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| The Ozur Group's Monthly Real Estate Update |
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Articles and Advice |
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| Got workbench? By Paul Bianchina Workbenches are one of those staples of the home workshop. They can take any number of forms, from the very basic to the very ornate, and there is no right or wrong way to set one up. The main thing is that the workbench be sturdy and solid, and that it achieves what you need it to achieve. BUILT-IN WORKBENCHES A built-in workbench is a simple thing to construct. First, you want to give some thought to where it will go, what purpose it will serve, and how large it needs to be. For most people, the home workbench takes the form of a basic platform that is attached to the wall in the garage or basement, or sometimes in an interior room such as a hobby room, bonus room, or even a larger utility room. Consider what you'll be doing on the workbench. Is it just a flat spot for the occasional repair project, or will it serve a specific purpose such as woodworking or auto repair? Will a small area in a corner work, or do you need a long or wide spot with lots of access for working on larger projects? Will the bench accommodate a couple of basic tools, or do you need lots of tool and supply storage? Working as much of this out early on will help you plan for a workbench that really suits your needs. The easiest bench to build is one that attaches to the wall on one, two or even three sides, depending on where it will be located. Construct a sturdy frame of dry, straight 2x4 or 2x6 lumber attached directly to the wall studs with screws or lag bolts, add one or more 4x4 legs between the bench and the floor in front, and then add a 3/4-inch plywood top. Place the bench anywhere from 30 inches (normal table height) to 36 inches (normal kitchen counter height) or more off the floor, depending on your height and the types of projects you'll be working on. Length and depth can be any dimension you want, but if you limit the length to 8 feet and the depth to 2 feet, you can cut the top from a half sheet of plywood. For extra stability and storage space, add a second 2x4 frame and a plywood shelf about 6 to 12 inches off the floor, utilizing the other half sheet of plywood. Some home centers and woodworking catalogs also offer steel leg sets and metal brackets that make bench construction even easier. The entire project takes only a couple of hours, and the result will be a sturdy bench that will last for years. To increase the workbench's lifespan and usefulness, add a second top over the first one. If you do a lot of woodworking, painting, and other projects that scar or splatter the top, use a piece of 1/4-inch tempered hardboard that is screwed in place over the plywood top. Tempered hardboard is smooth, easy to clean, and inexpensive, and when it gets beat up you can simply unscrew it and replace it with a fresh sheet. If you do a lot of auto repair, consider having a local sheet metal shop make you up a secondary top out of galvanized sheet metal or stainless steel with rolled or bent edges that covers both the top and the exposed edges of the plywood. This creates a tough, wipe-clean surface that's impervious to the oil, grease, solvent and other materials commonly used with auto repair. To complete the installation, check out the selection at your local home center or hardware store. A sheet of pegboard and some hooks, one or two add-on drawers or bin units, and maybe a simple upper cabinet or two and you've got a clean, organized, and highly useful work center for just about any project you're likely to encounter. FREESTANDING WORKBENCHES If you do a lot of woodworking, hobbies or smaller home repair projects, you might also consider a freestanding workbench. Freestanding workbenches, which typically range in size from about 18 inches by 60 inches to 24 inches by 96 inches and can weigh in at a hefty 300 pounds or more, are designed to be set up in a shop or garage in an area where there is access to the bench on all four sides. Most freestanding workbenches are made of wood, utilizing hardwoods such as beech and maple, and some are absolute works of art costing thousands of dollars. The typical freestanding workbench has a thick, laminated wood top that is smooth and rock solid, and includes one or two woodworking vises mounted on the side and end. Some have built-in tool trays, drawers and shelves, and there are often other accessories that further increase the bench's usefulness. If a dedicated woodworking-style workbench appeals to you but the price doesn't, there are several books and plan sets on the market that show how to build one of your own. You can also purchase just the laminated maple top, make your own legs, then add on the necessary bench vises and other accessories as need and budget permits. Three good sources of workbenches and workbench parts are Lee Valley, (800) 871-8158, www.leevalley.com; Rockler, (800) 279-4441, www.rockler.com; and Woodcraft, (800) 225-1153, www.woodcraft.com. |
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| Eight ways to conserve water this summer By Michelle D. Alderson In February of this year, the Governor of California declared a state emergency due to drought. “ …California faces its third consecutive year of drought and we must prepare for the worst,” Governor Arnold Schwarzenegger said. As of this writing, the state has not issued a mandatory water rationing order, but asks that the residents of California participate in a voluntary reduction. With the summer months ahead, the drought is even more cause for concern. Lawns and gardens will be watered more often, more cars will be washed; essentially the hose will replace the rain. By adjusting their lifestyle a bit, homeowners can reduce water waste -- and save a buck on the monthly water bill. Here’s how: 1. “Plant” Synthetic Grass If you are thinking about planting a new lawn this year, know that AstroTurf is back. This is not the same kind of artificial turf you think of when you reminisce about the Brady Bunch’s backyard. Synthetic grass actually looks like grass, and it does not need a drop of water to maintain its lush green color. An additional bonus is that you’ll never have to mow the lawn again. 2. Water Efficiently Residential properties are regularly overwatered by 30 to 40 percent (http://www.stopwaste.org). Learn how to water your lawn efficiently and at the correct time of day. For example, watering your lawn either in the late evening or early morning reduces evaporation. 3. Go to a Car Wash Using a running hose to wash a car uses up to 150 gallons of water. Most car washes use about five to 10 gallons of water per car (http://www.epa.gov/). In addition, the water used to wash a car in a driveway goes from the street gutter straight to bay or rivers without being treated. Car washes must treat their water before it enters the water system. Many car washes also recycle graywater, keeping the environment clean and conserving at the same time. 4. Use a Broom Running a garden hose can waste up to 10 gallons per minute (http://conserve.sfwater.org) and is unnecessary when cleaning a driveway or sidewalk. The water from a garden hose also contributes to the pollutant waters already abundant in sewer systems. 5. Check for Leaking Sprinklers and Hoses A leaky faucet can waste 100 gallons a day (http://www.sscwd.org/), which includes outdoor systems. Check for and replace leaking hoses or sprinklers. Place automatic water shut-off nozzles on any hoses. 6. Keep a Rain Collection Barrel During a 1-inch rain, 625 gallons of water can be collected from 1,000 square feet of roof (http://www.stopwaste.org). Rainwater can be channeled through gutters and downspouts to a storage unit, which can then be used to water lawns and gardens. 7. Plant Mulch Planting a layer of mulch around trees and plants, such as chunks of bark, peat moss or gravel slows down evaporation. By doing so, 750 to 1,500 gallons of water can be saved a month (http://www.mwdh2o.com/). 8. Grow Native Plants As defined by the Environmental Protection Agency (EPA), native plants, also called indigenous plants, are plants that have evolved over thousands of years in a particular region. Native plants are drought-resistant, require fewer pesticides than lawns (another plus for the environment), and require less water to maintain their natural beauty. If you want to find more ways to conserve water both inside and outside, check out this non-profit Web site: http://www.h2ouse.org/tour/index.cfm. It’s geared for homeowners to research room by room in their home for better ways to conserve water. To read about the drought in California, visit the state government’s website http://www.saveourh2o.org/ for more information. |
