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Beware of real estate debt elimination schemes

By Jack Guttentag, Monday, January 2, 2006.

Q: "A firm called Success Trust & Holding LLC has offered, for $4500, to make my mortgage payments for three years, at which point my mortgage will have been completely paid off. In addition, they will pay me an amount equal to the value of my house at that time. Comments?"

Among the early mortgage payoff schemes I have looked at in recent years, this is perhaps the most outrageous.

The STH plan makes other early payoff plans look benign in comparison. The others ask you to pay them for showing you how to accelerate the repayment of your mortgage with your money.  more...

Real estate listing requirements now more detailed

By Dian Hymer, Monday, January 2, 2006.

For years, sellers have been in the driver's seat. Now the tide has turned. Sellers are no longer calling the shots. However, sellers who take a proactive approach to selling their home can still have an edge in the new selling environment.

It's a given that sellers who expect to sell for top dollar need to have their homes in prime condition. But, bringing about a successful sale has to do with more than just looking good.

Today's buyers are sophisticated and they are cautious.  more...

Is reverse mortgage income taxable?

By Robert Bruss, Monday, January 2, 2006.

DEAR BOB: I especially enjoy your articles about senior citizen reverse mortgages. I have clipped and saved them. I am a 65-year-old widow and own my home valued around $550,000. I would like to do some remodeling and am thinking of taking a reverse mortgage lump sum for about $50,000. What will that do to my income tax situation? I also own four rental properties and have a comfortable retirement income. Will the reverse mortgage put me in a higher income tax bracket? – Judith H.

DEAR JUDITH: A reverse mortgage will have no effect on your income taxes.  more...