Home Inspection Process in KC Area
Posted on February 26, 2008
Filed Under Inspection, Home Repair, Real Estate | Comments Off
Now it is time to begin the inspection process. It is CRITICAL that we watch the dates. We must complete ALL inspections and respond before the deadline. Otherwise the seller does not have to fix a thing and you own the home “as-is”. Relax it is not quite as bad as that, if something does come up we can ask (in writing) to extend the inspection period.
INSPECTIONS - We begin with the whole house inspector. You may use anyone you like for this process.
In KS and MO inspectors are not required to be licensed, nor are they required to carry insurance. Most try to limit their liability to the price of the inspection. FYI - we are currently trying to change this through legislation. The key things to ask an inspector is what formal training do they have? Are they insured? And for how much? Read more
Pet Odor Detection and Removal
Posted on December 27, 2007
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Whether you’re buying a home or selling one, the topic of pet odor removal is by far the most popular we encounter. Buyers must be aware that humidity and odors go hand in hand. If you buy a house in the winter you may not smell the issue for several months. As the humidity rises in spring and summer our phone rings off the hook. If you’re a seller, we address question of “should I clean it or replace it”. Buyer beware, to solve it, it must be found. Read more
Mortgage Legislative Updates
Posted on December 27, 2007
Filed Under Real Estate | Comments Off
Update # 1 - Mortgage Relief Passed by Congress & Signed Into Law by the President!
On Thursday, December 20th, President Bush signed into law a bill passed by Congress: HR 3648 –Mortgage Forgiveness Debt Relief Act of 2007. The three major points are:
· Elimination of the “phantom tax” on foreclosures, short sales or other discharges of debt on a primary residence. Consider this scenario: A property is worth $250,000, and the mortgage balance is $300,000. Under the old rules, if a lender forgave the $50k difference as part of a foreclosure, short sale, refinance or loan modification, the borrower had to claim the $50k as income and pay federal income taxes on that amount. The new law eliminates this “phantom tax”, and the forgiven debt is no longer treated as taxable income to the borrower as long as certain requirements are met, such as the discharged mortgage balance must be on the taxpayer’s principal residence.
· The tax deduction for mortgage insurance premiums is now extended until December 31, 2010 instead of expiring at the end of 2007. The same rules apply as before in terms of the income limitations etc., and these rules are covered in the taxation section of the CMPS curriculum.
· The capital gains exclusion is now $500,000 instead of $250,000 for an unmarried individual who sells their primary residence within 2 years of the time their spouse has died. This new guideline applies to sales after December 31, 2007, and provides relief for widows and widowers by giving them a 2 year window from the time their spouse has died to sell their home and receive the $500,000 exclusion. Of course, the same rules apply as before, where the individual(s) need to have lived in the home as their primary residence for 2 out of the last 5 years.
You can read the full version of the bill by visiting the Library of Congress THOMAS web site and searching for HR 3648. Version # 6 (the enrolled / ENR version) is the final version that was passed by both the House and Senate.
Update # 2 - AMT Relief Passed by Congress (FINALLY)!
After much drama and a few rounds of chicken between the House and Senate, Congress FINALLY passed AMT relief on Wednesday, December 19. The President has indicated a strong willingness to sign this bill into law, and it is currently awaiting his signature. Under this one year patch, approx. 20 million taxpayers have escaped the clutches of the AMT. However, approx. 3.5 million taxpayers are still expected to be subject to the AMT.
FHA Update
Posted on November 30, 2007
Filed Under Real Estate, Mortgage | Comments Off
The Expanding American Homeownership Act, H.R. 1852, know as FHA reform, was approved by the U. S. House Financial Services Committee on May 3, 2007. The bill now awaits a vote by the full House of Representatives and by the Senate. It will enable the FHA to reach more prospective borrowers and allow millions more low-and moderate-income families to achieve homeownership. I will continue to give you updates as I get them. I believe this will spark the Real Estate Industry.Some of the highlights of the legislation include:*Increase the loan limit up to 65% of the conforming loan limit. This would increase the FHA max loan to $271,000*Eliminates the FHA’s 3% minimum cash investment requirement and down payment calculation Read more
Beware of Unscrupulous Contractors
Posted on November 22, 2007
Filed Under Home Repair, Real Estate | Comments Off
This irritating phenomenon is nothing new, but it seems to be on the increase … I’m sure some of your clients have experienced it, whether they know it or not.It goes something like this: I phone my 12- month warranty company, or just an HVAC contractor, because my furnace is not lighting. After a cursory inspection, the contractor informs me that there are serious, even life-threatening, issues with my furnace; and it either needs to be replaced or undergo expensive repairs. Furthermore, the home inspection company should have caught this for me! Read more
Before Looking at Homes, Get a Pre-Approval Letter
Posted on November 21, 2007
Filed Under Buyer Info, Real Estate, Mortgage | Comments Off
Before writing an offer, we will need a pre-approval letter from a lender. Basically, it says that you are pre-qualified for a mortgage. I suggest you get one for as close to the actual loan amount as possible. When we negotiate we do not necessarily want a seller to know the max amount that you are qualified to borrow . We need to attach it to any offer we submit. That lets the seller know that you are serious and can afford to buy their home. Seller’s will not consider an offer without it. Read more
Should A First Time Home Buyer Buy A Foreclosure?
Posted on November 21, 2007
Filed Under Foreclosure, Buyer Info | Comments Off
What a coincidence twice in one day, I had two first time home buyers ask me about buying foreclosures.
Dear Steve,
Do you have an opinion on foreclosures? Obviously, the no warranty (disclosure) part is disturbing, but in your experience, is a pre-purchase inspection typically enough to make it worthwhile?
Also, I don’t know anything about Missouri or Kansas law regarding an owners’ right of redemption. Is there a possibility that an owner could preempt my offer?
FORECLOSURES - In some cases the owner does have a right of redemption. In some cases they do not. We would have to check on each particular property. How’s that for a “lawyer like” answer?
Avoiding Real Estate Foreclosure
Posted on November 4, 2007
Filed Under Foreclosure, Seller Info, Real Estate, Mortgage | Leave a Comment
Many markets are seeing a rise in delinquencies and foreclosures. If you’ve missed payments on your mortgage or are worried about future payments, it’s easy to feel like you’re all on your own. With your house on the line, you may be tempted to hide and merely hope for the best. However, if you face problems quickly and directly you’re much more likely to avoid foreclosure.It’s important to remember that foreclosure is also an undesirable endgame for lenders. Many mortgage companies would rather attempt to work with a delinquent borrower before resorting to the expense and hassle of foreclosure. Read more
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