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| Going solar: Is it right for your home? By Michelle D. Alderson Just a short time ago, saving the planet took precedence over saving a dollar. Times have changed, but in today’s economy homeowners are still trying to find ways to do both. Just ask John Shipman, an energy analyst at Energy Efficiency Management (http://www.energyefficiencypro.com/) and a green home performance contractor with Energy Star (http://www.energystar.gov). Shipman states that his company’s "whole-house energy audits have increased three folds" since President Obama has taken office. The President’s stimulus package has made energy conservation a priority with initiatives that focus on energy-efficiency upgrades to homes and businesses. One of the most hyped government energy-conservation initiatives is the use of solar energy. In fact, the stimulus package was signed after the President visited the Denver Museum of Nature & Science, which boasts 465 solar panels on its rooftop. The federal government’s stimulus package helps with the cost to install solar panels on existing homes, with the hope that this cost savings will help stimulate energy conservation and boost employment in the industry. With the new stimulus package, homeowners will receive a federal tax credit of 30 percent off the total cost of installing solar panels on their homes. According to the Energy Star Web site, the tax credit is also good for geothermal heat pumps, solar water heaters, small wind energy systems, and fuel cells. This federal tax credit is in addition to any tax credits or discounts a homeowner might receive from the state. Each state has its own rebate programs, including California. If a homeowner in California wants to install solar panels, a good place to start is by checking out the website created by the California's Public Utilities Commission and Energy Commission. The California Solar Initiative Web site (http://www.gosolarcalifornia.org) "provides consumers a 'one-stop shop' for information on rebates, tax credits, and incentives for solar energy systems in California." In a nutshell, existing homeowners that choose to install solar panels would receive an up-front rebate from the state government. The rebate would be "based on expected performance, and calculated by equipment ratings and installation factors (geographic location, tilt and shading)." What does that mean to the average homeowner? If you live in the Pacific Gas and Electric Co. (http://www.pge.com/myhome/saveenergymoney/solarenergy/) area, for example, the state rebate would be $1.55 per watt for existing homeowners (you can check out your local electric company’s Web site for their cost savings). According to Vote Solar (http://www.votesolar.org), a non-profit initiative, "a typical home solar system generates about 3 kilowatts of power." The installation cost in California averages roughly $8.10 per watt. The state rebate is currently $1.55 per watt for homeowners in Pacific Gas and Electric Co. territory. Therefore, the average state rebate is worth $4,650, in addition to the 30 percent cost savings from the federal government. That means the original estimated cost would be around $24,000, but after the rebates a homeowner could pay under $14,000. Shipman thinks homeowners need to go one step further before going solar. "Solar is a fantastic renewable energy and there are a lot of advantages to it, however you need to do the basics before you put solar panels on a house. It’s like cooking the turkey with the oven half open." What he and others in the industry believe is the first step to energy conservation in existing homes is to consider the "whole house approach." For instance, installing energy-efficient windows is just one of the many ways a house can conserve energy before going solar. The effort to save money and the planet by a well-intentioned and discounted solar installation can be thwarted by old windows that leak heat and cool air. If any homeowner is thinking about installing solar panels or doing any type of energy-efficiency upgrades, it is important to do the homework. There are several companies, both profit and non-profit that can do a home evaluation, as well as Web sites that discuss solar installation. For more information, visit the CALIFORNIA ASSOCIATION OF REALTORS® Green Web Site (http://green.car.org/). |
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| Multiple offers making a comeback By Dian Hymer In the current home sale market, it might seem ludicrous to make an offer on a listing if it means competing with another buyer. However, multiple offers are on the rise in some markets. But, it doesn't always mean that you need to pay a lot more than the asking price. Sellers are ever hopeful of receiving multiple offers. These days, this is usually an unrealistic expectation. That is, unless the listing is a prime property in a high-demand neighborhood where few homes are being offered for sale. Price is a critical part of the equation. Some sellers price their homes low because they need a quick sale. If the price is below market, multiple buyers could step forward with offers. Sometimes an overpriced listing is reduced to market price or below and results in offers from more than one buyer. Most multiple offers today are on low-end foreclosure properties. Investors make up a large part of the buyers in this segment of the market. In some areas of California and Florida, prices have fallen 40 percent since the market peaked in 2006. HOUSE HUNTING TIP: Don't shy away from making an offer just because there is more than one offer. In some cases, a dozen or more buyers make offers on foreclosure properties that are listed at bargain prices. But, the highest bidder is not always the winner. Even in non-distressed-sale situations, multiple offers in today's market don't always result in an overinflated sale price. For instance, a charming older home on a sought-after street in the Crocker Highlands neighborhood of Oakland, Calif., sold after only two weeks on the market with multiple offers. The property was listed for $1.3 million, and sold for $5,000 above that price. There are far fewer financially qualified buyers in the home-buying market today than there were two years ago due to credit tightening, more rigorous financial qualification requirements and recent stock market losses. In some areas, as many as one-third of home sale transactions fail to close, often due to the inability of buyers to obtain the financing they need. Sellers who receive more than one offer should carefully consider all aspects of the offers, not merely the offer price. An offer from an all-cash buyer who doesn't need a mortgage to finance the purchase, and who can close quickly, should be taken seriously even if the price is lower than the other offer(s). However, some all-cash buyers -- who are fully aware of their strong position in this market -- feel they are entitled to a major price discount. Whether or not you'll have success countering for a higher price will depend a lot on the profile of the buyer. Buyers who intend to occupy the property for the long term are more likely to pay more than will investors who base their purchase decisions on the numbers, not their emotions. THE CLOSING: Sellers should try to keep greed out of their decision when faced with multiple offers. Today's buyers are willing to walk away from a negotiation rather than pay over market value, or it they think the sellers are unreasonable. Dian Hymer is a nationally syndicated real estate columnist and author. |
