Hot answers tagged

76

You submitted a claim for damage to the deck. The insurance company notified the mortgage company. Now the mortgage company wants to make sure that the collateral for the loan is still in good condition. They want you to make the repairs that you insisted needed to be done. They may even require you to use a licensed contractor before releasing the funds. ...


52

I used to work with a team that produced a pretty accurate housing prices model so I know a little about this. There is no simple relationship between average house prices for a valuation cluster (cheapest, middle, highest value). You cannot even say that rising prices at the lower strata imply rising prices at the upper end because there are a lot of ...


46

Your mortgage agreement probably gives you three options: Pay off your mortgage in full. Use the insurance company's deck-repair payment to fix your deck to be similar in quality to what it was when you took out the mortgage, allowing for normal wear-and-tear since you took out the mortgage. In other words, you can "restore or repair the property to ...


33

Is there any shady reason why the seller would use this strategy? The seller has a reason for staying for many months and they want to get out of ownership now. If I was presented with a counter-offer like this I would worry that the seller has inside knowledge of something. They know that the city is going to seize the property for a big project, or that ...


24

Check your mortgage paper work. Most mortgages have clauses requiring you to maintain the property, keep it in good repair, and to prevent spoilage. The property is the mortgagee's security for the loan, so it's reasonable that they have a voice in keeping the property in good shape. You can tell them to pound sand, and then they can call the loan due in ...


22

He needs to go see a lawyer to find out what all his options are, and the consequences of any of them. Then he needs to get help extricating himself from this situation, in whatever fashion he chooses: buyout, giveaway, what have you. This situation involves property, which involves money, so definitely get professional advice on this. Otherwise, 20 years ...


22

In general, for a home you live in, there's maintenance, which is just that, you pay to keep your house in good repair. There's also real improvements. I spend $xxx to turn my poured cement basement into living space. Here, I keep my receipts and the cost (although not my labor) is added to the basis of my home when I sell. The couple things that may ...


18

A city is multiple markets. Neighborhoods can be hot or cold depending on what things are going on around them. The type of housing stock can also act independently. If the local university adds a new campus in the suburbs then the neighborhoods near the new campus will change, but the demand for apartments and townhouses will react differently than single ...


17

Real estate taxes for your home are deductible as an itemized deduction on Schedule A whether or not you own a business. The phrase “wasn’t used for business” that you see on Schedule A really means the amount that wasn’t deducted as a business expense elsewhere. So yes, if you are itemizing deductions, you can include the real estate taxes for your home on ...


16

They don't want to be on the hook to fix whatever the inspection turns up if they want to sell the house. They may want to benefit from what turns up in the inspection without going through the initial portion of the sale process until you do. The Realtor is not on your side. He wants to move things forward to a closed sale so that he gets his commission. ...


15

No that is not the way it works. As long as you owe them a single cent, if you are not paying as agreed, they can foreclose. It is up to you to find a way to pay what you own in other ways (for example, a HELOC). They will only get what you still owe them after the foreclosure sale and the remaining money is yours, but that does probably little good for you....


15

It seems likely that the mortgage is not in your boyfriend's name because he never would have qualified if he can't even afford utilities after paying the mortgage. It also seems unfair that his sister continues to have a 50% share of the equity if your boyfriend has been making the entire payment on the mortgage every month. What would happen if your ...


13

The prime question is can you afford to pay a higher amount? Pay more than the minimum will pay the loan off quicker but there are two near term implications: Your monthly expenses just went up. The good news is that if you have a big expense, like braces, in the future you can stop making the extra payment. Then resume them when you have more money ...


13

No. The longer answer is that you are handing a banker 10K, which goes into his pocket and to pay for the refinancing expenses. Then in a few months you will be selling the house. The purpose of the 15 year loan is to pay it off faster. In your situation you will pay off the loan in 4 months: no matter if you refinance. Before refinancing you owe X ...


13

Let's illustrate how typical mortgage and its insurance works, from the very beginning. You: How much for this house? Previous owner: 100k You: Give me a 100k loan, I'll let you hold this 100k asset as collateral Bank: Is it really worth 100k? Appraiser: Yes, it is worth 100k. Bank: Here is 100k for you. Now insure it for this amount so the value of my ...


13

On a personal income tax return home improvements are generally not deductible on a federal level. There might be some exceptions made for special tax programs, such as solar panels, but they tend to be the exception rather than the rule.


12

Paying interest on a mortgage on your residence allows you to deduct the interest, but only if all of your itemized deductions (mortgage interest, charitable donations, qualified medical expenses) are more that the standard deduction. So it only "lowers your taxes" to the extent that it gives you a bigger deduction. Property tax is deductible as well, but ...


11

All I see is "we are refinancing to raise our raise from 3.75% to 3.875%." There is a special place in hell for the guy who would sell you such a refi. The fact that you are going from 30 to 15 and not the other way around is what's troublesome. Nearly all fixed rate loans will allow prepayments. So, calculate the new payment and start paying at a faster ...


11

How did the house pass to them? Was it held in Trust? Were they both jointly listed on the deed? If no to both, then the house should have gone into probate..assuming this is going on in the US...where the probate court would reassign ownership. Until this happens the house cannot be sold and is formally owned by the estate. I agree with the former post ...


11

The most likely reason for this is that the relocation company wants to have a guaranteed sale so as to get a new mortgage in the new location. Understand that the relocation company generally works for a prospective employer. So they are trying to make the process as painless as possible for the homeowner (who is probably getting hired as a professional, ...


10

No one can answer this but yourself.... 1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another. 2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more ...


10

This is not risky, or dishonest. It is known as a contingency. Your relative is free to back out of this deal if it does not work for him. Although not common, basically your relation is buying a home and becoming a landlord for a period of time. A similar situation would occur if they were buying a home that was rented to a tenant with a lease in place. ...


9

Get a lawyer. If you're having legal issues - get a lawyer. If you're having contract issues - get a lawyer.


9

When you buy a house, even if you use a mortgage, you own the whole house. You just also have a large debt which is secured on the house. This means that you have agreed with the mortgage company that if you fail to pay the debt, they can seize your house and sell it to satisfy the debt. Hence the relative value of the house to the mortgage is not relevant ...


9

It's not unheard of to charge rent during a closing period, but 12 months is a LONG time. It's a year of potential missed rent payments, and 12 months of "wear and tear" that the seller is no longer concerned about. I would back out just because of that, not because of the rent arrangement. Lots of houses will come on the market in the next 12 ...


8

It appears the bank is trying to get one, and only one, offer from you. Normally, as you know, the buyer makes an offer which includes an inspection contingency. The buyer's offer can change based on the results of the inspection. The bank may have received other offers that they accepted and the offers were later reduced based on something found in the ...


8

Over a 5 year time-frame you aren't doing much more than speculating/gambling. Any information that is publicly available that could drive home values is likely already going to be priced into the house. In short, if we knew the answer to your question we would be out shopping for Mink car covers for our Ferraris and not answering questions here.


8

If you're looking for some formula, I don't think one exists. People talk about this all the time and give conflicting advice. If there was a proven-accurate formula, they wouldn't be debating it. There are basically 3 reasons to do a home improvement project: (a) Correct a problem so that you prevent on-going damage to your home. For example, have a ...


8

Unless you think it's likely that you'll move back soon, this is probably not the best way to get experience as a landlord. You might want to talk to a property management company and look at the fees they would charge to do your job as landlord. You should also consider that your mortgage may require you to occupy the house for a certain amount of time. ...


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