How long will you be underwater? Timeline to reach desired equity position depends on 3 factors

BY JACK GUTTENTAG, TUESDAY, MAY 29, 2012 Inman News®

Underwater house image via Shutterstock.

About 16 million homeowners owe more on their mortgage than their homes are worth, which means they are "underwater." So long as that condition continues, they have no equity that can be used to help finance the purchase of another house.

On the contrary, they can't sell the house without digging into their pockets to pay the difference between what they owe and what they can realize from the sale net of expenses.

But time heals most wounds, and negative equity is no exception. The principal component of the monthly mortgage payment reduces the loan balance by the same amount.

4 traits of unhappy homeowners Mood of the Market

BY TARA-NICHOLLE NELSON, MONDAY, Inman News®

Stressed woman image via Shutterstock.

As the parent of a newly-minted adult, I can reflect on how much of my advice thus far has been delivered in the negative. "Son," I've said, time and time again, "I've been there and I've done that and here's what NOT to do."

I suspect this might be a theme of any great advice in any realm of life: it's critical to know from those who have gone before what you should do, and just as critical -- sometimes more so -- to know what not to do. In the interest of ensuring that the advice I gave last week on how to be a happy homeowner is comprehensive, then, it behooves me to share some insights on how to be an unhappy one -- in the hopes it will help you avoid this fate.

Where did all the lease-to-own deals go? Despite huge demand, purchase obstacles are plenty

BY JACK GUTTENTAG, MONDAY,  Inman News®

House and keys image via Shutterstock.

Of the 700 or so articles on my website, the article accessed most frequently over the last year has been one I wrote in 2004 on lease-to-own home purchases. This is a combination lease and purchase where the renter/buyer occupies the home as a tenant but has an option to purchase it within a specified period at a specified price. I will call these "LTO" deals.

The intense interest in LTO deals today partly reflects the more restrictive and rigid mortgage qualification requirements that emerged after the financial crisis. This has created a large body of wannabe homebuyers who can't qualify for the mortgage they need to make it happen. An LTO gives them a shot.

Landlord may object to tenant subletting to tourists Rent it Right

BY JANET PORTMAN, FRIDAY,  Inman News®

San Francisco's Fisherman's Wharf image via Shutterstock.

Q: I rent an apartment in a great location in a tourist-heavy city. Frequently, big events come to town, like sports events, conventions and festivals, which attract many visitors, some of whom would prefer to live in an apartment rather than a hotel. I'm planning on moving in with a friend for a few weeks next summer and renting my place to these tourists. I can earn a lot of money from this. Besides a risk to my belongings, is there any downside to this plan? --Randy S.

Think twice before rejecting request for an extension In today's market, sellers may be wise to compromise with buyers

BY DIAN HYMER, MONDAY, MAY 21, 2012  Inman News®

Infinite time image via Shutterstock.

In some cases, your past experience will help you make a good decision about what to do in a current home-sale transaction. But if you rely only on past real estate experience to make decisions about selling a home today, you could end up with an unsatisfactory result.

The old rules, such as they were, don't always work for the current home-sale market. For example, more purchase contracts specify that time is of the essence. In other words, contingencies will be met on time.

How not to get rid of a time share Sellers: Beware of scam artists, upfront fees

BY BENNY KASS, TUESDAY, MAY 22, 2012 Inman News®

Time-share apartments image via Shutterstock.

DEAR READERS: I frequently receive questions about how to get rid of a time share. I must admit that my response thus far has been less than satisfactory. I once suggested that the time share be donated to a church or a synagogue, but several priests wrote and asked that I stop making that recommendation, because the religious groups don't want the expense or the headaches of ownership.

Other readers asked if they could just walk away, and while I reluctantly indicated that was a possibility, I warned that the time-share management could file suit to collect the moneys that were due. This obviously would impact credit ratings.

Resolving dispute over home repair estimates Buyers think sellers' contractor choices are inadequate

BY BARRY STONE, TUESDAY, MAY 22, 2012 Inman News®

Tools and money image via Shutterstock.

DEAR BARRY: We are in contract to purchase a house, and our home inspector found problems with the old steam heating system. A follow-up inspection by a heating contractor revealed a cracked boiler.

The sellers got three estimates for the work, but the expertise of these contractors is questionable, and their bids say very little about the scope of the work.

Listing syndication is not a moral issue Decisions should be based on business model, not emotions

BY GAHLORD DEWALD, WEDNESDAY, MAY 23, 2012 Inman News®

Sermon image via Shutterstock.

I was meeting with a friend of mine who works in real estate. Our conversation, as so many real estate conversations do, drifted into the whole issue of listing syndication.

You know the drill: Trulia, Zillow, Realtor.com, MLS listings on competitors' sites, and so on.

You also know the various arguments that take place around these practices. It's good for consumers. It's bad for consumers. It's good for brokers. It's bad for brokers. It's good for agents. It's bad for agents. And so on.

Refis surge as mortgage rates probe lows Demand for purchase loans lower than a year ago

BY INMAN NEWS, THURSDAY, MAY 24, 2012 Inman News®

Lightning image via Shutterstock.

Homeowners are once again rushing to refinance their mortgages as rates continue to hold at or near record lows, but demand for purchase loans is weaker than it was at this time last year.

Worries that the European debt crisis will trigger another global recession makes bonds and other conservative investments -- including the guaranteed mortgage-backed securities that fund most home loans -- look like safe havens to investors. Increased demand for those investments has pushed yields down.