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| The art of counteroffers By Dian Hymer Negotiation is back in style. It's not uncommon for buyers and sellers to have many rounds of counteroffering back and forth before they arrive at a contract that is completely agreeable to all involved. When this is accomplished, the contract is ratified. However, there is another important element involved in ratifying a contract. Until a residential purchase contract is completely signed, and the final signed documents are delivered back to the other party or that party's agent, the listing is not sold. Let's say you decide to offer the sellers less than their asking price. They don't accept your offer, but issue a counteroffer. Before you respond to the seller's counteroffer, another buyer makes an offer. If you haven't signed the sellers' final counteroffer and delivered it back to them, they can withdraw their counter and sell the house to someone else. Or they could decide to withdraw the counteroffer to you and issue a new one. This time it could be a multiple counteroffer if the sellers also decide to counter the other buyer's offer. You end up in a multiple-offer competition, which often means paying more or not getting the house at all. You can't rely on verbal negotiations when you're buying or selling real estate. To be binding on the parties involved, real estate contracts and the addenda to them must be written. HOUSE HUNTING TIP: Timing is critical. If the seller issues you a counteroffer you can live with and you want the house, sign the document as soon as possible, even if the seller gives you several days to think about it. During that time, another buyer could make an offer and your counteroffer could be withdrawn. After you sign the counteroffer, make sure that your agent delivers it to the sellers or their agent immediately. Whoever receives the document should sign to acknowledge receipt of the document so that there's no question that the contract is ratified. Then if another buyer wants to make an offer, you won't have to compete or risk losing the house altogether. Once you have a ratified contract in place, the sellers can negotiate with other buyers, but only for backup position subject to the collapse of your contract. Don't let yourself be lulled into thinking that because the housing market is generally slow there's no chance you'll end up in competition. The best listings -- ones in good condition and priced right for the market -- can sell quickly, particularly in areas where the inventory is low. Many buyers have busy work or travel schedules. Often you find the right house to buy at the least opportune time in terms of what else might be going on in your life. Make sure that your home purchase contract states that faxed signatures are binding. This could save you hours of driving in traffic to sign a critical document in time. Sometimes faxes aren't the answer. If you'll be available only by phone or e-mail, consider giving power of attorney -- one specific to buying a house in a certain area -- to someone whom you trust completely. This person should not be your real estate agent. It should be someone who will be available on short notice. Electronic signatures are becoming more popular. But, they haven't become standard in the home-sale business. If a seller who has had no experience with electronic signatures is considering a couple of offers -- one with electronic signatures and one that was signed in person -- he would probably feel more comfortable accepting the latter. THE CLOSING: That is, unless the price on the electronically signed offer is a lot higher. |
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| Dos and don'ts of home selling By Dian Hymer An energetic real estate agent can have your home on the market in a day. However, to provide the kind of marketing exposure you need to sell in today's market takes a little longer, unless your home is photo-ready when you list. Ideally, you should start planning for your home sale months before you want your home to be on the market. First, find an agent to represent you. Then, create a game plan together for the premarketing phase of the process. Use your agent as a resource. Walk through your home with your agent to get feedback on work, decluttering, and rearranging that needs to be done before the house is photographed for advertising and shown to prospective buyers. If your agent doesn't have a good eye for design, ask for a recommendation of a staging decorator. HOUSE HUNTING TIP: Preferably, your home should not be submitted to the multiple listing service (MLS) or home-sale Internet sites without photos. Studies have shown that many buyers don't consider a listing that doesn't have photos. Some sellers have presale inspections done to find out if repairs should be made before the property goes on the market. This wasn't as important several years ago when buyers were enthusiastic about the prospect of making money in the residential real estate market. Now buyers are much more cautious, and property condition is a critical variable. One seller did a beautiful job fixing up her house for sale. She ordered a termite report and had some of the work done. But she didn't hire a home inspector to inspect the house. The interior was top-notch. In fact, more money was spent on this than was necessary. The listing agent was hired after the work had been done so the seller didn't benefit from the agent's advice about how much to spend and on what. The house sold with multiple offers. However, the buyer's home inspection report revealed that the house needed a new foundation. Fortunately, there was a backup buyer. But, the price was negotiated down significantly. In hindsight, it would have been better to have fixed the foundation and done a less expensive redo of the interior. A couple sold a similar home. They worked with their agent for months before the house was marketed. They did presale inspections and got estimates for painting, staging, furnace replacement, making necessary structural modifications and fixing miscellaneous defects referenced in the termite report. Then, they prioritized, with input from their agent, and had the most critical repairs and enhancements done before the listing hit the MLS. There was no renegotiation necessary with the buyers after they completed their inspections. Make sure buyers receive copies of proposals and paid invoices for work you did to your home so they know which items in your presale inspection reports have been repaired. Another couple, who plan to move in a few years, decided to get their home ready to sell now. They put in a new master bathroom, refinished floors and plan to replace a dry-rotted deck. They will enjoy the improvements for the remaining years they stay in the house. Most sellers wait until the last minute to get their house ready for sale. It can be very stressful trying to get all the work done in a short time frame. Doing work gradually over time is a saner approach. Sadly, most homes never look as good as they do when they're sold. THE CLOSING: Now is a good time to have work done. A lot of contractors are looking for work. You might receive more competitive bids and be able to have the work done when you want. Dian Hymer is a nationally syndicated real estate columnist |
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| Water conservation tips By Amy Westervelt It seems you can hardly open a newspaper these days without reading the headline "Water is the new oil." But what does that mean exactly? In fact, water shortages may cause more severe problems than oil shortages: our lives literally depend on water, plus there are several alternatives to fuel but none really to water. We can technically "make" more water through techniques like rainwater catchment and desalination, but few individual homeowners have their own catchment tanks and even fewer are likely to rig up their own desalination plant. Even if such things were easy, it would still behoove us all to reduce our water usage first, not only because water is scarce, but also because we could all stand to shave a few dollars off our water bills. With that in mind we compiled the following tips to help you do exactly that. In the Shower Install water-saving shower heads or flow restrictors. Readily available at any hardware or home store, low-flow shower heads deliver 2.5 gallons of water per minute while traditional shower heads use 5 to 7 gallon per minute. Take a Shorter Shower. You don't have to be a hero, just shave off a couple of minutes. According to the EPA, even a one or two minute reduction in shower time can save up to 700 gallons per month. Use the Cold