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Don't rely on agent's choice for loan, title services

By Tom Kelly, Tuesday, August 26, 2008.

Real estate agents are clearly the most influential persons in every real estate transaction and their power is not reserved for buyers and sellers -- it extends to all professionals involved.

That position of influence becomes magnified in a slower housing market. Everybody is desperate for deals. And, while Realtors typically offer beneficial referrals, consumers should always remember that they have a choice when picking the various players in the home-buying process -- appraisal, credit report, title report, escrow company, mortgage company, etc. more...

Option ARM fallout to surpass subprime mess

By Tom Kelly, Tuesday, August 19, 2008.

In a recent column, shortly after Washington Mutual announced it would no longer offer its option adjustable-rate mortgage (ARM) to home buyers, I noted that the program was a benefit to our family because it allowed us to adjust our monthly payments given the educational needs of our four growing children. more...

Make your vacation home a boat

By Tom Kelly, Tuesday, August 12, 2008.

It seems boat traffic has slowed this summer on local lakes. Higher fuel costs clearly are pinching the busiest leisure time of the year.

However, a significant blow to the masses is not even a light tap to the rich. Astonishingly, it could not be a better time to be a builder of large yachts. A recent report indicates the number of mega-yachts is not only on the rise, but that shipbuilders around the world are having difficulty employing enough workers to meet the demand. more...

Put part-time rental cash in your pocket

By Tom Kelly, Tuesday, August 5, 2008.

It's the time of year for weddings in faraway churches and family reunions in relaxing places. Perhaps friends (or friends of friends) have approached you about renting your home or vacation cabin when you are not using it this year. And, they are willing to pay -- an amount in line with the best rental properties in the area.

Do you have to declare the income to the Internal Revenue Service on your annual income tax return? How much is too much before crossing into different tax threshold? more...

First-time home buyers can tap IRA

By Tom Kelly, Tuesday, July 29, 2008.

A friend of mine is a single mom who became a real estate salesperson several years ago following her divorce. She had a consistent flow of buyers and sellers until the beginning of the year when the market slowdown became even more apparent in many Pacific Northwest neighborhoods.

She postponed a long-awaited kayak trip because an out-of-state buyer was coming into town with a reportedly all-cash offer for a waterfront cottage. I laughed and teased her about postponing the trip when I found out the man was single. more...

Next foreclosure wave sparked by walkaway homeowners?

By Tom Kelly, Tuesday, July 22, 2008.

Where's the bottom? Are Phoenix, Denver, Sacramento, South Florida and Las Vegas still in a tailspin? Is it time to make a run at a second home you felt you could never afford?

Perhaps we have been too driven and proud of the fact that 70 percent of all families in this country own their homes. In order to get there, lenders, real estate agents and consumers dipped into a "too easy" bucket where the value of ownership sunk to the same level of the cost of getting in the door -- zero. more...

Option ARM loans aren't all bad

By Tom Kelly, Tuesday, July 15, 2008.

The memory of a no-nonsense conversation, held more than a decade ago, hit home then and is vivid today.

"This probably would not be the loan for a person who planned on making just the minimum payment every month," said the Washington Mutual senior loan consultant. "It's a great program for borrowers who really might use the flexible payments, but if you stay with the minimum, you are absolutely going to owe more than you borrow." more...

Reverse mortgages at risk in Washington state

By Tom Kelly, Tuesday, July 8, 2008.

Well-intentioned consumer groups have done an admirable job of curbing the abuses of mortgage lenders, but recent legislation passed in Washington state will inadvertently curtail the number of lenders able to offer reverse mortgages. Lenders in other states are watching with interest.

In a nutshell, Washington state consumers pushed their representatives to increase lender licensing requirements and scrutinize all negative-amortization loans. Negative amortization occurs when the monthly loan payment is less than the principal and interest needed to pay off the loan in a specific period of time. The difference is added to the loan amount, so that the borrower owes more than the amount initially borrowed. more...

Home buying heats up south of the border

By Tom Kelly, Tuesday, June 24, 2008.

The cold U.S. housing and mortgage markets have lenders looking for warmer possibilities, and a few are sending more efforts to finance Americans looking to purchase primary residences and second homes south of the border.

New York-based Lehman Brothers Resort Home Lending (1-866-233-4799) will enter the market in a big way, offering U.S. consumers mortgage packages this year in Mexico and Costa Rica, beginning July 1. The company plans to offer borrowers in Canada and the United Kingdom similar loan programs in Mexico and Costa Rica by the end of the year. more...

Buy home, get free air miles

By Tom Kelly, Tuesday, June 17, 2008.

Air miles are a curious commodity. The people who have the most rarely take the time to figure out how to most efficiently use them, while others who guard them like gold would happily miss their mother's birthday if they could fly someplace "for free."

Perhaps it's been the rotten early spring weather, the need to travel at this graduation time of year, or the real estate industry pulling out all the stops to accentuate the positives of buying a home and getting a mortgage, but I have been hearing and reading more announcements intended to tweak my interest in air miles and getaways. more...

How we scored our weekend getaway

By Tom Kelly, Tuesday, June 10, 2008.

When the kids were younger and "needed a nap," I would stick them in the old Volkswagen bus, sprinkle a few Cheerios in the tray of their car seat and drive around looking at interesting properties until long after they had fallen asleep.

The truth is I eventually would have made the drive anyway because I'm interested and curious (sometimes appalled) with the way owners utilize real estate. I also am a dreamer when it comes to waterfront and view land and often wonder "what could be" if I happened upon something remotely affordable. more...

Home won't sell? Rental strategy may work

By Tom Kelly, Thursday, June 5, 2008.

It's a sign of the times: Many homes are taking longer to sell, and sellers are accepting less than they imagined.

While it's often critical to pull out the equity in a primary residence in order to buy another primary residence, the Internal Revenue Service provides a relatively new advantage for homeowners who must rent out their property now because of a slow sales market. Instead of selling it later and paying a capital gain as an investment property sale, owners can take out tax-free cash and defer the remainder via a tax-deferred exchange. more...

Despite economy, timeshares drum up big business

By Tom Kelly, Tuesday, May 27, 2008.

Timeshare buyers are cautioned about labeling their weeks as "investments." Think of it as "prepaid vacations," timeshare developers famously say.

While an investment, especially in real estate, often stands an excellent chance of making money, the usual return on a timeshare typically centers on enjoyment rather than cash. more...

Cash-strapped homeowners eye equity sharing

By Tom Kelly, Tuesday, May 20, 2008.

The soft national housing market and chaotic mortgage environment has sent lenders and investors back to the drawing board in an effort to sharpen their pencils and produce an alternative to corral new business.

The latest niche product designed to tap the trillions dollars of equity tied up in seniors' primary residences has spread not only to second homes but also to residential rentals and commercial properties. more...

Home buyer sues when appraiser misses leaky roof

By Tom Kelly, Tuesday, May 13, 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...

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