You are tired of renting, of landlords and of yearlong leases. You want something permanent. You want to purchase a property. However, you don’t want an entire house. That would be too much – too much space, too much money, just too much. As such, you are left with two options: a condo or a [...]
You are tired of renting, of landlords and of yearlong leases. You want something permanent. You want to purchase a property. However, you don’t want an entire house. That would be too much – too much space, too much money, just too much. As such, you are left with two options: a condo or a co-op.
A condo would mean that you own essentially four walls. You own a unit within an apartment complex. You would hold the title and be responsible for all that was inside of it. Any replacements or repairs would fall to you. When the fridge broke, you would be the one at Home Depot, not your landlord or an unknown corporate head. But you would also pay a monthly fee to the complex, which would cover some maintenance, possibly a few utilities and other odds and ends such as garbage removal.
In a co-op, on the other hand, you would be a part of a multi-family dwelling unit. Rather than owning just the space you lived in, you would have a share in the entire project. You would be a part of a corporation. The monthly fee you paid would encompass not just utilities and grounds upkeep but appliances and inside maintenance as well. Taxes would be handled by the co-op, taken from your monthly fee.
Both options have their benefits. Both have their limitations. What you should choose depends on what you are looking for. If you want an ownership in which you are solely responsible, look for a condo. If you want a more community-like experience, try a co-op. One or the other should meet your needs and give you the satisfaction of ownership.
Jumbo loans will be exempt from the secondary mortgage market where Fannie Mae, Freddie Mac, and the Federal Housing Authority (FHA) purchase mortgages. Those loans between $417,000 and $729,750 – ‘jumbo light’ loans – will not be traded on the ‘to be announced’ (TBA) market, it was announced in a February article at Inman.com, as [...]
Jumbo loans will be exempt from the secondary mortgage market where Fannie Mae, Freddie Mac, and the Federal Housing Authority (FHA) purchase mortgages. Those loans between $417,000 and $729,750 – ‘jumbo light’ loans – will not be traded on the ‘to be announced’ (TBA) market, it was announced in a February article at Inman.com, as well as several other sources, including a press release on the Fannie Mae site. The Securities Industry and Financial Markets Association (SIFMA) worry that the larger loans may raise rates on the smaller conforming loans because of performance uncertainties that would, in turn, raise costs or hinder the trading of all mortgage-backed securities.
Instead, this new class of mortgages will be traded under unique pool codes or included in alternative mortgage investment transactions, specifically the Real Estate Mortgage Investment Conduit (REMIC). SIFMA feels this process will be the least disruptive to the secondary mortgage market for these higher balance loans, creating greater liquidity and interest rate relief to the jumbo mortgagee.
A downside to this placing the jumbo loans in separate pools is that this could delay the lower interest rates Congress had hoped to achieve if Fannie Mae, Freddie Mac, and the FHA had been allowed to by these loans. In fact, interest rates on the jumbo loans have gone up, and are about 1 percent higher than conforming loans.
Guarantees from Fannie, Freddie, and Ginnie Mae backing conforming loans relieves investors’ fears about delinquent payments and defaults. The jumbo loans carry an inherent higher risk. SIGMA wants to keep these jumbo loans in separate trading to belay these risks. As investors get more comfortable with the jumbo loans and the collateral they carry, it’s predicted interest rates will drop on these larger loans over time as well.
In January, the Senate Banking Committee led by Senator Chris Dodd of Connecticut, proposed a plan in which the government would buy mortgage loans from lenders, create fixed-rate mortgages for homeowners and purchase foreclosed homes to either refurbish or demolish, in an attempt to revitalize the real estate industry. Although the group’s exact vision was [...]
In January, the Senate Banking Committee led by Senator Chris Dodd of Connecticut, proposed a plan in which the government would buy mortgage loans from lenders, create fixed-rate mortgages for homeowners and purchase foreclosed homes to either refurbish or demolish, in an attempt to revitalize the real estate industry. Although the group’s exact vision was not realized when the economic stimulus bill was signed in February, part of it was: President Bush raised the cap on mortgages for one year, giving the market a temporary reprieve.