Water. If your shower takes awhile to warm up, catch the cold water in a bucket and use it on your lawn or in the garden. In the Bathroom High Efficiency Toilets. If your toilet is from 1992 or earlier, you probably have an inefficient model that uses between 3.5 to 7 gallons per flush. New and improved high-efficiency models use less than 1.5 gallons per flush - that's 60 to 80 percent less than their less efficient counterparts. According to the EPA, over the course of 10 years, one high-efficiency toilet can save a family of four roughly $1,000 without compromising performance. Displace Water. Here's an old-fashioned trick: Put a plastic bottle or bag weighted with pebbles and filled with water into your toilet tank. Displacing water in this manner allows you to use less water with each flush, saving between 5 and 10 gallons per day. Check for Leaks. To check your toilet for leaks, put dye tablets or food coloring into the tank. If color appears in the bowl without flushing, there's a leak that should be repaired. To check showers and faucets for leaks, read your water meter before and after a two-hour period during which no water is being used. If the meter does not read exactly the same, you probably have a leak. Fixing a leaky toilet saves up to 400 gallons of water per month, while fixing a leaky faucet can save up to 225 gallons per month. Brush and Shave Efficiently. Turn off the water while brushing your teeth or shaving. Fill the bottom of the sink with a few inches of water to rinse your razor. Turning off the water while brushing and shaving saves six gallons of water a day. In the Yard Timing Is Everything. Sprinklers running when it's raining? Not cool. Put your irrigation system on a weather-based schedule. If you set it to water in the early morning, that's even better. Using weather-based irrigation scheduling on a moderate-sized yard can save up to 37 gallons of water per day Maintenance. Make sure a leaky sprinkler head isn't costing you dollars and gallons. Go Native. Use native plants in your landscaping that are adapted to the local weather, and you won't have to water them as much (if at all). Native plants in the yard can reduce residential water use by 20 to 50 percent. |
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| Roller covers key to great paint job By Paul Bianchina Painting is certainly one of the perennial favorite projects for do-it-yourselfers. You can transform a room in just a short time, and perhaps best of all, you need only a few basic tools. In addition to a good paint brush, a quality roller cover is one of the essentials. And as with brushes, professional-quality equipment costs only a few dollars more than the low-end stuff, and the difference in ease of use and the quality of the finished product makes the small additional expense well worth it! ROLLER COVERS A roller cover is basically a long, hollow tube covered with fabric, foam or other material. It fits over the cage on the roller frame, and is what actually holds and applies the paint. There is a huge selection of roller covers available, but you need only a couple of them and they are interchangeable on the roller frame, so you can mix and match the covers to suit just about any painting situation. There are several different types of fabrics and other materials that are used to make roller covers, and choosing the right one can sometimes be a little confusing. Which type you select is dependent on the type of paint or other finish you're applying, the type of surface you're painting, and the type of finish you want to achieve (for example, smooth or textured). Synthetic Fabrics: Many roller covers are covered with fabrics that are made from a blend of synthetic fibers. Often, these are proprietary blends developed by specific manufacturers to meet specific painting needs, so follow what that particular manufacturer lists as being acceptable uses for any given roller cover. In general, synthetic fabric covers are suitable for most types of latex and oil-based paints, making them good all-purpose covers. They are typically not rated for use with such coatings as polyurethane and epoxy. Lamb's Wool and Lamb's Wool Blends: Lamb's wool covers are generally softer and more dense than synthetic fabric covers, so they hold more paint with less spatter. They tend to roll out the paint a little faster and smoother as well, creating a very uniform finish. The 100 percent natural lamb's wool covers are typically suitable for all paints, including latex, but they actually work best with oil-based products. There are also lamb's wool and synthetic fiber blends, which take some of the best characteristics of each material and are better suited for use with water-based products. Mohair and Mohair Blends: Mohair covers are very good on smooth surfaces, such as interior and exterior wood and metal doors. They have virtually no shedding problems, and leave a very nice, texture-free finish. The 100 percent mohair covers are intended for use with oil-based paints, epoxies, varnishes and urethanes. There are also some mohair/synthetic blends that will work with latex paints. Because they are intended for smooth surfaces, you will find mohair covers only in short naps. Foam and Slit-Foam Covers: Roller covers made from 1/4-inch foam are generally best suited for smooth surfaces and the application of enamel, varnish and similar materials. They leave no lint behind and also do not impart any texture to the material being applied, and the fact that they don't hold much material helps keep you from overcoating the surface. Longer, slit-foam rollers are great for painting uneven surfaces such as masonry and stucco, and they are definitely the best choice for painting acoustic ("popcorn") ceilings. They can be used with all types of paints, including latex. Specialty Covers: There are also a number of roller covers that are manufactured to accomplish very specific tasks. Stipple: "Stippling" is a form of texture painting, in which the paint is rolled on so that it produces small bumps as opposed to going on completely smooth. This is accomplished through the use of specialty stipple roller covers that utilize a twisted fabric similar to low-nap carpet. They can be used with most kinds of paints, but are typically most effective when used with thicker texture paints. These covers also work well for applying anti-skid paints. Texture: With the popularity of faux finishes, there are now a number of roller covers on the market that utilize a covering of looped or twisted plastic to apply paint while leaving a very distinct texture. They are designed for use with thicker texture paints, and also work well for applying certain types of masonry sealers on medium to coarse aggregate surfaces. Epoxy: These are special plastic or fabric-blend covers that are intended for use with difficult to apply coatings such as epoxy and urethane. Coatings such as these are sticky, and specialty epoxy roller covers allow the coatings to release more quickly from the fabric for smoother application. NAP LENGTH The nap length refers to how long the fibers on the roller cover are. Naps range in length from 1/8 inch to 1 1/4 inches, and regardless of what type of fabric you are using, there are two simple rules of thumb to remember when selecting a nap length: Shorter naps hold less paint and leave less texture on the surface, while longer naps hold more paint and leave more texture behind. The smoother the surface you're painting, the shorter the nap should be; the rougher the surface, the longer the nap should be. |
