Archive - Columnist Article | Real Estate and Technology News for Agents, Brokers and Investors

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Avoiding costly mortgage mistakes

By Jack Guttentag, Monday, October 26, 2009.

Flickr image by <a href="http://www.flickr.com/photos/oddsock/2640764495/" target=blank>oddsock</a>.

Shortly after starting my Web site, I decided to add a feature on some of the common mistakes borrowers make, and how to avoid them. Today, there are about 100 mistakes on the list, and it continues to grow.

Recently, I decided to take another look at this list as I pondered a different question: Why do mortgage borrowers make so many mistakes, and are there changes in the system that would reduce them? more...

Give the buck a break

By Lou Barnes, Friday, October 23, 2009.

Flickr image by <a href="http://www.flickr.com/photos/hammer51012/3010232028/" target=blank>Hammer51012</a>.

Treasury and mortgage rates have again reached their post-August highs, but still in tight ranges: the 10-year Treasury note at 3.48 percent and low-fee mortgages just under 5.25 percent.

The producer price index fell hard in September, down 0.6 percent, the much-hoped-for re-building of inventories not yet under way. Initial claims for unemployment insurance unexpectedly rose, back in the 525,000-550,000 weekly band. more...

Homebuyer's tax savings plan foiled

By Tara-Nicholle Nelson, Friday, October 23, 2009.

Q: I recently got into contract to buy a foreclosed home. I put $35,000 down, and the closing is in a couple of days. The first day I hired my title attorney I mentioned to her that I wanted my mother to be on the deed in order to get the taxes reduced. Now, the lawyer is telling me that I have to wait until after the closing, do a new title search under my Mom's name, and pay the attorney again to include my Mom on the deed. I feel like it's too late to stop everything now -- what did I do wrong?

A: It used to be the case that you couldn't put a co-owner who was not also a co-borrower on title during the course of a purchase transaction. more...

Go green ... or else

By Arrol Gellner, Friday, October 23, 2009.

On Sept. 1 of this year, the European Union began banning the sale of incandescent light bulbs -- another well-meaning but heavy-handed effort on the part of EU bureaucrats to go green. This is the same government, you may recall, that blundered into requiring that 5.75 percent of its fuel come from biofuel sources by 2010 -- a mandate as ill-considered as it was premature.

Anyone who feels like tut-tutting the European nanny state, though, should know that, here in the good old free-market U.S., our own government is planning to phase out incandescent bulbs beginning in 2012. Rather than letting the obvious economies of more efficient lighting speak for themselves, Congress feels obliged to fine-tune America's buying habits with a sledgehammer. more...

Winterize your home

By Paul Bianchina, Friday, October 23, 2009.

Hard to believe it's that time again! Fall is here, and you need to start getting your home ready for the winter months to come. To help get you started, here's a checklist of some of the projects that you need to consider:

Indoors

__ Check the fireplace: It's about time to get those logs burning, so get the fireplace ready! Clean the fireplace chimney or wood stove flue using brushes approved for the size and type of flue you have. If you're not partial to ladders, roofs and soot, this is a good project to leave to an experienced chimney sweep company. A good chimney sweep will also inspect the fireplace from top to bottom, and talk to you about any repairs that need doing. Clean out the firebox, making sure you place the ashes in a fireproof container with a tight lid for proper disposal. If you have an airtight wood stove or fireplace insert, check the door-seal gasket, and clean the glass on the door. more...

Rules for charging 'pet rent'

By Janet Portman, Friday, October 23, 2009.

Q: I'm interested in a rental that describes the rent in an odd way: First, the advertisement lists the rent, then it adds "pet rent." Is this legal? --Rigoberto R.

A: It's perfectly OK for an ad to specify that if a tenant has a pet, the rent will be a certain amount more than the stated rent (unless, of course, the property is subject to local rent control, as explained below). The rent is the rent, whether the landlord chops it up into little pieces ($200 for the ceiling fan, $100 for keeping a dog, etc., for a total of $X,000 rent), or simply announces one flat sum. That said, a few things need to be kept in mind: more...

Layoffs prolong luxury housing pain

By Steve Bergsman, Friday, October 23, 2009.

In December 2008, my son was laid off from his job at a hedge fund, which had shut down operations and ceased functioning as an ongoing business. Three months later, his severance pay ended and he was still unemployed, with no job offers in sight.

My son is a homeowner, having bought a townhouse four years ago in Weehawken, N.J., just the other side of the Hudson River from Manhattan. When he walks out his front door, he can see the gleaming towers of the Big Apple in the distance. The good news for my son is that when he acquired his property, he bought at a very reasonable price with an adjustable-rate mortgage, which he refinanced a few years later with a 30-year-fixed-rate mortgage. The mortgage payments are not onerous. more...

7 ways to say: 'How's the market?'

By Joseph Ferrara, Friday, October 23, 2009.