Temporary, however, is not the goal of the Senate Banking Committee, permanent is. With December (the end of the cap) already on the horizon, Dodd and his fellow committee members are once again addressing the Senate. They want a long-term change, one that will allow for new loans and refinancing for years to come. They want the real estate industry to be revitalized for good.
Unfortunately, they face opposition. The Republicans are hesitant to allow for such permanent changes. If the mortgage limits are to be extended federal control, they say, must be strengthened. The government must rein in the companies in order to maintain a balanced and working system.
Time is running short, as only a few months remain with the current cap. How the Senate will proceed remains to be seen. It is hoped that Dodd and the Senate Banking Committee will be able to concoct a plan that both aids the homeowner and the lender, as well as satisfies the opposition.
With the economy’s health in turmoil and the housing industry teetering, homeowners throughout the country are questioning whether they will be able to maintain their mortgages or be forced to foreclose. For many who have neither the money to save their homes nor the ability to change their situation, the latter seems inevitable with no [...]
With the economy’s health in turmoil and the housing industry teetering, homeowners throughout the country are questioning whether they will be able to maintain their mortgages or be forced to foreclose. For many who have neither the money to save their homes nor the ability to change their situation, the latter seems inevitable with no room for hope. At least it did until late January when the Senate Banking Committee, led by Senator Chris Dodd of Connecticut, proposed a plan that would enable homeowners to refinance their homes and switch to government-backed, fixed-rate mortgages.
The effort would be a part of the economic stimulus bill, which already includes the insertion of several hundred billion dollars into the economy via tax cuts, rebates and incentives. The banking committee’s addition would require a minimum of $20 billion. $10 billion would be used to purchase mortgage loans from struggling lenders, at a significant discount. This would enable the government to take over the mortgages and create fixed-rate 30-year ones for the homeowners. The rest of the funds would be used to purchase foreclosed houses. The structures would be refinished and resold or rented, or demolished. This would remove the abandoned, dilapidated buildings in many neighborhoods that are currently weakening the housing market.
If Senate Banking Committee’s plan is incorporated into the stimulus bill, homeowners could breathe a small sigh of relief. They could, in short, stop worrying that their homes were moments from being lost – their shelter moments from disappearing. Moreover, the economy could find a glimmer of hope as one portion of it, the housing portion, was revitalized.
Title insurance is an insurance policy that is meant to protect your property from future claims of ownership by another party. When we “open title” on a property, we start by researching the history of a property as far back as records go. In Texas, that can mean that we are tracing each transfer of [...]
Title insurance is an insurance policy that is meant to protect your property from future claims of ownership by another party. When we “open title” on a property, we start by researching the history of a property as far back as records go. In Texas, that can mean that we are tracing each transfer of title sometimes as far back as the Spanish land grants from the 1800’s. As you can imagine, most property has changed hands many, many times since then by sale, inheritance, marriage, divorce, foreclosure, and bankruptcy to name a few. Most properties have changed shape and size from the original grants that were thousands of acres in size. Every time a transfer happens, there is the opportunity for error in title to arise. Errors could cause a buyer not to have full ownership of a property.A Real Life Example (Names have been changed to protect the privacy of individuals involved.)I recently ran across a situation when a buyer wanted to find out the name and address of the legal owner of a property they were interested in buying. Though the property was not listed for sale, they wanted to write a letter to the owner to see if they were interested in selling. The buyers had done some research in the neighborhood and learned from a neighbor that the owner had recently died. They asked us to find out whether or not this was true and who currently holds legal title to the property.In doing some research, our title department researcher found that the most recent deed to the property was from 1959 in the name of “Joe Johnson.” In 1999 Joe Johnson recorded a document giving “Jane Johnson” his Power of Attorney. Then, researching further, we found a probated will for Jane Johnson. Jane is now deceased. The property taxes are paid current, but according to county records, Joe Johnson (deceased) is still the deed holder, Jane Johnson who had Joe’s power of attorney most recently is also deceased. Now a “Brad Johnson” seems to have some administrative control of the property and is paying the taxes. What we don’t know is if Brad is an heir, and if there are additional heirs who might have a claim to the property.In this situation, the taxpayer may or may not be the owner of the property in question. The potential buyer is requesting more extensive research so that they may write a letter to the current heir / heirs or legal owners. This lack of recorded deed transfer would certainly have to be cleared up before a title policy to a new owner could be issued and the buyer could rest assured that they indeed purchased the property from the legal owner.