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| Unpaid HOA fees boost foreclosure risk By Benny Kass DEAR BENNY: I am three months behind in my homeowner's association payments. Can the condominium foreclose on my unit? My mortgage payments are up to date, and I called my lender who said no, they cannot foreclose. What do you say? I wrote a letter to the board asking for a payment plan in January of this year, but no response as of yet. I know I owe the money, but I was sick for a period of time. I am planning to pay the back fees with my taxes. --P.S. DEAR P.S.: Your lender is wrong. Review your legal documents carefully and you will see that the board has a number of remedies if an owner is delinquent in his/her condominium fees. The board can bring a lawsuit for collection; in many cases can restrict access to common areas, such as exercise rooms or swimming pools; and can ultimately, unless your state legislature has enacted restrictions, foreclose on your unit. I am surprised that your board has ignored your request for a payment plan. Such a plan makes sense -- especially in today's economic situation. What does the board want to do: foreclose and then possibly be stuck with your unit if no one buys at the sale? I suggest you keep pressing the board for a decision. DEAR BENNY: After 25 years, I'm tired of being a landlord and was thinking of selling my rental house and carrying back the loan. Where can I get more information on what's involved? –Gina DEAR GINA: When you sell property and take back financing, you are no different from any other commercial lender. You want to be as sure as possible that your buyer is financially able to make the monthly payments (which include principal, interest, taxes and insurance -- which we call "PITI"), and you also want to make sure that the loan is properly secured with the house as collateral. This means that you record the mortgage document among the land records where the property is located. There is a lot of information on the Internet -- just type in "seller take back financing" at your favorite search engine. However, as helpful as the Internet will be, you will need specific assistance. Your buyer/borrower will have to sign a promissory note, and a deed of trust (called a mortgage in some parts of the country). Don't rely on the buyer's attorney or title (escrow) company to assist you. Retain your own attorney to draw up all of the necessary papers and to help you determine if your potential buyer is a good candidate for a seller take-back loan. DEAR BENNY: My friends have a home they are allowing their daughter to live in rent-free. We were discussing selling the home, which they moved out of three years ago. Since they have gone past the three-year period, what is their capital gain amount or tax liability on this home? Is the entire amount that they sell it for taxable? Or does the IRS still deduct the amount paid for the property and call that part untaxable? –Patti DEAR PATTI: If I understand your question, your friends moved out of their principal residence three years ago, and now want to sell it to their daughter. Since there is a time limit on their right to exclude up to $500,000 of their gain if they are married and file a joint income tax return (or up to $250,000 for single filers), what are their tax consequences? In order to take advantage of the exclusion of gain, you have to own and live in the house for two years out of the five years before the property is sold. The two years do not have to be continuous; you just have to be able to prove that you did live in the house for a total of two years. If you fail to meet what is known as the "ownership and use" test, you have to pay capital gains tax. The tax is based only on the profit you made. Example: You bought the property for $200,000, made no improvements, and sold it for $300,000. Although you can deduct such items as closing costs and real estate commissions in determining profit, for this example you have made $100,000 and will have to pay capital gains tax. The current rate for this federal tax is 15 percent. You may also have to pay state and local income tax. Here's a suggestion, however. If the daughter was living rent-free, it could be argued that this is an extension of the family and thus your friends may be able to tack on the daughter's use so as to permit the family to claim the exemption. I cannot provide specific legal advice and recommend that the family consult a tax attorney or accountant for more information. Clearly, any legal way that one can avoid having to pay taxes is acceptable to the IRS. DEAR BENNY: I have an odd situation regarding the residence that I am currently leasing. I entered into a one-year lease with a very affluent couple. A few months later, the couple disappeared. More investigation on my part concluded that the husband was an owner of an investment fund and disappeared once the banking industry went awry. Millions of dollars of investors' money allegedly disappeared with the husband CEO. The wife kept in touch with me and I worked out an agreement with her, whereby she would transfer the deed over to me for a lump sum amount and I would continue payments on the home, until I am able to obtain a new loan or work out an assumption with the bank. She agreed, we noted everything in writing, and we're living in the home with our names on the deed but the mortgage in the owner's name. What will the bank do when they find out that the owners transferred ownership? Is there anything we can do to make sure that our rights as a bona fide purchaser are protected? –Charmaine DEAR CHARMAINE: Wow! Another fraudulent financier. When will this madness and corruption stop? My first question is whether you really own the house. If the house originally was in the name of the husband and wife, and the missing husband did not sign the deed, you do not own the property. You must immediately retain a real estate attorney in your area to investigate. If you do own the house, are you in a financial position where you can refinance and get a mortgage loan in your name -- and pay off the old loan? Interest rates are very low now, so you should seriously explore that option. Alternatively, come clean with the bank that holds the mortgage and I suspect that they will work with you. But, the first question must be answered immediately: Do you really own the property? DEAR BENNY: Condominium owners don't realize until it's too late that they are at the mercy of their boards. What can the community do when the board doesn't follow the bylaws and rules and regulations? –Del DEAR DEL: That's a tough question. There are times when a board has to make value judgments as to whether they should follow the legal documents -- even though they realize they are legally obligated to do so. One example that is very current deals with rentals of condominium units. Many association bylaws put restrictions on renting -- such as either no rentals allowed or only a certain percentage of units can be rented at any one time. However, in today's economy, many owners who must leave the area for whatever reason find that they are unable to sell and must rent -- despite the fact that the quota spelled out in the bylaws has been met. What should a board do in this case? Obviously, the first choice is to try to amend the legal documents. But that's not always easy. More importantly, when the economy gets better, the association wants the leasing restrictions to remain in place. I have told my condominium clients that the board should hold a public meeting, and advise the owners that based on the circumstances, and despite the clear language in the bylaws, the board will just not enforce the leasing restrictions for the foreseeable future. If the members do not object, then the board can "close their eyes" to the violation. But if there are objections, the board would have to consider whether the costs involved in litigation are a worthwhile expenditure, and they still may opt not to enforce. Don't get me wrong. I am not advocating that boards have the right to ignore the clear dictates in the legal documents. In general, they do not have this right. What should owners do if their board is ignoring the rules? I tell everyone that they have the following options: (1) initiate a recall proceeding, so as to try to "throw the rascals" out of office (the bylaws should spell out the legal requirements for this process); (2) run for the board and try to change the system; (3) a number of unit owners should retain a lawyer who can file suit to force the board to comply with the documents; (4) accept the situation and live with it; or (5) move out of the community. 