Due-On-Sale Clauses Can due-on-sale clauses prohibit the transfer of property with loans to spouses or children? Q: The Garn-St. Germain Act prohibits enforcement of a due-on-sale clause in a transfer where the spouse or children of the borrower become an owner of the property. Does the "transfer" mean inherit, or does it also include "sale" [...]
Avoiding Capital Gains Tax When Selling Vacation Home Q: We are selling a vacation home. We were told that we should put some of the money from the sale of the property into a 1031 to avoid paying a 28 percent tax on the sale. Is there another way to avoid paying capital gains tax? [...]
Selling Rental Properties? Real estate investor wants to know if he should sell his rental properties and invest the proceeds elsewhere Q: I am 60 years old with a pension. I've invested in rental properties in the past and currently own six rental properties. I have no mortgages on these properties and paid around $100,000 [...]
Fixing Water Issues His neighbor's water freezes on the driveway but he won't fix the downspout and the HOA won't get involved. Q: I live in a townhouse cluster governed by a homeowners association (HOA) and a master community association. I have been having an issue with a neighbor’s downspout. I’ve noticed a large amount [...]
Mortgage due but daughter isn't paying. Is the IRS a threat? Q: I lent my daughter money to buy a home. It's been a couple of years since she made a payment to me. That’s mostly due to Covid shut-downs of her work and her health issues. Her home has continued to appreciate. I am [...]
Q: I am a homeowner in my early 70s. We purchased our current home a little over a year ago in a rural area of Wisconsin. We are considering going solar in order to better control our electric bills. There are tax and rebate incentives that make the upgrade to our home lucrative on paper [...]
What is a reverse mortgage? And, why does a reverse mortgage hurt rather than help an elderly homeowner? Q: I was recently evicted from my home, where I lived with my mother before she died. This is due to a reverse mortgage. I am disabled and now have no home. My mother signed this loan [...]
HOA: Can we shut down our HOA? What can a small community do if no one wants to step up and manage the homeowner association? https://www.youtube.com/watch?v=vCg1nR3GzfU Q: We live in a small townhome community of 24 houses in Maryland. We have a homeowner’s association (HOA), and it is generally very mellow, without any [...]
What are some common homeowner association problems? So many homeowners have problems with their homeowner association. Whether you live in a condo, co-op, a townhome or subdivision, each version of a homeowner association has a set of common problems that everyone will face. Sometimes it's mismanagement of the homeowner association itself or the association hires [...]
Selling a home outside the U.S.? You may owe taxes to the IRS. Q: I sold my house in my home country of Guatemala last year for around $90,000. The buyer paid me half of the sales price by wire transfer to my United States bank account. The other half was paid to me to [...]