Austin’s Sustainable Communities Initiative (SCI) has a mission: “the highest quality of life in the best possible environment.” While this may seem a lofty ideal, the SCI is developing the tools to help this mission become reality.
The main premise of sustainability can be voiced in a couple of questions: will current practices allow a community [...]
Austin’s Sustainable Communities Initiative (SCI) has a mission: “the highest quality of life in the best possible environment.” While this may seem a lofty ideal, the SCI is developing the tools to help this mission become reality.
The main premise of sustainability can be voiced in a couple of questions: will current practices allow a community to exist in comfort, and continue into the foreseeable future as a viable unit? If not, what needs to be addressed so that this objective can be accomplished?
To help answer these questions, the SCI outlines three factors of sustainability: environment, economics, and social equity.
Consuming resources without considering their renewal is the antithesis of sustainability. Maintaining respect toward available resources, acknowledging the responsibility of each member to use these resources conservatively, and the desire to allow each member equal access to these resources are the cornerstones of a green-built community.
It may seem to be a tall order to comply with the requirements for green living, but the SCI has some fairly simple suggestions each person can do to work toward sustainability.
When building or remodeling, consider using recycled materials; employ energy-efficient utilities and materials.
Purchase locally and organically. Seek out farmer?s markets and organic producers. Or grow your own!
Get informed about green building. Find out more about the Austin Neighborhood Planning Program, which offers assistance in planning sustainable neighborhoods.
Sustainable energy, like a perpetual motion machine, produces energy without consuming resources. Electricity can be produced using renewable resources such as wind, water, solar, geothermal, and biomass.
It might strike one as odd that Texas – a big oil producing state – would be at the forefront of alternative energy development. Though perhaps not so [...]
Sustainable energy, like a perpetual motion machine, produces energy without consuming resources. Electricity can be produced using renewable resources such as wind, water, solar, geothermal, and biomass.
It might strike one as odd that Texas – a big oil producing state – would be at the forefront of alternative energy development. Though perhaps not so odd when you think that, being a large oil producer, Texas would have an expert idea of how finite oil resources are. In this light, the State Energy Conservation Office (SECO) has launched an educational program to promote research and development of sustainable energy sources.
The name of the program, the Infinite Power of Texas Renewable Energy Educational Campaign, is quite a mouthful, but the idea is very simple. Gather all the learning materials and news concerning alternative and renewable energy sources together on one site and present it in an easy-to-access format for the public sector.
The site explains the more familiar renewable sources such as solar panels, wind turbines and hydroelectric plants. It also goes into detail about the lesser-known sources – biomass and geothermal energy – which are coming more into use as the technology is better developed.
Geothermal energy uses the water heated by molten rock inside the earth?s crust to heat buildings or, if high-pressured steam is available, to turn turbines that generate electricity.
Biomass is a resource that’s been in use for thousands of years, as wood for fire. Today, other forms of biomass are being developed for use as fuels such as used cooking oil, gas from sealed landfills, and solid wastes and sewage.
Continued interest in developing alternative fuels technology is best generated through education and information and SECO is definitely on the job.
For additional help beyond explanations, homeowners can look to the Forgiveness Debt Relief Act of 2007, which allows them to retain deductions for private mortgage insurance until 2014. There is hope that a similar bill will be passed in the Senate in the near future.
For many homeowners, the current economy has left them struggling with debt. They are unable to pay their mortgage’s current rates and are thus facing foreclosure. Should this happen much if not all of the debt may be forgiven, and in some cases the homeowner may accrue more money than what was owed. He would be left with a lump sum that would have varying tax implications depending on how it was gotten.
