News About Properties

How to Land a Foreclosure House

Buying a foreclosure home often is appealing to house hunters trying to stretch their dollars. But finding a good one can be a challenge.

“The vast majority of the banks don’t want us to advertise [foreclosure homes] as ‘bank-owned’ because it comes with a negative connotation,” says Ryan Melvin, co-owner of More Realty Group in Las Vegas.

That means there’s no sign on the front lawn indicating that it’s a bank-owned house. And a buyer probably won’t find a property advertised as a foreclosure in marketing materials, says Mr. Melvin, who specializes in real-estate owned properties, or REOs, those that have been reclaimed by a bank, typically after an unsuccessful foreclosure auction.

Be wary of buying into homeowner association

It has always been wise to take extra care when buying a house or apartment in a community governed by its owners.

But nowadays, with so many people behind on their mortgage payments, even a fire-sale price from a desperate seller could quickly lose its luster if too many 0f your new neighbors haven’t been paying their share of the cost to operate the community.

If that turns out to be the case, says Richard Swerdlow of Condo.com, a Coconut Grove, Fla., marketplace for condominiums, you could be hit with a big and unexpected assessment, significantly higher dues or possibly both.

“Every day we get e-mails - it’s got to be in thousands - about condo boards that are struggling to pay their bills,” says Swerdlow. “So it’s either make everybody pay more or curtail or even discontinue services.”

Apartment (REIT) Hunting

Can the sluggish economy really justify the prices investors are currently paying for stocks? That’s the question on traders’ minds these days, and it certainly applies to real estate companies, which have seen their shares roughly double since the market’s financial crisis nadir in March, easily trumping the S&P 500’s mere 57% gain. There are fewer bargains in real estate investment trusts than before the rally, but REITs that hold apartment towers, hotels and self-storage units provide tempting opportunities, says analyst Mike Salinsky of RBC Capital Markets.

REITs were perilously close to the financial crisis: They own property, depend heavily on debt and cannot retain their earnings. As property values plummeted and banks pulled back on lending, REIT shares nosedived. As the bond and stock markets have reopened to REITs, investor poured back in to the sector. That’s left many investors wondering if they missed their opportunity, and rightly so, says Salinsky.

Most, if not all, apartment, hotel and storage REITs will see sales and profits decline this year and next. Rents are falling faster than prices, so the investment yield on companies’ property portfolios (which is, to some extent, what you get if you buy shares today) is dropping too. Add to that a volatile stock market, and the likelihood of further dividend reductions and the industry’s prospects l

Buying a condominium requires research

Condos are a popular choice for first-time buyers as well as homeowners who want to downsize because they tend to be less expensive than single-family residences. Also, they usually require less maintenance.

Condominium owners belong to a homeowners association that collects dues, usually on a monthly basis, to pay the cost of common-area liability insurance and maintenance, as well as to fund a reserve account. Precisely what is covered by HOA dues varies from one condo complex to another.

Before buying a condominium, make sure you read and understand all of the documentation, such as the covenants, conditions and restrictions. The CC&Rs could include restrictions on your use of the property that would affect your decision to buy, like no large dogs or prohibitions against renting.

You should also review the bylaws, the homeowners association budget, a delineation of what is covered by the homeowner dues, a current financial statement for the complex and minutes from association board member meetings. If you have any questions about the documents, contact one of the officers on the board of directors, or ask your real estate agent or attorney.

First-time home buyers scramble to beat deadline for $8,000 tax credit

Ashley Johnson took a whirlwind tour of roughly 40 homes this summer.

The 26-year-old was staring down a deadline: Buy a home by the end of November in order to get $8,000 in free money from the federal government.

Who qualifies: First-time buyers and those who have not owned a home in three years. To claim the full amount, single buyers must have a modified adjusted gross income of $75,000 or less; for married buyers, that number is $150,000. Single buyers making more than $95,000 or married couples making more than $170,000 do not qualify.

How it works: A buyer purchases a home and then claims the credit on his federal income tax return. The credit offsets taxes the buyer might owe. If the buyer owes only $5,000 in taxes but is eligible for the full $8,000 credit, he gets a check for the difference — $3,000. Buyers can amend their 2008 tax returns or claim the credit on their 2009 returns.

Four years after Hurricane Wilma battered South Florida, some homeowners are still dealing with claims [South Florida]

Marta Ayala’s colorful artwork is showcased throughout her immaculate Parkland home. Every room also features vivid reminders of 2005’s Hurricane Wilma: cracking paint and yellow water drip marks, some as long as 10 feet.

Weeks after the storm, Ayala and her husband, Carlos, got $12,700 from their insurer, The Hartford, to repair their roof. In 2006 and 2007, they paid for more repairs. Still, they needed buckets to catch dripping water during heavy rains.

Earlier this month, the Ayalas broke ranks with the thousands of Floridians waiting for Wilma insurance settlements. The Hartford agreed to pay $39,000 for a new roof.

“It has been a battle,” said Carlos Ayala.