgage fraud -- from bogus appraisals to consumer lies about employment and income -- is booming, up by 30 percent in the last year, according to a comprehensive new study prepared for the Mortgage Bankers Association of America using FBI and private mortgage industry data.
Too much information.
Question: I am almost at the point of making an offer on a home with a ten percent down payment. My offering price will be $360,000 and I want an 80-10-10 mortgage program to avoid private mortgage insurance. When I spoke with the loan officer, he was vague in giving me some rate quotes. I don"t want to end up ratifying a contract without knowing the specific terms of the mortgage.
Federal and state regulators say it"s one of the fastest-spreading new scams in the mortgage market: Internet-based companies that artificially raise loan applicants" FICO scores by 50 to 200 points by implanting credit accounts of consumers with outstanding payment histories into the credit files of borrowers with low scores and bad payment histories.
It"s easy to point your finger. It"s also much easier to point that finger when there"s so much damning evidence. Non-prime mortgage loans issued to borrowers are being foreclosed upon at accelerated rates. Non-prime mortgage lenders are closing their doors as fast as they can because they can"t afford to buy back the crappy loans they made.
Question: We recently went to settlement on our first home. The attorney conducting the process handed us a large pile of papers and asked us to sign them. One of them was a form which would authorize our lender to get our personal financial information from the IRS. We objected but were told that this was a lender requirement. Is this legal?
Question: We have had our house on the market for over one moth, with absolutely no nibbles. We lowered the sales price, but to no avail. A friend suggested that we consider taking back financing, but do not know if this legal or how it works. Is this something we should consider?
This is a follow-up to my last column, where I took an unsympathetic view of ARM holders who ignored the Federal Reserve"s warnings that it would be raising interest rates at a "measured" pace. The Fed began its series of rate hikes in mid-2004, when many adjustable rate mortgages were below four percent. It made no secret of its intentions to continue to raise rates. Many ARM holders had the opportunity to refinance to a fix rate below six percent in 2004 and 2005.
As interest rates rise, it"s more crucial than ever that you understand how your adjustable rate mortgage (ARM) works or you"ll be in the dark about how much your monthly mortgage payment can jump.
In a move that could affect thousands of home buyers around the country this year, the Federal Trade Commission has asked an appellate court to order mortgage insurance companies to inform consumers whenever they raise monthly premiums because of negative information contained in credit files.
A 40-year, fixed-rate mortgage with an interest rate lower than that of a 30-year mortgage?
Question: I am a first time home buyer with limited income. My mortgage lender has suggested that I should consider obtaining an interest only loan. I have heard that these kind of loans are not necessarily in the best interest of consumers. Can you explain what an interest only loan is, and why it is problematic?
True to form, federal financial regulators lived up to their warnings of impending proposed guidelines for lenders offering nontraditional mortgage products deemed too risky to a growing segment of home buyers and lenders" portfolios as well.
Two new reports say that Canadians are spending more on everything from mortgages and food to DVD players and cell phones. But while mortgage payments rose an average of seven per cent largely because of higher house prices, low interest rates and strong employment have allowed Canadians to keep up with the payments.
Will home buyers in high cost markets find it more difficult next year to sign up for mortgages that allow them to make low monthly payments through "negative amortization?"
Last month in Alberta, four people were arrested on charges relating to mortgage fraud. The Real Estate Council of Alberta says mortgage fraud is costing $275 million a year in that province, and across the country, real estate and mortgage professionals say it is a growing problem.