Pay-Now-or-Later Mortgages

Chicago Tribune ^ | ( February 10) | Melia, Marilyn Kennedy

[american spirit]

No, nothing to do with voices, it's more like that irritating hemorrhoid that flares up every so often which seems to have a lot in common with many of your posts. Go back to sucking your thumb.

[freeper12]

Thanks for the information...fascinating read, but I'll need to educate myself more before I decide if I should be worried or not....like I need another thing to worry about. :)

[wtc911]

I waited a bit longer than I wish I had too. You are right, one bad tenant can make you miserable. I have found though that certain types of people are pretty good risks. Now I keep my RE investment properties limited to two bedroom houses or studio apartments near hospitals. They will be the least costly properties to buy. I rent to nurses. They are well paid, responsible and disciplined for the most part. When they are ready to move on they always have a friend who needs a place. It's worth a try. Good luck.

[Dubya]

New-Home Buyer Bill in Works

( February 11) -- Senators Debbie Stabenow (D-Mich.) and Gordon Smith (R-Ore.) in the next few weeks plan to introduce new legislation that would establish a tax credit of $3,000 for individuals and $6,000 for couples making their first home purchase. First-time homebuyers in the 27 percent income tax bracket or lower would qualify for a voucher to put the tax credit toward their downpayment and closing costs, Stabenow said during a National Association of Affordable Housing Lenders conference in Washington, D.C., on Thursday.

Source: American Banker (02/11/03); Heller, Michele

[Dubya]

Rap Sheet Can Mean Costly Insurance

The Comprehensive Loss Underwriting Exchange database details water, wind, or fire claims made on homes over the last five years; and a spokesman for
the company that manages the database says that 30 percent to 40 percent of residences nationwide have a rap sheet highlighting their losses. Insurers
use these reports to identify properties with significant claims histories and then either boost their premiums or cancel the coverage altogether.

[Dubya]

More Homeowners Tap Into Equity

( February 11) -- An increasing number of homeowners are tapping into their equity to repay credit cards and other debts. In fact, home equity loan volume surged 40 percent from 2001 to $384 billion last June--52 percent of that in the form of lines of credit.

Homeowners can obtain either equity loans, which are similar to second mortgages with monthly payments, or credit lines that allow them to access the money when necessary via check or credit card. Home equity borrowing is appealing because borrowers receive tax deductions for loans up to $100,000; the money can be used for any purpose and is readily available; the approval time is much quicker than for a first mortgage; and interest rates are as low as 4 percent, versus 20 percent for a credit card.

However, homeowners should avoid home equity loans or lines of credit if they do not have a steady income or they cannot control their spending. If interest rates rise significantly or they accumulate more debt and are unable to make the payments, they could wind up in foreclosure. According to the Federal Trade Commission, homeowners also should avoid doing business with unscrupulous lenders that pressure them to provide false information, sign blank documents, or proceed without reading the necessary disclosures; borrowing more money than necessary; and signing the documents without having any confusing details explained.

Source: Fort Lauderdale Sun-Sentinel (02/10/03); Heady, Robert K.