From The New York Times
Federal regulators have decided to revise a key disclosure form required by lenders – the good faith estimate of mortgage costs.
The change could help borrowers get a better handle on closing costs while simplifying mortgage shopping. The challenge that remains for borrowers is to protect themselves in the 14 months before the new documents come out.
HUD unveiled the new, simpler good faith estimate format in Nov 2008. HUD also established limits on certain loan charges: the processing fees collected by the loan officer from the lender, third-party fees for appraisers/services, and escrow charges for taxes and insurance.
Dec 23, 2008
Dec 18, 2008
Secure at Home When You’re Not
From The New York Times
With the holidays fast approaching, thoughts of family getaways are on the minds of many homeowners - but getaways can be less enjoyable if homeowners are worried about things being safe back home.
Protecting an empty home is a priority for many and with so much reliance these days on video surveillance cameras and alarm systems that alert the police to a break-in, sometimes it’s just as important for people to slow down between the planning and the packing and to remember what they can do themselves to secure their home the old-fashioned way.
With the holidays fast approaching, thoughts of family getaways are on the minds of many homeowners - but getaways can be less enjoyable if homeowners are worried about things being safe back home.
Protecting an empty home is a priority for many and with so much reliance these days on video surveillance cameras and alarm systems that alert the police to a break-in, sometimes it’s just as important for people to slow down between the planning and the packing and to remember what they can do themselves to secure their home the old-fashioned way.
Dec 15, 2008
A Glut Of Abandoned Homes
According to the Orlando Sentinel, cities already strapped for cash face a new burden: keeping homes in foreclosure from dragging down property values of neighboring homes.
Tall grass at these abandoned homes is creating eyesores and attracting bugs and snakes. Though some HOAs are cutting the grass, cities have begun sending their own workers out with lawn mowers.
Dec 11, 2008
Small & Affordable Ways To Invest In Your Home
There are many small and affordable ways to invest in your home today. These projects are small investments of time and money you can make in your home - one project at a time. Not only will you enjoy these improvements, but they will also be strong selling features if and when you decide to sell your home.
These improvements are in demand by buyers today:
- Storage
- Ceiling Fans
- Light Fixtures
- Window Coverings
- Appliances
- Paint
- Faucets
- Hardware
These improvements are in demand by buyers today:
- Storage
- Ceiling Fans
- Light Fixtures
- Window Coverings
- Appliances
- Paint
- Faucets
- Hardware
Dec 9, 2008
1031 Exchange
Property owners considering “selling” their investment property may want to consider “trading” it in a 1031 exchange.
What Is It? In a 1031 exchange, a property owner “trades” a relinquished property for a “like-kind” replacement property while deferring the payment of federal income tax and some state tax on the transaction.
A 1031 exchange is tax-deferred - not tax-free. When a replacement property is ultimately sold (not as part of another exchange), the original deferred gain plus any additional gain realized since the purchase of a replacement property is subject to tax.
Like-Kind Property All real property is considered “like-kind” with other real property of the same nature and quality. Both a relinquished and a replacement property in a 1031 exchange must be held for investment purposes or for productive use in a business. A primary residence, second home or vacation home does not qualify for a 1031 exchange.
Some examples of qualified like-kind real property include:
- rental property
- office suite
- retail space
- vacant land
Benefits Some of the benefits of a 1031 exchange include:
- Postpone or potentially eliminate tax due on any gain in the sale of qualifying investment property.
- Acquire and dispose of property to reallocate your investment portfolio without paying tax on any gain.
- More money available to invest in another investment property. In effect, you receive an interest-free loan from the federal government in the amount you would have paid in tax on any gain.
Qualified Intermediary A Qualified Intermediary (QI) - an independent party who facilitates the exchange - is required to transact a 1031 exchange. The exchange ends the moment the taxpayer has actual or constructive receipt of sale proceeds of a relinquished property. The QI holds all sale proceeds until funds are needed to acquire a replacement property. The QI then delivers the funds directly to the closing agent.
What Is It? In a 1031 exchange, a property owner “trades” a relinquished property for a “like-kind” replacement property while deferring the payment of federal income tax and some state tax on the transaction.
