by Carla Griffin on May 14, 2012
Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.
- The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.
- A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”
- Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.
- In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs. One list of approved businesses can be found at 203kcontractors.com.
- Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.
For additional information about the FHA 203(k) rehabilitation program, please visit http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
by Carla Griffin on May 3, 2012
Ask your agent to give you a form called Termination of Buyer Agency. It will cancel oral or written agency agreements.
If you are an agent who wants to cancel the agency agreement, you may want to soften the blow and suggest that your client would be better off working with another agent who could more readily meet the client’s needs. Then refer that client to an agent in exchange for a referral fee.
by Carla Griffin on May 1, 2012
If you are unhappy with the work being done by your agent, here are some tips to cancel the Listing Agreement:
- Ask the agent to cancel the listing. Be aware that Exclusive Right-to-Sell listings contain a safety or protection clause.
- If the agent refuses, call the agent’s broker and request a cancellation.
- If the broker refuses, ask the broker to assign another agent to you. Most reputable brokers who want to maintain good community relations will cancel a listing if the seller insists.
- If there are no workable solutions, call a real estate lawyer for termination assistance, but first, tell the broker of your intentions to do so. Sometimes that’s enough to get a release.
by Carla Griffin on April 24, 2012
Leaving a vacation home outright to your loved ones can create more family conflict and problems than you might think.
While a vacation home may have been a peaceful haven for you and your spouse throughout the years, your children may not look at the house the same way when it becomes theirs to manage and maintain.
In fact, many heirs of vacation homes are simply unable to afford the yearly property taxes and related maintenance costs. What mom and dad meant as a blessing actually becomes a burden to the children who were not prepared to assume these new responsibilities.
And what about those heirs that live too far away to enjoy the vacation property regularly? Should they be held just as responsible for its upkeep as siblings and cousins who live nearby and are able to use it on a regular basis? What kind of alternative might be available for them?
This is where working with a Silicon Valley wills and trusts attorney can be extremely valuable for families that need more flexible options when passing down a vacation home.
