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| The Paschall Group's Smoky Mountain Newsletter |
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LOCAL EVENTS! Fun Things to Do in the Smokies! http://www.gaelpaschall.com/calendar.asp |
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ELEGANT GOLF-SIDE VILLA! Elegant Country Club Residence in Private, Gated Setting! 2BR/2BA/Port-Cochere. $185,000. http://www.gaelpaschall.com/DispListing.asp?ListingID=124238&AdminID=276&PropertyType=A&BuyerID= |
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PASTORAL SETTING ! Delightful mountain cottage with long-range views! 3BR/2BA/Garage/Workshop. $249,900 http://www.gaelpaschall.com/DispListing.asp?ListingID=155935&AdminID=276&PropertyType=A&BuyerID= |
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LUXURY LOG ESTATE HOME! Stunning Views in Upscale Gated Community! Priced to sell! 3BR/3BA. $765,000. http://gaelpaschall.com/DispListing.asp?ListingID=159828&AdminID=276&PropertyType=A&BuyerID= |
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GOLF VILLA VACATION RENTAL! Country Club Condo Overlooking the 18th Fairway at Cummings Cove. $2,400/MO. Sleeps 6. http://www.gaelpaschall.com/DispListing.asp?ListingID=11165&AdminID=276&PropertyType=A&BuyerID= |
Articles and Advice |
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| Sellers face new dilemma in timing the market By Dian Hymer Some sellers have been biding their time for three years and now wonder if they should continue to wait or bite the bullet and sell now. Karl Case, co-creator of the widely followed S&P/Case-Shiller Home Price index, thinks there's a 50-50 chance that we're at the bottom of the market and that we'll see improvements in the months ahead. Unemployment remains a concern. An increase in the number of new households is predicated on an increase in jobs. Even if we have seen the worst of the recession, most analysts believe the housing recovery could be rocky for years. A quick turnaround is probably not on the horizon. The home-sale market is generally better this year than it was last year at this time. Interest rates are lower by about 1 percent. Mortgages are much more readily available. Home prices have dropped significantly, making it possible for buyers to afford to buy a long-term home. An increasing number of fence-sitters have turned into motivated buyers. However, they are focused on value, condition and location; they aren't overpaying, as they did in 2006. It's still a buyer's market and could remain so for some time to come. Sellers who purchased within the last five years might need to sell for less than they paid. One couple bought a home in Crocker Highlands, a coveted Oakland, Calif., neighborhood. They paid just over $1.1 million in 2005 and made improvements to the property. They sold in 2009, after investing more to prepare the property for sale. They received multiple offers, over the list price. The home sold for $905,000. These sellers weren't happy about the loss. But, their goal was to own only one home. They bought a retirement home near Sacramento and were spending most of their time there. Holding onto the Oakland home was a financial drain, particularly since they were there only part time. They couldn't rent the property out for enough to cover the ownership costs. Another homeowner realized before the recent economic downturn that she couldn't afford to continue to make hefty mortgage payments due to a drop in her income. Emotionally attached to her home that she'd improved over time, she decided not to sell then, which would have resulted in a profit. Instead, she rented the property for a few years and moved in with a friend to lower her overhead. Although the rent reduced her monthly debt load, it didn't cover the carrying costs. When she finally sold in January 2010, prices had dropped to a point that the property sold for less than the amounts of the mortgages secured against the property. To get lender approval on a short sale, the seller had to contribute cash at closing. Clearly, she would have been better off financially if she had sold years earlier. HOUSE HUNTING TIP: Deciding whether to sell now and take advantage of an improved home-sale market or wait for a better time is complicated. First, you need to know the approximate selling price of your home in this market. How much work needs to be done to get the property ready to sell? Does the house have any defects or deferred maintenance that will impact the sale price or make the property harder to sell? If so, this would negatively impact the price. This information can be obtained through your real estate agent. THE CLOSING: Low inventories of good homes in some niche market gives sellers an edge. Even so, you'll be successful in today's market only if you are realistic about the current market value of your home. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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| Protect real estate from Medicaid By Benny Kass DEAR BENNY: Seven years ago, when my mother was 80, my husband and I purchased cooperative apartment shares in a senior complex for her to live in. Since at least one of the tenants had to be over 55, we put her name on the shares, as well as my name. The actual paperwork reads: " 'My Mother's Name' or 'My Name' as joint tenants with right of survivorship and not as tenants in common." If my mother needs to move to assisted living or a nursing home, will Medicaid try to get possession of this apartment? I've called the co-op's attorney, senior law offices here in Reno, Nev., and I've called private attorneys. No one can give me an answer. One office suggested I call the Medicaid office. As much as I would like to, I think that might give Medicaid an opportunity to take what