Flickr photo by <a href="http://www.flickr.com/photos/dspender/3354312914/" target=blank>David Spender</a>.

Every real estate agent is asked, again and again, to give an opinion on the market. And too often that answer is in the form of a one-word answer.

That's a mistake. There is a better way to answer this question. In fact, there are seven better ways. These take your opinion, which most consumers will discount, out of the equation.

It is best to calculate all of the following indicators and use your local market statistics. more...

Sellers, don't fret over repairs

By Bernice Ross, Thursday, October 22, 2009.

DEAR BERNICE: My husband used to work in the construction industry before he earned his college degree. He's pretty handy and can fix most things around the house. We recently listed our house and received an offer. When the buyers did their physical inspection they came back with a laundry list of things for us to fix. My husband can handle most of the work, but our Realtor was really against it. She recommended giving the buyers a credit and letting them do the work. She also recommended that we pay for a home warranty for the buyers. My husband isn't thrilled about her ideas. What do you recommend? --Cathy Y.

DEAR CATHY: It's your house and your decision about how you handle this. However, I'm inclined to agree with your agent on both accounts. A number of years ago I had an attorney client who purchased a home. The roof was leaking and needed repair. The seller provided us with receipts stating that the roof had been repaired, and we closed the transaction. more...

Best buyer's agent: stranger or family?

By Tara-Nicholle Nelson, Thursday, October 22, 2009.

Q: Do you think it's OK to use a member of your family as a buyer's agent? What kind of problems do you think we will run into using a family member as our Realtor?

A: I am aware of the old adage cautioning against doing business with family members and friends. However, I am also aware, from personal experience, that when the stakes are as high as they are in a homebuying transaction, it is critical that your agent care intensely about you and your best interests. Who would care more than your relative?

But you are right to have concerns and to think about the pros and cons. There are a number of implications to take into consideration before working with your family member as your buyer's agent. more...

The builder-boomer disconnect

By Tom Kelly, Thursday, October 22, 2009.

The move-down market is really moving across … and it's keeping its money closer to home.

Homebuyers aged 55 and over are seeking homes approximately the same size as their present home and, unlike six years ago, they no longer prefer to pay cash. In 2002, 60 percent of builders reported that buyers paid cash, while only 23 percent of builders in 2008 described their customers as cash buyers.

Fixed-rate loans dominate a new 55-plus homebuying market study with adjustable-rate mortgages running neck-and-neck in popularity with reverse mortgages. more...

Who gets security deposit in divorce?

By Robert Griswold, Thursday, October 22, 2009.

Q: Our tenants are currently on a month-to-month rental agreement and apparently have just gone through a separation and divorce. He left several months ago and she and the children have been in the house for the past nine months. She has paid the rent and the utilities and has maintained the place in good order. She had more money coming in during the separation and now that the divorce is final, she tells me that she has less income from her ex-husband so she needs to move to a less expensive home.

She gave me a written notice last Friday that she is moving at the end of the month, and the ex-husband showed up last night at my house and angrily demanded that he get the full security deposit back right then and there. more...

Branding: just another buzzword

By Teresa Boardman, Wednesday, October 21, 2009.

McDonald's is a great example of a brand. The company has a logo that most 2-year-olds can easily identify and I can't imagine that there is anyone in the country who doesn't know what a McDonald's restaurant is.

Most people don't need to "trust" the brand to buy a burger; it is just a burger, not a major purchase that will have an impact that lasts longer than a couple of hours.

When it comes to services, like the services that a real estate agent offers, I refuse to believe ... more...

Losing home to lender fraud

By Tara-Nicholle Nelson, Wednesday, October 21, 2009.

In the case Martin et al. v. Harpaz et al., homeowners Isaac and Lizzette Martin were building a new home and took out a series of construction loans to fund the project. The lender, Yair Harpaz of Private Investors Financing, claimed to have funded the third loan, but in fact only partially funded it.

Because the third loan was never fully funded and the lender refused to cooperate with the homeowners' efforts to refinance the loans, the homeowners could not complete the construction and the lender foreclosed on the home despite the fact that the loan was not in default. more...

Foam roof a 2-for-1 deal?

By Bill and Kevin Burnett, Wednesday, October 21, 2009.

Q: We would appreciate your advice regarding our San Francisco home's roof.

We have a 1915 Edwardian with a flat tar-and-gravel roof in one of the "sunny" San Francisco neighborhoods. We've had the home for a dozen years, and while we don't know the date of the last roofing job, my husband thinks it's time to reroof.

I would like some insulation on our top floor -- insulation seems an afterthought in the house as a whole -- and my husband is thinking of installing tubular skylights called Solar Tubes to bring light into the two north rooms of the house. There is some blown-in insulation -- not sure how extensive because the access to the attic is via a small space I can barely poke my head into. more...