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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| Homeowner's insurance hang-ups By Dian Hymer After paying out huge settlements to clean up mold damage, homeowner insurers pulled back from issuing new policies on homes where a water damage claim had been made within the last five years. They also minimized their exposure to mold claims by excluding mold coverage altogether or limiting their coverage. Currently a common cap on such claims is $5,000, although this can vary from one company to the next. Some insurers are less concerned about water damage claims today. However, they are concerned about the profile of the insured. Homeowner insurers want to insure people who don't have a history of making claims. Some companies won't write a new insurance policy for someone who made a claim within the last three years. Insurer guidelines for coverage vary from company to company. And, individual companies' policies change over time depending on their loss history and the marketplace. Some homeowner's insurance companies may cease writing policies altogether for new customers in certain states or in specific areas within states. However, those companies may write new policies for current policyholders. If your house is insured with one of the companies that is not writing new policies, and you sell it and buy another home in the area, that company may write a homeowner's policy for you on your next home as long as the house meets certain criteria, for example. HOUSE HUNTING TIP: More and more homeowners are selling first and renting for a time before buying their next home. In this case, if the homeowner is insured with a company that isn't writing new business in your state, it would be prudent to carry renter's insurance through this company. The company would then be likely to cover your next home because you have been a continuous client. For this strategy to work there can't be a break in coverage. Renters who have never owned a home and who are having trouble finding homeowner's insurance should check with their renter's insurance company. This company will often write a homeowner's policy for an existing renter's insurance customer. If you made a claim within the last three years with your existing company and you buy another house, that company will probably insure you on the new home as long as coverage is continuous. However, if you made two or more claims during the last three years, you could be denied coverage. Or, there might be a surcharge. This is usually determined on a case-by-case basis, with leeway given to long-term customers. Even though you're gold-plated in terms of insurability, an insurer might turn you down because of the property. For example, it can be difficult to insure older homes with some companies. Outdated plumbing, electrical, heating and roof are red flags. Some companies won't insure houses with wood siding in fire-prone areas. There is flexibility with some insurers who will insure a home with older wiring as long as the buyer agrees to upgrade the electrical within a month or so of closing. When you're shopping for homeowner's insurance, make sure to compare like-kind coverage. Some companies will pay only 100 percent of the coverage amount in the case of a total loss. Others will pay 120 to 200 percent of the coverage amount. Find out what's excluded from coverage. With older homes, it's a good idea to pay for a code upgrade rider. This doesn't cost much when you consider what it would cost to upgrade an older home to meet current code requirements in case of a catastrophic loss. THE CLOSING: Because it's risky to make a lot of claims, consider increasing the deductible. This will reduce your annual insurance premiums. Dian Hymer is a nationally syndicated real estate columnist and author. |
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| Facing foreclosure: When must I move out? By Benny Kass DEAR BENNY: I am one of the unfortunate who has to deal with eventual foreclosure. Can you tell me how long I can remain in my home until legally having to vacate? –Constance DEAR CONSTANCE: Before the foreclose takes place, please talk to your lender -- and not just a low-level loan officer but someone high in the company. With all the foreclosures taking place throughout the country, lenders (at least the legitimate ones) do not want yet another foreclosure on their books. If no one buys at the foreclosure sale, the lender will be stuck with the house and will have to pay real estate taxes and insurance. Also, check with your county and state governments. Many governments now have programs to assist borrowers who are in trouble, so you may be able to save your house. How long do you have to stay in the house if it is foreclosed? Technically, you have to move out when the house is sold. But again, talk with your lender. They may be willing to let you stay for a period of time, if you can pay some rent. Lenders do not want houses to be vacant. If the home is scheduled for foreclosure, I would attend that sale. Find out who bought it -- it may be the lender itself if no one bids. Then discuss your situation with the buyer; once again, you may be able to strike a deal with that buyer. To my knowledge, although you have to move out, it has been my experience that many homeowners whose property has been foreclosed upon just stay in the house until eviction proceedings are brought, and then they move out. DEAR BENNY: I live in North Carolina and my neighbor recently planted trees, two of which are on my property. Where do I stand? –Brian DEAR BRIAN: I can't give you advice about North Carolina law because I don't practice law in that state. However, I suggest that you arrange to have a survey made of your property so that you will know exactly where your property line is. If your neighbor's trees are even one inch on your property, I would try to meet with your neighbor and discuss the situation with him or her. Be friendly; perhaps you can invite the neighbor over for coffee. If the trees are on your property, you have the absolute right to demand that they be removed. If you do not object to those trees, then perhaps you can reach an agreement that the neighbor will maintain the trees. And while it may be a very small amount of money, you may want to ask your neighbor to pay the percentage of your real estate tax on which the trees stand on your property. Finally, depending on your own state law, so long as you will not injure anyone or cause any property damage, you should have the right to cut down the trees if they are on your property. DEAR BENNY: I'm a 66-year-old female living in California. I'm divorced and own three homes -- two rentals and one primary residence. I plan to leave my children an equal interest in my real estate holdings upon my demise. I do not have any other investments, savings, IRAs or holdings worth mentioning. I need to generate a living trust, but keep postponing it due to the cost. I ran a search online and saw that one can order the necessary paperwork for the price of $149. I am a REALTOR® (retired) and would be able to obtain prelims on my properties myself. What do you think? Would it be binding? –Marianne DEAR MARIANNE: I cannot recommend that you use what is generally referred to as "off the shelf" legal documents that you can get on the Internet. These documents are general in nature, and may not be specific for your needs. Since you have the ability to assist a lawyer, I am sure that you can negotiate the attorney's fee. But I strongly recommend that you consult a local attorney who understands real estate and living trusts. DEAR BENNY: I presently have a Starker (Section 1031) exchange with my brothers invested in a rental property. We had this set up for about five years. If we sell the whole property, can it be divided into three shares with each one of us owning one share for another exchange? It is hard to work with three owners when we live in different areas of the country. –Marilyn DEAR MARILYN: If the property is in the name of a partnership -- instead of in your three individual names -- then when the property is sold, you either have to pay the appropriate capital gains tax or do another exchange. The new property (called the replacement property) must be in the name of the partnership. If, on the other hand, the property is titled in your individual names, then when it is sold, each of you has the right to enter into another exchange on your own (or pay the tax and keep the balance of one-third of the sales proceeds). If the property is in the name of a partnership, here's a tip: In the year before the property is sold, formally dissolve the partnership and put the property in the name of the three of you. Then, next year, you each have the right to do with your one-third as you so desire. DEAR BENNY: I purchased a townhouse in my brother's