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Seniors: it's OK to think in reverse

By Tom Kelly, Wednesday, November 25, 2009.

"You won't really know unless you ask."

The popular phrase has been used often in many households -- especially when kids seek an answer for being left off a team, when wage earners wonder about a possible salary increase, or if carpool drivers can shift to a different day. more...

Many REO buyers hit financing snag

By Tom Kelly, Thursday, November 19, 2009.

Remember when lenders were content to sell foreclosed homes to any qualified buyer? Their popular message was "we're in the lending business, not in the real estate business."

With the large number of REOs (real estate owned) overwhelming most mortgage lenders and driving many others out of business, it's curious that some are making stringent demands on how foreclosed homes are financed.

A few lenders are even requiring that they supply the financing for any foreclosed property in their portfolio. more...

Homebuyer optimism dodges reality

By Tom Kelly, Wednesday, November 11, 2009.

Is there too much excitement about the recent gains in the housing market? Can the jump in sales figures this past summer truly be sustained?

Some of the nation's foremost housing experts question some national data and trends and are wary about the number of adjustable-rate mortgages (ARMs) that are scheduled to adjust in the next nine months. more...

IRS tax credit safeguards fall short

By Tom Kelly, Thursday, November 5, 2009.

A 4-year-old …? How does a 4-year-old get approved for an $8,000 first-time homebuyer tax credit?

While Realtors, lenders, appraisers, home inspectors, escrow officers and every other professional service connected to home sales and financing are lobbying for an extension of the first-time homebuyer housing credit, a recent audit revealed thousands of fraudulent claims and a need for more safeguards to support the popular program. more...

The pitfalls of property exchanges

By Tom Kelly, Thursday, October 29, 2009.

With the number of bargain properties now on the local real estate market, you would think both investors and owner-occupants would be racing to take advantage of attractive deals.

While many potential homeowners -- especially first-time buyers attempting to beat the Nov. 30 deadline and take advantage of the $8,000 federal tax credit -- have re-entered the market and have made compelling offers to purchase Puget Sound homes, investors have been reluctant to capitalize on reverse tax-free exchanges. 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...

First-time buyer tips for smooth closing

By Tom Kelly, Thursday, October 15, 2009.

Just when the party is beginning to show signs of life, do you take away the only punch bowl?

Even though first-time homebuyers are driving the housing market, there has been little energy in the nation's capital to extend the $8,000 tax credit beyond the Nov. 30 deadline.

That doesn't mean that some of the more influential trade organizations in this country have stopped trying to convince legislators that the first-time incentive is key to sustaining any semblance of housing momentum. more...

Popular reverse mortgage cuts loan limits

By Tom Kelly, Thursday, October 8, 2009.

While reverse mortgages have become a bigger part of the senior population's financial picture, the nation's most popular program has undergone a mandatory change that will reduce the total proceeds available to FHA-insured reverse mortgage borrowers.

The move is in response to a projected $798 million shortfall in the Federal Housing Administration's budget for the Home Equity Conversion Mortgage in fiscal 2010. The fiscal year for the U.S. Department of Housing and Urban Development -- the agency that oversees FHA -- began Oct. 1. FHA is now shouldering a greater portion of the residential loan load and its insurance component has come under greater scrutiny because of it. more...

Real estate realism vs. optimism

By Tom Kelly, Thursday, October 1, 2009.

Flickr image by <a href="http://www.flickr.com/photos/shivani_rana/3291631671/">Februum</a>.

Despite the growing optimism regarding the recent uptick in the market, there is no getting around the underlying foreclosure outlook for U.S. residential property.

Cliff Bowman, the Vancouver, B.C.-based marketing expert who turned pre-selling condominium buildings into an industry art form, pointed to data by credit bureau Equifax and Moody's showing that recent home price declines have left 24 percent of all homes in the U.S. with debt that is greater than their value.

"People in Canada are in a better situation," Bowman said. "I don't know why that is ... perhaps they were better prepared." more...

Cashing in on vacationers

By Tom Kelly, Wednesday, September 23, 2009.

It was only for eight days, yet it was a first.

The retired couple at a remote mountain lake had just rented out their waterfront cabin -- once the family getaway and now serving as their primary residence -- for the first time in the 42 years they have owned the property. Instead of leaving the place vacant when they went to their niece's July wedding in upstate New York, they pocketed $1,600 tax-free dollars.

According to the most recent HomeAway Vacation Rental Marketplace Report, the couple is not alone. more...

Beware when co-signing lease

By Tom Kelly, Thursday, September 17, 2009.

The oven didn't work, so the barbecue was constantly fired up in the tiny backyard. The sofa had no casters and was supported by old paperbacks the owners hadn't cracked in months. Shelves were composed of red bricks and any available wood planks. Mattresses and box springs neither matched nor were afforded the luxury of a frame.

There were always dirty rugby shoes outside the front door and rarely anything more than milk, bologna and beer in the refrigerator.

Thirty-eight years ago, our senior year of college, it was home -- for $200 a month, split four ways. more...

Give your kids the gift of home

By Tom Kelly, Thursday, September 10, 2009.

Flickr photo by <a href="http://www.flickr.com/photos/fauxen/337884210">Fauxen</a>.

If you saw a nice home for sale near a college or university before your youngster began the fall semester, perhaps you could help that child -- or another potential first-time homebuyer in your family -- get into the door of that home while taking advantage of a terrific tax incentive at the same time.

In a recent article, we explored the possibilities of owning an investment home near a college campus and having a college student live there as an alternative to an on-campus dormitory. What if your child were handed an $8,000 tax credit, or downpayment incentive, to purchase that home? Would that change the picture? more...

Co-signing mortgage a big risk

By Tom Kelly, Thursday, August 27, 2009.

If your credit history is atrocious and you spend money long before you get it, having someone co-sign your home loan is not going to solve your problems -- unless that person plans to move in with you.

Co-signers, or co-borrowers, can help bring you up to the income needed to qualify for a loan, but guidelines can be very specific depending on the type of loan. Usually the key word is "occupancy."

According to mortgage professionals, a co-borrower will not make bad credit good. People are often mistaken that the co-borrower's credit will solve the credit problems for the person planning on living in the home. more...

Fraud scars image of reverse mortgages

By Tom Kelly, Wednesday, August 19, 2009.

Comparing every loan's shortcoming -- real or perceived -- to a "subprime" product needs to stop.

For example, U.S. Comptroller of the Currency John Dugan made an astonishing remark in a prepared statement recently in Orlando: "Consumer compliance risks with reverse mortgages are real, and indeed, I am struck by some of the similarities to the risks of subprime mortgages." more...

Make money from second-home rental

By Tom Kelly, Thursday, August 13, 2009.

While family and friends can be the key to a successful vacation rental property, they also can be a major pain in the backside.

One of the most difficult things to handle -- and the biggest obstacle to your bottom line -- is when Uncle Fred wants to use your getaway for two nights -- midweek -- during the final week of the peak rental season when you could have booked the place for top dollar for 30 consecutive nights.

If there is no way around Uncle Fred's two-day presence, ask if he can move his dates to the beginning or end of the rental week when you still could salvage four or five nights of prime rental income. If that's also impossible, call the renters on both ends of Fred's dates and ask if they would like additional days at a reduced rate. You could turn out to be a real hero to both groups, especially if they are arriving by car and don't have to alter their airplane dates. more...

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