For this reason, the IRS has created a Web site explaining each possible situation and how the funds should be handled. In nearly all situations, any moneys beyond those that were owed would be taxable, but there are some instances in which that is not the case. For instance, if the debt were erased through bankruptcy, it would not be considered taxable income. Similarly if the indebted were insolvent meaning his liabilities exceeded his assets, it is probable that at least a portion of the debt would not be taxable. Farm debts, depending on the nature of the loan, as well as non-recourse loans and forgiven debts would also not be taxed. Full details can be found at the page, “Questions and Answers on Home Foreclosure and Debt Cancellation.”
Building to “green building” specifications is all well and good, but what if the very things that make this building green are an invitation to a pest invasion? A group of experts met recently in Dallas to discuss ways of incorporating integrated pest management concepts into the design and building of certified green structures.
The three-day seminar was hosted by AgriLife Extension, a division of the Texas A&M System, and underwritten by a grant from the US Department of Agriculture. The seminar attendees included not only engineers, builders and architects, but entomologists and pest management experts. Several solutions were discussed, including such simple ideas as screening gaps, sealing conduits for electrical and sewer hook-ups, and creating smaller window ledges that won’t accommodate perching birds.
The focus was to come up with ideas that would eliminate the need for chemical pesticides and poisons, that could easily be incorporated into an environmentally friendly building and qualify for certification under the Leadership in Energy Environmental Design (LEED) system.
Seminar attendees took a break from the discussions to tour Hector Garcia Middle School, a near-by green building designed by Perkins and Will. Keeping the typically tight school budget in mind, the designers opted to use the natural environment to advantage. The building features walls of windows and open spaces, classrooms and labs situated in order to utilize the natural northern light. Exposure to the east and west sun is minimized, lowering the need for indoor cooling.
In spite of the care taken with design and location of specific features at the school, though, mice are an acknowledged problem, apparently entering the building at a gap below some doors, and provided a clear example that the problem of pest management should indeed be addressed during a green building’s design.
As people become more aware of impending climate change and near-future energy crunches, land developers are finding innovative ways to create communities with more sustainability and less impact on the environment. An article in the magazine, Natural Home, highlights a new community in Austin, Texas, as one of these green-built innovations.Renovated from the old municipal airport, Mueller Airport Project mixed-use urban village utilizes the latest in environmentally friendly design. The community has its own power-generating plant, recreation, entertainment and shopping, as well as transit and employment.
As people become more aware of impending climate change and near-future energy crunches, land developers are finding innovative ways to create communities with more sustainability and less impact on the environment. An article in the magazine, Natural Home, highlights a new community in Austin, Texas, as one of these green-built innovations.Renovated from the old municipal airport, Mueller Airport Project mixed-use urban village utilizes the latest in environmentally friendly design. The community has its own power-generating plant, recreation, entertainment and shopping, as well as transit and employment.
Self-sustainability is just one aspect of this village. Recycling and reusing is prevalent: old runway materials are converted to street construction, old hangars are disassembled and reused in new building, historic buildings are converted into public spaces. Homes are built with non-toxic and recyclable materials, and plenty of open green spaces and waterways have been incorporated into the plan.
The residential buildings of the Mueller Project include a wide variety of living arrangements. From single-family dwellings to condominiums, the village offers an option for nearly every lifestyle. For-sale home prices range from $100K to the $600Ks for attached and detached homes. An apartment complex is scheduled for completion in the fall of 2008 and will feature 10-foot ceilings, two swimming pools and a fitness center.
Catellus, the developer of the Mueller project, has 20 years of land redevelopment experience and has transformed old airports, industrial complexes, and abandoned military bases into such communities – self-contained, sustainable, and environmentally friendly villages. Termed New Urbanism, the designs are actually based on traditional old European villages, where retail, living, and recreation space was located within walking distance.
Mueller Airport Project stands as a model for the urban development of the future and points toward one solution to increasing energy crises.
