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Modify my home in THIS market?

By Tom Kelly, Wednesday, November 19, 2008.

With many areas of the country now in a down sales cycle, it makes a lot of sense to consider some changes that will make your home more comfortable -- for you but not necessarily the next potential owner.

In fact, aging-in-place renovation work is expected to provide one of the bright spots for residential construction as the industry eventually begins gaining ground, according to panelists at the recent National Association of Home Builders' remodeling show. more...

HUD hikes reverse mortgage loan limit

By Tom Kelly, Wednesday, November 12, 2008.

One of the most significant developments in the history of reverse mortgages occurred recently when FHA Commissioner Brian Montgomery announced that a new single national limit had been reached, eliminating critical geographical boundaries for many seniors in the country's most popular reverse mortgage program.

Loans insured by the Department of Housing and Urban Development, known as Home Equity Conversion Mortgages, or HECMs, now have a common ceiling of $417,000, regardless of where the home is located. more...

Is rate lock wise in today's market?

By Tom Kelly, Wednesday, November 5, 2008.

Loan rates have been as staccato as the stock market. After the longer process of loan approval, when do you lock the loan rate? Will your 6.5 percent fixed-rate loan go up if you don't lock it today or should you gamble on the hope of a possible tick downward?

There was a time, not long ago, when rate locks were not a part of the conventional loan package. Borrowers had to pay for a lock, in addition to the loan origination fee. more...

What happens when reverse mortgage isn't repaid?

By Tom Kelly, Wednesday, October 29, 2008.

In a recent column, we addressed the possibility of using an Individual Retirement Account to purchase investment real estate. more...

Small lenders fill niche for Mexican mortgages

By Tom Kelly, Wednesday, October 22, 2008.

The residential mortgage meltdown in the United States not only has devalued investors' significant assets but it has stymied their ability to create and explore potential future business.

New York-based Lehman Brothers Resort Home Lending abruptly ended its four-month entry into the Mexican and Costa Rican mortgage markets even as many destinations in those two countries continue to appreciate and draw second-home, retirement and investment buyers. more...

How option ARMs killed WaMu

By Tom Kelly, Wednesday, October 15, 2008.

(This is Part 2 of a two-part series. Read Part 1, "WaMu failed to heed lesson learned in '80s.")

Kerry Killinger, the former strategist at the brokerage firm Murphey Favre, became Washington Mutual's chief executive in 1990. He made his first significant money by flipping investment homes in eastern Washington state and deeply believed in the power of the housing industry. more...

WaMu failed to heed lesson learned in '80s

By Tom Kelly, Wednesday, October 8, 2008.

Twelve years ago, Washington Mutual was on a can't-miss roll.

The Seattle-based thrift had made 22 bank buys since 1983 and increased its lead over the competition in mortgage lending in all Northwest states. It was riding high on the commercial success of the "Rodeo Grandmas," a television advertisement featuring four women aged 68-92 who adoringly yodeled and roped viewers into "corralling" WaMu's new concept of free checking for its customers. more...

Can lender challenge loan data after closing?

By Tom Kelly, Wednesday, October 1, 2008.

The mortgage meltdown has brought a return to the process of proper verification of a borrower's assets. But just how long is the information stated on your home-loan application considered valid? If you retire or lose your job after your loan closes, can the lender demand payment in full?

Those questions, and others like them, were raised recently by a longtime nurse whose lender demanded that a "reverification form" be signed at closing. She was especially concerned because she had already given financial information -- bank deposits, stocks, income -- at the time of application. more...

Why consumer confidence is key to recovery

By Tom Kelly, Wednesday, September 24, 2008.

I don't know what was more exasperating: the number of commercials during recent sporting events telecasts or the fact that most of the paid interruptions were approved by political candidates. Can the pace possibly slow before November? more...

Housing bill cuts reverse-mortgage fees

By Tom Kelly, Wednesday, September 17, 2008.

"Some people will say reverse mortgages are absolutely too expensive, while others will tell you they are the greatest deal on earth. What all the years of talking to seniors about reverse mortgages has taught me is that you can show somebody what something costs, but you cannot tell them what it's worth to them," said Ken Scholen, founder of the nonprofit National Center for Home Equity Conversion. more...

Deal's not sealed until escrow closes

By Tom Kelly, Wednesday, September 10, 2008.

A few weeks ago, we discussed the case of a veteran Realtor who canceled a much-awaited kayak trip because an out-of-state buyer was arriving with a reported all-cash offer for one of her listings. Because such buyers were scarce, she wanted to be sure she was in town to personally handle the transaction. more...

Don't rely on agent's choice for loan, title services

By Tom Kelly, Wednesday, August 27, 2008.

Real estate agents are clearly the most influential persons in every real estate transaction and their power is not reserved for buyers and sellers -- it extends to all professionals involved.

That position of influence becomes magnified in a slower housing market. Everybody is desperate for deals. And, while Realtors typically offer beneficial referrals, consumers should always remember that they have a choice when picking the various players in the home-buying process -- appraisal, credit report, title report, escrow company, mortgage company, etc. more...

Option ARM fallout to surpass subprime mess

By Tom Kelly, Wednesday, August 20, 2008.

In a recent column, shortly after Washington Mutual announced it would no longer offer its option adjustable-rate mortgage (ARM) to home buyers, I noted that the program was a benefit to our family because it allowed us to adjust our monthly payments given the educational needs of our four growing children. more...

Make your vacation home a boat

By Tom Kelly, Wednesday, August 13, 2008.

It seems boat traffic has slowed this summer on local lakes. Higher fuel costs clearly are pinching the busiest leisure time of the year.

However, a significant blow to the masses is not even a light tap to the rich. Astonishingly, it could not be a better time to be a builder of large yachts. A recent report indicates the number of mega-yachts is not only on the rise, but that shipbuilders around the world are having difficulty employing enough workers to meet the demand. more...

Put part-time rental cash in your pocket

By Tom Kelly, Wednesday, August 6, 2008.

It's the time of year for weddings in faraway churches and family reunions in relaxing places. Perhaps friends (or friends of friends) have approached you about renting your home or vacation cabin when you are not using it this year. And, they are willing to pay -- an amount in line with the best rental properties in the area.

Do you have to declare the income to the Internal Revenue Service on your annual income tax return? How much is too much before crossing into different tax threshold? more...

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