name until I resolved my financial difficulties. He already owns several properties. I am not really benefitting from this transaction. My intent is to have him transfer ownership to me this summer. How do I get my name on the deed and the mortgage? –Janet DEAR JANET: Your brother will have to deed the property to you. You and your brother will have to explain the situation with the current mortgage lender. They may be willing to allow you to assume the obligations of that mortgage, and they may also release your brother from his obligations. Much depends on the lender and the kind of loan currently on the house. If it was an ARM (adjustable-rate mortgage), the lender may be willing to cooperate with you. On the other hand, if the existing mortgage contains a lower rate of interest than is currently available, the lender will probably not allow you to take it over. If you have cleared up your credit, and can qualify for a mortgage on your own, then it may all work out alright. If you are unable to qualify, ask your brother if he will guarantee the loan. This may convince the lender to allow the transaction to take place. But your brother should consult a tax accountant to determine any tax consequences he may have when he transfers the property to you. DEAR BENNY: My tenants are divorcing. I received a 30-day notice from the husband. His spouse was not part of the 30-day notice. She would like to continue renting the property. My concern is that she does not have a job, and will be able to afford the rent only from monies received from spousal or child support. Her mother (who lives out of state) has offered to cover the rent if this becomes necessary. What should I do: create a new month-to-month tenancy? Who would be named? What precautions should I take? –Monica DEAR MONICA: I would recommend that you enter into a new lease with both the current tenant and the mother named as the tenants. Make sure that the lease states that the tenants are "jointly and severally" responsible for paying the rent. This means that each tenant is legally obligated to pay the full monthly rent. How long a term should you have? That really depends on you. If you think that the tenant will take good care of the house -- and that with the assistance of her mother, the rent will be paid timely -- then why not consider a year's lease? The mother may be concerned that a month-to-month is too short a period of time. DEAR BENNY: Are title examination and loan origination fees legitimate or just junk fees? –Lee DEAR LEE: There are some consumers who believe that most, if not all, of the lender's charges are "junk" fees, which means that they are not necessary for the settlement (escrow) process, but are primarily used to increase the lender's profits. For years, lenders would charge between $50 and $75 for a credit search. As a result of litigation on this matter -- and the fact that everyone can get a free credit report at least once a year -- lenders now charge a lot less for the credit search. Loan origination fees are, in my opinion, junk fees. But in most cases, if you want to get a loan, you will have to pay this to the lender. You should try to negotiate this fee as well as all other charges when you begin the loan application process. The title examination, on the other hand, is legitimate. The mortgage lender is going to give you a large sum of money and wants to make sure that your house will serve as good collateral to secure the loan. You will sign a deed of trust (the mortgage document), which will be recorded among the land records in the county where the house is located. This document gives the lender the right to foreclose on the house if you cannot make the monthly payments. But if there are other lenders -- or other clouds such as tax liens or mechanic's liens -- on title, the new lender will not have the security that it needs. So a title search must be obtained to satisfy the new lender that it will be in first position against your house. 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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| Cancel impound account? There's a fee By Benny Kass DEAR BENNY: Can you explain how a bank can legally charge a quarter of a point of the loan to opt out of an impound account? We have always paid our property taxes twice a year and always on time and have excellent credit. It feels like extortion to me. –Jerry DEAR JERRY: It may not be legal extortion, but it's close. For years, lenders argued that it was necessary to collect escrows for taxes and insurance (also called "impound accounts") in order to make sure that the real estate taxes and insurance policies would be paid and kept current. This argument persuaded the feds to allow mortgage lenders this right. When Congress enacted the Real Estate Settlement Procedures Act (RESPA) back in the 1970s, it put a limit on the cushion that lenders could take from homeowners. If the lender is covered under RESPA -- i.e. is a federally related or insured lender -- it can not take more than approximately two months of additional escrows per year. Some states also limit the amount of escrows that can be taken by mortgage lenders, and indeed it is my understanding that a few states actually require lenders to pay interest on the moneys they are holding in escrow. But the basic argument that lenders make still remains: We want to make sure that our borrowers keep their real estate taxes and insurance current. So if that's their position, then why will they allow borrowers to pay their own taxes if they pay a little extra interest on their loan? There is only one answer: Lenders use these escrowed accounts to their advantage. They get interest on these funds -- which for many lenders can be a lot of money -- or they use the funds as compensating balances to satisfy regulators' requirements. Many lenders will let you pay your own taxes and insurance and will not demand the escrow or a higher interest rate. My suggestion to my readers: Negotiate hard with your prospective lender and see if they will allow you the right to pay these expenses on your own. After all, no one wants to lose their house at a tax sale. DEAR BENNY: What is your opinion of reverse mortgages? We have a home assessed at $157,000. Our nest egg is being eaten away and I was wondering about the benefits and pitfalls of a reverse mortgage. –Richard DEAR RICHARD: Recently Congress put some restrictions on the costs that lenders can charge for reverse mortgages, so it is too soon to learn the results of that legislation. A reverse mortgage is an interesting concept. You can tap the equity in your home and take out your money in three different ways. You can get a lump sum; you can get monthly or quarterly annuities; or you can use the mortgage as a line of credit, writing checks when you need the money. But there are a number of negatives. While you do not have to pay any money to the lender, the interest will accrue on a monthly basis. That means that over the years, the equity in your home will disappear. When you die or decide to sell, the lender will be paid off in full. Because the lender runs the risk that at that later date, there may not be enough equity to be paid off in full, the charges are higher than if you obtained a conventional mortgage. I suggest you do your homework first. There is a lot of good material on the Internet (just type in "reverse mortgage" at your favorite search engine). I recommend going to the AARP Web site because they are continuously examining these types of loans, and they are not lenders and thus try to be completely objective. DEAR BENNY: Our neighbor has planted some fast-growing bushes on her land, close to the boundary between our lots in order to provide some privacy between our swimming pools. These bushes grow upwards and outwards, overhanging our land, which we do not like. She sometimes has them trimmed back, but they very quickly grow again and, as we do not like to keep asking her to have them trimmed again, we do the work ourselves. She objects to that and suggests that we are not allowed to trim her overhanging bushes. What's the legal position? –Richard DEAR RICHARD: It is my understanding that in all 50 states, homeowners have the absolute right to trim overhanging branches and bushes, and to cut off roots that trespass on your property. Whether you can force your neighbor to trim