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Home buyer sues when appraiser misses leaky roof

By Tom Kelly, Wednesday, May 14, 2008.

It's been more than 13 years, but "the leaky roof" case in Washington state is still at the top of the list when it comes to defining and understanding the basic responsibilities of appraisers and inspectors. It's also become the prime ammunition used by defense attorneys in seeking restitution for their clients. more...

Despite housing crunch, boomers still buying in Mexico

By Tom Kelly, Wednesday, May 7, 2008.

The baby boomer generation continues to drive the search for second homes, not just in the United States but in Mexico and throughout Latin America as well.

According to a new survey from the National Association of Realtors, vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33 percent of all existing- and new-home sales. more...

Why not raise reverse mortgage limits?

By Tom Kelly, Wednesday, April 23, 2008.

While loan limits for conventional mortgages recently were raised with the passage of the Economic Stimulus Act of 2008, those seniors hoping to tap into additional home equity via the nation's most popular reverse mortgage are stuck with the same loan ceilings -- at least for now. more...

Second-home buyers sold on GarageTown

By Tom Kelly, Wednesday, April 16, 2008.

The idea wasn't exactly an accident, but it was not at the top of the to-do list either. In the end, it resulted in a second-home gathering place in close proximity to home itself -- especially for casual collectors and automobile enthusiasts.

Several years ago, when Cyndie Johnson and her late husband were planning a residential community near Coeur d'Alene, Idaho, the couple needed to purchase an additional piece of property to provide another access easement for the development. more...

Relief in mortgage forgiveness, PMI deduction

By Tom Kelly, Wednesday, April 9, 2008.

Homeowners who went through foreclosure in 2007 could receive a benefit on their federal income tax return thanks to the Mortgage Forgiveness Debt Relief Act of 2007. Under the new law, taxpayers no longer have to pay tax on the value of their home loan if the loan was cancelled through a foreclosure proceeding, otherwise known as "cancellation of indebtedness income." more...

Property taxes too high? File an appeal

By Tom Kelly, Tuesday, April 8, 2008.

It's the time of year when you always wonder why you didn't pay your property taxes along with your monthly mortgage payment. The idea of keeping the money in the bank and earning interest sounds great, but actually doing it is another matter.

That huge figure at the bottom of the assessor's coupon statement adjacent to the bold-face words "KEEP THIS PORTION" could have been chopped into 12 pieces that now sound affordable, and whisked away each month with your principal and interest, taxes and insurance payment, commonly known as "PITI." more...

Union workers eligible for mortgage relief

By Tom Kelly, Wednesday, March 26, 2008.

While trying to understand the new Internal Revenue Service guidelines regarding the ability to deduct mortgage-insurance premiums, the topic of unemployment insurance surfaced with regard to the Hollywood writers' strike.

How would the 10,000 members of the Writers Guild of America, along with the related surface industries affected by the walkout, afford to keep their homes if the three-month-old strike continued? more...

Reverse mortgage bails out seniors facing foreclosure

By Tom Kelly, Wednesday, March 19, 2008.

George A. Downey, a longtime reverse-mortgage lender, walked into a seminar designed to help people explore creative financing alternatives in an attempt to avoid default and foreclosure.

"There were some older folks in the room, but nothing was ever offered about a reverse mortgage being a possibility," said Downey, founder of Braintree, Mass.-based Harbor Mortgage. "The numbers have to work, but if they do, it can be a godsend for them. The current mortgage is paid off; they keep the house; and they have no future payments. …" more...

Prepaying loan on second home pays off

By Tom Kelly, Wednesday, March 12, 2008.

Big-ticket items have been relegated to the back burner for now. The reduce-your-debt environment continues -- just ask the major home-improvement contractors who have taken on more and more jobs.

Consumers clearly are pulling in the financial reins. One of the reasons Congress has passed a stimulus package is to get Americans to loosen their grip, spend more cash and begin to turn the economy around. more...

IRS rule makes it easier to swap property

By Tom Kelly, Wednesday, March 5, 2008.

The Internal Revenue Service has handed investors and second-home owners a new gift in the form of a safety net that provides a "safe harbor" for taxpayers who wish to swap the property via a Section 1031 tax-free exchange even though they have enjoyed personal use of the property. more...

Second-home buyers learn shocker on moving day

By Tom Kelly, Wednesday, February 27, 2008.

What you see is what you get, right? Not necessarily in real estate, unless you go out of your way to document your expectations and assumptions and make them known to the seller. This is especially true in recreational properties that are in remote locations. more...

Real estate IRAs with checkbook control gain clout

By Tom Kelly, Wednesday, February 20, 2008.

Individual retirement accounts that feature self-directed real estate purchases have become more understood in recent years, and consumers now a have speedier avenue to time-sensitive investments.

Many providers of self-directed real estate IRAs now can set up a limited liability company (LLC) that allows consumers to write their own checks for property investments -- including foreclosures and recreational properties -- without waiting for a custodian to process paperwork or courier documents.

"The costs for setting up an IRA with checkbook control can be considerably more th more...

New plan makes tapping home equity easier

By Tom Kelly, Wednesday, February 13, 2008.

Equity sharing was viewed as the biggest negative to early reverse mortgages and it still plagues the reverse industry today. However, a San Francisco-based company is resurrecting the concept of sharing home equity -- with no interest, no payments and no age restrictions.

The REX Agreement is not a reverse mortgage, nor is it a loan. It is a financial agreement whereby the homeowner trades a portion of future equity for a cash payment today. more...

Buying second home offers tax break, but at a price

By Tom Kelly, Wednesday, February 6, 2008.

A friend of mine thought he would take advantage of the rotten winter weather -- and the perception that real estate is about the same -- and make a low-ball offer on a piece of recreational property that one day could become his second home.

His theory was that owners of summer lake cottages felt removed from their sunny getaways at this time of year and those older owners, reluctant to tackle another stretch of off-season maintenance and security, would especially be more likely to consider a cash proposal during the dark days of winter. more...

Second-home buyers flocking to Las Vegas

By Tom Kelly, Wednesday, January 30, 2008.

LAS VEGAS -- Where do you start with CityCenter, the 18.6 million-square-foot, $7.4 billion hotel, casino, retail and residential complex on 76 prime acres of this city's legendary Strip?

It is the largest privately financed construction project in U.S. history. Its workforce is expected to swell to 7,000 tradesmen and 350 supervisory personnel. It is recycling 80 percent of its construction waste. more...

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