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Millennial mortgage problem: Down payments and expensive cities #realestate #Homeowner #Economy #Investing

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How to remove your ex from the mortgage

If you have sufficient equity, credit and income, and your ex agrees to give you the house, you should be able to refinance. This publicly removes the former partner's name from the property deed and the mortgage. Under a loan assumption, you take full responsibility for the mortgage and remove your ex from the note. (And if your ex is the one who got the house, your credit – and finances – are protected if your former spouse fails to make payments.) The problem here is that many lenders won’t agree to a loan assumption. When trying to remove a spouse from a VA-backed mortgage, the streamline refinance requirements are similar. You and your ex can agree to both keep making payments on the mortgage. The first four options require more work, but the odds of a successful outcome are much higher.

Is there something similar to renter’s insurance for condominium owners?

Why should my insurance policy have to pay for something that goes wrong in the common elements? Every condominium owner in the United States should have this insurance coverage. Because in many older buildings that were converted from rental to condo, things happen, and each time the association has to make a claim against the master insurance policy, the association has to pay the deductible; this typically ranges from $5,000 to $20,000. Dear Benny: I am on the board of a 16-unit condominium association. He’s asking the association to pay more than $5,000 to have some windows replaced. If the developer sent him windows, why is he now asking the association to pay to install them? You have to review your legal documents: In some, windows are common elements and in others they are part of the unit. If they are part of the unit, then the responsibility to install is on the unit owner — however, he will need to get permission from your board. I firmly believe that every unit owner should read these legal documents carefully at least once and board members should read at least once a year.

Housing Peak Levels Then Vs. Now

Principal Economist Molly Boesel recently took a look at the overall boom and bust cycle for the housing market in 2017. According to Boesel, while 11 years have gone by since the start of the housing crisis in 2006, U.S. home prices are nearly back to the peak level they were at in April of 2006. “After hitting peak in 2006, the national price level fell for five years, finally reaching bottom in March 2011 after falling 33 percent nationally,” Boesel said. Today, CoreLogic’s data indicates that the U.S. home price index is almost back to those peak levels, but regionally, some locations are still far from it. When considering the U.S. housing crisis home price declines compared to some other historical declines, this is what CoreLogic’s data discovered. According to Boesel, in the mid-1980’s, Texas experienced an oil bust that caused home prices to fall by 16 percent over three and a half years. After more than 11 years, home prices in Nevada through July 2017 were still 27 percent below the peak level.

Homeowners might have to start paying taxes on forgiven debt again

“Many homeowners struggled to repay their mortgages, and were re-negotiating their mortgages with banks,” said Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center. As part of those re-negotiations the banks sometimes forgave part of the debt for homeowners who had missed mortgage payments or were underwater and sold houses for less than what they owed on their mortgages. Homeowners had to pay taxes on it, even though they no longer had a home. “And it seems as if the IRS is hitting people when they’re down,” Rosenthal said. So, to take the pressure off people who were already struggling through the recession, Congress passed the Mortgage Forgiveness Debt Relief Act in 2007. And lawmakers kept renewing it, helping millions of homeowners. People like 49-year-old Fikirte Betru from Germantown, Maryland. She and her husband scraped by for years, to make their mortgage payments on time. The bank forgave around $150,000 of their debt. “A lot of people are saying we know, it’s on the list,” said Marceline White, executive director of the Maryland Consumer Rights Coalition.

Bankruptcy Isn’t for Everyone. Maybe It Should Be.

U.S. courts and creditors did not necessarily view insolvency as a moral failure. Not everyone in politics saw it that way, and in 1803 Congress repealed the law. Since then, an orderly, more-or-less predictable bankruptcy process has been part of the American way of life -- and this country's relatively forgiving approach to bankruptcy has to some extent gone global. What is definitely a problem is the absence of any bankruptcy process at all. At least, when a big one declares bankruptcy at a time of great financial stress, as Lehman Brothers did in 2008, things don't work out too well. Also, I know: Too much Harvard Law School! Not Harvard Law School!

Home prices: Growth stalls out

It looks like would-be homeowners are in luck. The firm projects that growth will slow even more, with prices rising just 0.1 percent for the month. “While growth in home sales has stalled due to lack of inventory during the last few months, the tight inventory has actually helped stabilize price growth,” Nothaft said. In Wyoming, for example, prices rose just 0.3 percent in August and 1.7 percent since last year. What are today’s mortgage rates? With home price growth finally stalling — and experts projecting it to slow even further — there’s never been a better time to buy a home.

Net Worth of Homeowners 44X Greater than Renters

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago. The study revealed that the 2016 median net worth of homeowners was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. That is why, for the fourth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds. Members: Sign in now to set up your Personalized Posts & start sharing today!

Here are the top 10 lenders dominating the mortgage market

How many mortgage lenders in the top 10 can you name?

The 5 Most Expensive States for Homeowners

If you want to live near the coast, according to a report, you should be prepared to work some overtime. According to the report, to afford the median mortgage in Los Angeles, San Francisco, and Miami, if the head of the household is earning median pay, they would have to work more than 100 hours a month to afford their mortgage. The top 5 cities were Los Angeles (112 hours), Miami (109 hours), San Francisco (107 hours), Boston (95 hours), and Oakland (83 hours). “That’s right—you don’t need to work past lunch on Wednesday to earn enough money to make a mortgage payment in [such locations]. According to the above data, it doesn’t come as a surprise why California would be No.1 on the list of most expensive states with the median home value prices at $449,100. In the 5 least expensive states, No. 1 was West Virginia ($112,100), Mississippi ($112,700), Arkansas ($120,700), Oklahoma ($126,800), and Kentucky ($130,000).

Millennial mortgage problem: Down payments and expensive cities

Contrary to popular opinion, which says Millennials are city-worshipping vagrants, 80% of respondents said they plan to buy a house or apartment. And when it comes to the reality of home mortgages, most Millennials probably aren’t going to like what they see. Apartment List determined how long it would take the average respondent to save for a 20% down payment based on how much they’ve already saved, how much help they anticipate receiving, and how much they’re saving each month. Based on those factors, Apartment List says it will take Millennials between five and 23 years to save up enough money to afford a condo in 31 popular cities. At this rate, Millennials in 16 cities will have to wait more than a decade before they can afford a down payment — and in three cities, they’ll have to wait more than 20 years! FHA loans: With the backing of the Federal Housing Authority, first-time homebuyers with credit scores of 580 or above might be able to put as little as 3.5% down. To see what’s available in your area, search for “down payment assistance” or “first-time homebuyer grants” in your state.


12 Valuable Lessons Real Estate Pros Learned From Their Own Mistakes

12 Valuable Lessons Real Estate Pros Learned From Their Own Mistakes. Our successes shape who are, just as much as our failures do, and the lessons we choose to learn from them. Whether it’s a price pitfall, being burned by your partners or incorrectly evaluating the true value of a property, there are many possible real estate investing failures you could face. Here are several valuable lessons to learn from your professional setbacks, according to 12 members of Forbes Real Estate Council. Partner With The Right People Business is easy; people make it difficult. The mistakes are a necessary part of the learning process. Follow Your Heart When I sold my first business to VCs after 25 years, I stayed on as CEO to expand. Understand Your Potential Partners When growing a business, it can become necessary to make quick decisions about potential business partners based solely on a resume and recommendation from a trusted source. Keep Learning And The Fan Club Will Grow If you stay in business long enough, you will have enemies. That's why it's so important to focus on the one or two things that actually matter.