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'Life estate' proves to be a nightmare for heirs

By Robert Bruss, Monday, February 9, 2004.

DEAR BOB: You helped me once before on a different real estate issue; I hope you can be as successful for me now. My father died about three years ago at age 78, leaving his estate to my brother and me. We divided the assets equitably with no problems, except for his house. Our father, who was "losing it" and becoming senile by the time he died, left the house to us, but subject to a life estate for his live-in girlfriend, now age 56. She lives in the house but is letting it badly deteriorate.  more...

Flexible-payment ARMs bring high rewards, high risks

By Jack Guttentag, Monday, February 9, 2004.

"Can you explain flexible-payment ARMs, and their pros and cons?"

A flexible-payment ARM (FPARM) is an adjustable-rate mortgage that allows (but does not compel) borrowers to make very low initial mortgage payments that rise over time. The major drawback is that those who select the minimum payment option may suffer "payment shock" – a sudden and sharp increase in the payment for which they are not prepared.  more...

What do I need to know before buying a new home?

By Dian Hymer, Monday, February 9, 2004.

Recently a mini subdivision of upscale homes was built in a desirable neighborhood in the Oakland Hills of northern California. The homes in the project were reasonably priced. They sold quickly, some to buyers who were moving from older homes in the same area.

The appeal of a brand-new home is obvious. You get to be the first person to occupy the property. It hasn't been messed up by negligent owners or botched up by bad remodeling. And in most cases, the maintenance and upkeep will be minimal, at least for a while.  more...