A 1031 exchange is tax-deferred - not tax-free. When a replacement property is ultimately sold (not as part of another exchange), the original deferred gain plus any additional gain realized since the purchase of a replacement property is subject to tax.
Like-Kind Property All real property is considered “like-kind” with other real property of the same nature and quality. Both a relinquished and a replacement property in a 1031 exchange must be held for investment purposes or for productive use in a business. A primary residence, second home or vacation home does not qualify for a 1031 exchange.
Some examples of qualified like-kind real property include:
- rental property
- office suite
- retail space
- vacant land
Benefits Some of the benefits of a 1031 exchange include:
- Postpone or potentially eliminate tax due on any gain in the sale of qualifying investment property.
- Acquire and dispose of property to reallocate your investment portfolio without paying tax on any gain.
- More money available to invest in another investment property. In effect, you receive an interest-free loan from the federal government in the amount you would have paid in tax on any gain.
Qualified Intermediary A Qualified Intermediary (QI) - an independent party who facilitates the exchange - is required to transact a 1031 exchange. The exchange ends the moment the taxpayer has actual or constructive receipt of sale proceeds of a relinquished property. The QI holds all sale proceeds until funds are needed to acquire a replacement property. The QI then delivers the funds directly to the closing agent.
Dec 5, 2008
All About Co-Ownership
When two or more people own an interest in property, they are considered concurrent owners. The amount of control a co-owner has in their property is affected by how they hold ownership to the property. Varying forms of ownership dictate whether or not a co-owner can give their property away or how a co-owner’s interest passes to their estate or heirs upon their death.
The three forms of co-ownership are:
Tenancy In Common This form of ownership is the most commonly used form of co-ownership behind husband-and-wife ownership. Any number of people may own property together as tenants in common. Tenants in common may have acquired title at the same time or different times. Tenants in common may hold different percentages of ownership in the property. Each owner has an undivided interest in the property (an interest in the entire property, not just one particular party of the property). A tenant in common’s interest may be transferred or inherited, in which case the heir becomes a new tenant in common with the other co-owners.
Joint Tenancy This form of ownership is characterized by the right of survivorship. Joint tenants acquire title at the same time. Joint tenants hold an equal percentage of ownership in the property. Joint tenants have an undivided interest in the property (an interest in the entire property, not just one particular party of the property). When one co-owner dies, their share of the property goes to the surviving co-owner – not the heirs of the deceased.
The three forms of co-ownership are:
Tenancy In Common This form of ownership is the most commonly used form of co-ownership behind husband-and-wife ownership. Any number of people may own property together as tenants in common. Tenants in common may have acquired title at the same time or different times. Tenants in common may hold different percentages of ownership in the property. Each owner has an undivided interest in the property (an interest in the entire property, not just one particular party of the property). A tenant in common’s interest may be transferred or inherited, in which case the heir becomes a new tenant in common with the other co-owners.
Joint Tenancy This form of ownership is characterized by the right of survivorship. Joint tenants acquire title at the same time. Joint tenants hold an equal percentage of ownership in the property. Joint tenants have an undivided interest in the property (an interest in the entire property, not just one particular party of the property). When one co-owner dies, their share of the property goes to the surviving co-owner – not the heirs of the deceased.
Tenancy By The Entireties This form of ownership is basically a joint tenancy between husband and wife. When one spouse dies, their interest automatically transfers to the surviving spouse. Neither spouse can will any portion of their interest; however, this form of ownership can be divided by annulment or divorce.
Dec 2, 2008
The Realtor Difference: Time, Energy, Effort
Your time is valuable. Selling a home takes an extraordinary amount of time, energy and effort. A majority of homeowners cannot give the necessary time, energy and effort needed to sell their own home for maximum dollars in minimum time with minimum hassle. This is another key area where the value of a realtor is keenly apparent. It is a realtor’s job to spend their time, energy and effort to actively market your home and seek a buyer who is ready, willing and able to buy your home. A realtor is uniquely motivated to get your home sold because a realtor only gets paid at the closing table.
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