Q: The buyers of my home in Bustleton were supposed to make settlement today; however, their mortgage company says they cannot do it until Friday. I took off today and I can’t take another day off to do this. I am worried that it’s not going to happen at all. Is there a way to make them do it today?

A: The seller in every real estate transaction hopes to make it to settlement on the day promised, and that the mortgage company and the buyers have been submitting the paperwork necessary to close the loan on time. But sometimes, and with some buyers or lenders, it just doesn’t work out that way. continue reading »

 Q: Someone told me that the house down the street from mine in Parkwood was foreclosed on and for sale by the bank. I am not happy about the foreclosure, but I would love for my son to buy it. There is no for sale sign on the property, but I can tell it’s vacant. How can I find out if it is for sale?

A: It’s unfortunate to have a foreclosure in a neighborhood. But while it’s a drag on home values, the flip side is that it could be a deal for some lucky homebuyer. Many times there is a lapse between the time a home is officially foreclosed on and the time the bank lists it for sale. It could be months or even years, depending on the bank. continue reading »

2011 seemed to fly by and if you did not do any planning this year, it is not too late. Some of the opportunities are related to taxes, while others are more retirement estate planning oriented.

I usually counsel folks that if they are going to do anything, it is really important that they make their 401k and/or IRA contributions. For many, it may make sense to make Roth IRA contributions, as these contributions will grow tax free into the future – and any distributions will be completely tax free. The benefit of making these contributions will be significant over time and this money will be their primary means of support in retirement. continue reading »

Q: I bought my house earlier this year. I’m putting my taxes together early and my accountant said he needs the HUD-1 from settlement. I don’t know what that is and can’t seem to find anything like that in my paperwork. Maybe they didn’t use one. Help!

A: The HUD-1 is the government form used by the title company or lawyer at settlement to document the transaction. It’s a standard form that spells out all the charges to the buyer and the seller, how much money a buyer needs to bring to the table, and how much money a seller will receive, if anything. continue reading »

This will be Rev. Jim Rudd’s final column for NEast Philly. We wish him all the best as he focuses his attention on his True Vine Church Community in Wissinoming.

Have you ever met a person who has opinions on every topic under the sun, whether they are informed or not? Or maybe a person who dominated every conversation so that no one else could get a word in?

Have you ever had to settle conflict with a person who seemed more interested in being heard than listening? Have you ever been that person? I have.

There is an old Jewish proverb that says, “A fool takes no pleasure in understanding, but only in
expressing his opinion.”

According to this proverb, I have known many fools and at times have played the role of the fool. continue reading »

Q: I own a few row homes in Castor Gardens that I rent out to tenants. I am aware there is currently a bill in City Council that would require certification that the property is lead free before a tenant moves in. I am hearing this will be costly, but I am a smart investor, so I will just pass this cost down to the new tenants. My question is will I have to certify the properties currently rented are lead free?

A: There is a public hearing on this bill today at 1 p.m. I believe the legislation that is currently proposed calls for lease renewals, as well. Check Lead Based Paint Ordinance #100011. The bill, as proposed, would also require home sellers to obtain a certification prior to selling a home built before 1978 in the City of Philadelphia. continue reading »

The reports from retailers indicating that Black Friday revenues were 7 to 14 percent more than last year were encouraging from an economic perspective, but it could be disastrous for consumers who may be adding more debt that they cannot afford to their personal balance sheets.

Since the recession of 2008, consumers have been doing a good job of reducing their debt levels. However, many people are still out of work, and in Philadelphia specifically, the unemployment rate is still hovering around 10 percent versus 9 percent for the entire country. continue reading »

Q: I’m selling my deceased mother’s home in Mayfair and the title company is asking for an inheritance tax return. I’m happy to provide everything they are asking for, but why do they need the inheritance tax return?

A: When conveying the title of a home to a new owner, the title company needs to make sure the property is clear of any encumbrances, liens, unpaid utility bills and mortgages, etc. If you’re the executor or administrator of an estate, the title company will need proof that you’re legally able to sell the property and that you’ve paid inheritance taxes. If no inheritance taxes have been paid on the property, they will escrow money to pay the taxes due at sale. continue reading »

Q: I made an offer on a property in Holme Circle that is a “short sale.” It has been six months and still NO REPLY from the seller’s bank! The real estate agent told me it could take awhile, but now I feel like she is not doing enough. Is she giving us the run-around? How do I know if the bank ever really got my offer? How long is this really supposed to take?

A: Despite its name, a “short sale” is anything but short. The short part of short sale means the seller is not paying off the entire loan, and lenders don’t easily approve of that. For the buyer, it would be more accurate to call it a “Take-forever-and-even-then-you-might-not-get-it Sale.” That is the main reason why these homes are priced much less than others in the market. continue reading »

Life insurance is something we hope we never need, but really need to have. The number of families that
have little or no life insurance is startling. I see it every day as I meet with people in the Northeast and the
surrounding area. Here are some things to keep in mind to mind as you consider your own situation.

First, there are several different types of life insurance; our focus today is in on term insurance.

Many employers offer a base level of coverage, which could be flat dollar amount ($10,000 or $20,000), or one times your annual salary up to $50,000. Most companies will not offer company paid coverage above $50,000, as they are generally limited to a tax deduction for the premium cost up to $50,000. In many instances, the premium cost for the insurance is higher than you would pay to purchase your own policy.

Second, if you leave your job, your life insurance will either stop immediately or within a few weeks of your
separation. In this economic environment, it could take some time to secure another position, and if you have no other coverage, you will be at risk during this period. continue reading »