isn't hers. We used equity in our home to purchase this apartment. My mom lives on Social Security and could never afford this apartment. One lawyer suggested the co-op "reconvey" the share back to my name, but their bylaws require that whoever is on the deed live there. Any ideas? Are we safe in keeping this, selling it and keeping the monies, or will Medicaid take it? --Penny DEAR PENNY: This is a complicated question and I am surprised that the senior law offices were unable to assist. There are a number of "elder lawyers" throughout the country, and you can locate them on the Web. I searched "elder lawyers" and found a number of Web sites that should be of assistance to you. Generally, however, Medicaid (which is administered by the state, with each state having its own rules) does not "get possession" of property. But if your mother applies for Medicaid, I assume she will need to disclose her interest in the co-op as an asset. It is possible that the state will take into account the fact that she is not an "equitable" owner of the property (as she did not contribute to the purchase price of the property) and simply disregard the asset. But even if she is considered to be an owner for Medicaid purposes, the state may impose only a lien on the property rather than require it be sold. In fact, if the state considers the co-op interest an asset of your mother, it wouldn't require her to sell it, but could deny her benefits until her assets, including her interest in the house, were spent down to whatever the threshold is in Nevada. Many states allow a number of exceptions. For example, if a disabled family member (or a spouse, which I assume there is none) is living in the property, the Medicaid applicant would qualify for benefits and a lien would be imposed on the applicant's share of the property in the amount of any benefits paid -- but the benefits would need to be reimbursed when the property is sold or the disabled person or spouse dies. This is a highly specialized area of law, and not all attorneys understand the rules or the law. DEAR BENNY: I have a question about escrows for taxes and insurance. Let's say I am buying a home and last year's tax bill was $1,200 (or $100 per month). Can the lender set up escrow collecting $150 per month for taxes? --Nate DEAR NATE: My mathematical skills are limited, but the answer to your question is no. According to the federal Real Estate Settlement Procedures Act (commonly known as RESPA), a lender who collects money in escrow for real estate taxes and insurance can have only a two months' cushion on an annual basis. So, if the bank is collecting $150 per month, annually that comes to $1,800. A two-month cushion allows you to collect only $1,400, or $116.66 per month. But depending on when settlement takes place, the lender does have the right to collect sufficient funds (plus two months extra) to make sure that it can pay the taxes and insurance when they become due. Let's take this example: You settle (go to escrow) on May 15. The tax bill in your jurisdiction must be paid by Sept. 30, 2010, but is applied from January 2010 through December 2010. Because mortgage interest is calculated in arrears, your first payment will due in July. (Note: The lender will charge you interest at closing from May 15 to the end of that month.) By the time the real estate tax bill has to be paid, you will have made three payments in escrow (July, August and September). But the lender needs a full 12-month payment. Accordingly, the lender has the right to charge you -- at closing -- nine months' escrow to collect all the money needed, plus two months' cushion; in other words, the lender can charge you at closing for 11 months' escrow. Here's a consumer protection suggestion: Because too many lenders often do not make the tax or insurance payments on a timely basis -- or in some cases do not make the payments at all -- homeowners should send their lender a demand letter, once a year right after the taxes or insurance payments are due, requesting proof that those payments have, in fact, been made. For those jurisdictions where this information can be found online, you should learn how to access this from your local government's Web site. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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| Smoky Mountain Waterfalls ! Sure to Capture Your Heart ! 
The rivers and springs that begin in the mountains cascade in graceful and noisy torrents, creating waterfalls through-out the Great Smoky Mountains. On a hot day, walk through their sparkling curtains or take a slippery slide down their rocks - or enjoy them any time of the year without ever leaving your car! Bridal Veil Falls Bridal Veil’s water cascades over the road. U.S. 64. Cullasaja Falls Accessible by a hiking trail, Cullasaja’s 250 feet of water is visible from U.S. 64 Dry Falls Walk underneath this 75-foot cascade. U.S. 64. Looking Glass Falls The 85-foot falls are visible from the road. U.S. 276. Sliding Rock Take a glide down this natural water slide. U.S. 276. Toxaway Falls U.S. 64 passes right over the 125-foot falls. Whitewater Falls At 411 feet, Whitewater is the highest cascade in the eastern United States. U.S. 64. |
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| Hot Links |
| VISIT OUR WEBSITE ! http://www.gaelpaschall.com VACATION RENTAL: ELEGANT COUNTRY CLUB GOLF VILLA!! http://www.gaelpaschall.com/DispListing.asp?ListingID=11165&AdminID=276&PropertyType=A&BuyerID= Current Mortgage Rates http://www.bankrate.com/brm/rate/mtg_home.asp What Mortgage Rates Did Today http://www.interest.com/content/trends/news.asp PLEASE READ: Working with Real Estate Agents http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html |
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