Those age 62 or older looking for more income for retirement may want to look at their biggest asset for potential help. By using a reverse mortgage loan, homeowners can turn the value of their home into cash without moving. But specialists stress the importance of getting all information before making a decision. To apply for a reverse mortgage loan, individuals must go through a free counseling service to get a certificate. Certificates are valid for six months after the counseling session. AARP, HUD and the National Foundation for Credit Counseling have certified 500 counselors nationwide. There are three basic combinations of payment for a reverse mortgage. Borrowers can receive a lump sum after closing the loan, choose a line of credit and draw on it at any time or they can opt for monthly payments.

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search for : reverse mortgage loan, reverse mortgage, National Foundation for Credit Counseling

Buying a house or condo with little cash to contribute towards the down payment and closing costs is actually still possible, even in with the mortgage community experiencing a sub-prime mess. Home sellers and home builders, as well as their real estate agents, have never been more eager to sell you a home. Simply, forget what you read or heard about the “subprime” mortgage market. That segment of the “for sale” inventory is a very small fraction of the home sales market. If you have good income and a FICO score over 620, you can probably qualify for a conventional mortgage. Qualified veterans can obtain no-down-payment VA mortgages with minimal closing costs. PMI (private mortgage insurance) home loans for 90 percent, 95 percent and even 100 percent are grabbing a rising share of the mortgage market.

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Mortgage and finance experts are predicting that about $50 billion in adjustable rate mortgages will soon reset. The effect for homeowners is that interest rates on their adjustable rate mortgages will increase and unfortunately many of these consumers are borderline borrowers. Despite efforts to raise awareness, it many aren’t fully prepared for what’s to come. Most borrowers are likely to just scramble to pay the higher expenses, some of which will jump by 50 percent and come as a big surprise. Other loan holders will find no choice but to default and some will be driven into bankruptcy.

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search for : adjustable rate mortgages, borderline borrowers

$5,850,000

MLS Number: 50913

City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.

39.4 acres with 360 degree view of Blue Ridge Mountains.

5,200 sq. ft. main house built in 1990 on 1.24 acres.

No restrictions and no zoning offer many other options:

* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

The US House of Representatives recently voted to remove a tax penalty known as “phantom income” tax. In the past, if a lender or creditor forgives all or part of a debt due to a foreclosure or short sale , the amount forgiven is seen as income by the IRS, which is taxable. The IRS requires that lenders send a Form 1099 reporting they cancelled the debt to any homeowners that foreclose or participate in a short sale. The IRS turns around and taxes the homeowner on the “phantom income.” The obvious issue with the current law is if the homeowner did not have the money to pay their mortgage (resulting in the foreclosure), they most likely will not have the money to pay taxes on income they were never actually given.

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For a decade, credit-challenged homebuyers have used a regulatory loophole that lets them get Federal Housing Administration mortgages without putting their own money down, while at the same time avoiding costly subprime loans. About 7,000 buyers per month were exploiting the loophole, and now the feds are squeezing it shut. The new policy means that prospective homebuyers with marginal credit will have to act quickly if they want to buy houses without putting any money down. Otherwise, they will have to save for down payments or wait for the FHA to roll out its own zero-down program.

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search for : Federal Housing Administration, subprime loan

To examine the surge in subprime lending, the The Wall Street Journal analyzed more than 250 million records on mortgage applications and originations filed by lenders under the federal Home Mortgage Disclosure Act. Subprime mortgages were initially aimed at lower-income consumers with spotty credit. But the data contradict the conventional wisdom that subprime borrowers are overwhelmingly low-income residents of inner cities. Although the concentration of high-rate loans is higher in poorer communities, the numbers show that high-rate lending also rose sharply in middle-class and wealthier communities.

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According to a new study by the Center For Housing Policy, many American workers can’t afford the median priced homes in their cities. While prices have declined two percent from a year ago in 2020 metro markets, mortgage interest rates have risen enough to make homes less affordable, which could well explain why the buyer’s market appears to be deepening nationwide, despite job growth and low unemployment. In better times, 40 percent of the market is driven by second home buyers and investors buying to resell for quick profits. Currently, speculators have left the market and housing has hit a bottom and will take years to recover.

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search for : median priced homes, mortgage interest rates

A new mortgage industry alliance has been recently formed to help beleaguered mortgage holders. The alliance, called HopeNow, was announced by Treasury Secretary Henry Paulson and counts as members some of the largest lenders and servicers that collect payments, a handful of housing counselor networks, and a group representing investors who hold mortgage debt. It is intended to coordinate efforts between servicers and counselors to provide “workouts,” which can include lowering the interest rate on a loan, spreading out past-due payments over the life of the loan or a short-term repayment plan.

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search for : mortgage holder, HopeNow, past-due payment

IRS officials agreed to take action in response to a report by a Treasury Department unit urging the agency to improve its oversight of like-kind exchanges. Lawyers and accountants often refer to this as 1031 exchanges, named after a section of the Internal Revenue Code. These exchanges generally allow participants to defer, or sometimes even avoid, capital-gains taxes when they sell a business or investment property and replace it with a similar asset within a specified period. Some people have used the basic concept to defer taxes on gains in other types of property, including art and collectibles.

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search for : like-kind exchange, 1031 exchange