her own shrubbery depends on your specific state law. You may also have the right to file a lawsuit against your "neighbor" based on a private nuisance theory. You would have to explore this concept with your own attorney. DEAR BENNY: Several years ago we purchased a house, and the seller provided financing. We now plan to refinance the loan with a third party. The seller/lender is named on all of the legal documents (i.e. deed of trust, insurance, etc.). What documents do we need to use to remove the lender's lien position? Do we bring the documents to the county recorder's office? Basically we want to get the official records to indicate there is no longer a lien holder. –Kim DEAR KIM: You have to get a payoff statement from your current lender, and make arrangements with him that you will exchange your check in the amount of the full payoff with a release of your present deed of trust (in some states it is called a mortgage). You should also contact your insurance company and change the name of the "beneficiary" from the current lender to your new one. But let me make a suggestion. Your new lender -- whether it is a private person or a commercial company -- will want its loan to be documented properly. The lender will also require a title search, to assure it that it will be in first place position, with no earlier liens ahead of it. So your best approach is to retain a local real estate attorney who should be able to assist you throughout the entire process. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
| Are home warranties a good deal? By Dian Hymer When something malfunctions in your home, wouldn't it be wonderful if you could pick up the phone, request a service call, pay a nominal service charge and have the problem fixed? In theory, this is how a home protection plan works. A home protection plan--also called a home warranty-is an insurance policy that insures homeowners against defects in the major systems of their home. Precisely what is covered will vary from one company to the next. Most policies cover the heating, plumbing and electrical systems as well as built-in appliances like the stove, dishwasher and garbage disposal. Some companies will cover movable appliances like the refrigerator, washer and dryer for an extra charge. And some policies even include roof coverage-if you pay an additional fee. Policy terms are usually for one year and they are renewable. The annual cost of a policy varies but you might expect to pay about $250 for a moderate-size home. Protection plans are available for both single-family residences and condominiums. The plans are offered in most states. Home protection plans are popular in the home sale industry because they provide a relatively inexpensive way to take care of home defects that develop soon after the home sale closes. For example, let's say the water heater quits working the day after closing. Depending on the terms of the purchase agreement, the seller may be responsible for replacing the water heater. A new hot water heater can cost several hundred dollars. However, if there is a home protection plan in place at closing, the hot water heater will probably be replaced for the nominal cost of a service charge. Home warranty service charges vary but they are often in the range of $30-35 per call. Some sellers offer to pay for a home protection plan to cover the home for the buyer for one year. If problems arise during that year, the buyers simply call the warranty company and pay the service charge. The warranty company pays for the repair or replacement. FIRST-TIME TIP: Be sure to read the policy carefully because there are exclusions from coverage. For example, pre-existing conditions are not usually covered. So if the furnace hasn't worked properly for years, it probably won't be covered by the buyer's home protection plan. Also, there are limitations on coverage. For instance, some policies offer roof coverage, but only up to $1,000 of work. Seller coverage is also available to cover the home during the listing and sale period. Seller coverage works the same as buyer coverage except that there are usually more limitations on the coverage. For example, the furnace is usually covered under both buyer and seller coverage. But, the amount of coverage offered under seller coverage is often less than the amount that's available to the buyer if the furnace breaks down after closing. One seller who had signed up for seller coverage was able to have some of the defects that were discovered during the buyer's inspections fixed by the home protection plan company for the cost of a service charge. This was a great deal for the seller because it saved him money and he didn't have to pay the policy premium until closing. Seller coverage is usually charged by the day. The cost varies, but it can run about 75 to 85 cents a day. THE CLOSING: If the seller of a home you're buying does not offer to pay for a home protection plan, you can pay for one. Be sure to order it before the closing date. Dian Hymer is a nationally syndicated real estate columnist. |
| Appraisals killing deals in many markets By Dian Hymer Finding the right house to buy is never easy; selling a home today is also challenge. It's best to prepare yourself for obstacles that could cross your path so that you're prepared should they arise. In some markets, one in three transactions doesn't close. This is a high ratio compared to the fallout ratio in previous years when the housing market was stronger and financing options were plentiful. In past years, most transactions fell apart over inspection issues. The biggest hitch today is financing, which is not to say that property defects don't come into play. For some time, lenders have tightened up on their qualifying criteria, making it more difficult for buyers to obtain the financing they need to close a sale. Recently, appraisals have become problematic, particularly in low-inventory, higher-priced neighborhoods. There are three components to lender approval. The borrower must be financially qualified. This requires a good credit score, sufficient cash for a down payment and closing costs, as well as verifiable income. The lender also needs to approve a title report on the property to confirm that the seller has marketable title to the property. And, the lender needs an appraisal of the property to confirm that the buyer is not overpaying. Previously, lenders' underwriters required three comparable sales in the area that occurred within the last six months to validate the purchase price. Due to the soft housing market, lenders now want to see comparable sales information on listings that sold and closed within the last three months. The listing inventory in some areas was very low from December 2008 through March 2009, making it difficult for appraisers to come up with enough comparable sales information to satisfy the lenders. To complicate matters, some appraisers and lenders automatically lower the appraised value by a certain amount if the property is in an area that is deemed as a declining market. This can result in an appraised value that is lower than the price the buyer and seller agreed to in the purchase contract. HOUSE HUNTING TIP: The most accurate appraisals are done by appraisers who know the local market well. Unfortunately, changes in the lender's practices are resulting in more appraisals done by appraisers from outside the local area. Many lenders no longer have their own, in-house appraisers; many are relying on large nationwide appraisal services to provide appraisal services. Let's say a listing sold for $1 million, but appraised for only $950,000. One way to resolve the problem is for the buyers and sellers to split the difference. In this case, the sellers lower their price by $25,000 and the buyers put an additional $25,000 cash down. For the cash-strapped, this is not an option. In this case, the sellers would have to lower the price by $50,000 to keep the deal together. Some sellers might be willing to carry a second mortgage as long as it doesn't exceed the lender's loan-to-value (LTV) limit and the loan isn't due for at least five years. THE CLOSING: Check with your lender before attempting to negotiate a seller carry-back; some lenders won't allow it. Dian Hymer is a nationally syndicated real estate columnist and author. |
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