What Exactly Does "Rent to Own" Mean?

In a lease-purchase, you are effectively a renter for some time until you decide to purchase the home. While you lease the property you have to review the document in light of the landlord-tenant relationship. You have to decide who will have to pay for the cost to maintain the property with a view towards those major components of a home that can have problems and then deal with the minor maintenance items.

As a tenant of the property, you need to remember that you do not own the property. You should not invest in the home, make improvements to the home or spend much money on the home until you decide to buy the home and exercise your rights under the lease-purchase and have closed on the home.

When the document deals with the purchase side of the deal, you need to be quite careful. If you are putting money down to assure your seller that you will buy the home, you need to know that your down payment is safe. You also need to make sure that the seller will have the ability to close on the deal when you decide to exercise your rights to purchase the home.
So what do you need to look out for? As a general rule, you need to make sure that the person you are dealing with owns the home and can sign documents with you as both landlord and seller of the home. You also have to negotiate the manner in which the owner will take care of the property and won't take actions that will disturb your living in the home. It won't do you much good to live in the home if the seller treats the home as his and deprives you of your privacy and joy of living in the home.

The owner has to maintain the home until you close on the purchase. If you take care of the ordinary and routine maintenance of the home, your documentation needs to set up a mechanism for you to make sure that (1) the owner has homeowners insurance to pay for damage caused to the home by a casualty, (2) the owner is current on his mortgage payment to avoid losing the home to the lender, and (3) the owner is current on his real estate tax payments and homeowner association fees and dues to avoid losing the home to the taxing authorities or association.

If the owner fails to keep any of these items current, you could find yourself homeless in the future even if you have been a model tenant.

If the owner maintains the home, pays the real estate taxes, mortgage and homeowner association payments, you should be in a good position to close when you decide to purchase the home in the future.

But you also need to treat the home as a purchase at some point in time; your documentation for the lease-purchase might require the seller to provide you with a title insurance report. Depending on the lease-purchase arrangement and how serious you are about buying the home, you might be better off knowing early on whether anything affects the title to the home now rather than later.

If you lease the home and wait a year or two to review the title to the home, you might be surprised by what you find. While you might not be obligated to purchase the home if the title report shows something you don't like on the title, you will not have wasted a year or two in a home you can't or won't purchase.

Lastly, any money held by the seller for the purchase of the property should be held by a third party that can hold the money and would not disburse that money until the deal closes, or if you decide not to purchase the home, the deal dies and you move somewhere else.
These are just some of the issues to look out for; work closely with your real estate professional when you are drafting the documents to avoid any surprises later on.

Joan Rogliano is an expert in guidling her clients through the real estate transaction process. For more information email joan@roglianorealestategroup.com or visit her websites at www.roglianorealestategroup.com or www.wildflowergroup.com.

A Thanksgiving Treat From the Feds

Happy Thanksgiving – Mortgage Rates Plunge Finally, some good news for the mortgage industry!

In a move to increase credit availability, the Federal Reserve and Federal Home Loan Banks announced that they would purchase up to $600 billion in Mortgage-Backed Securities (MBS), exciting news that sent interest rates for 30-year fixed-rate mortgages plummeting below 6.00% and near the lows for the year!

If you have been on the fence about buying or refinancing a home, now is the time to act. Interest rates are extremely low and home prices in some areas are at 2003-2004 levels. Add to that recent declines in energy prices and lower consumer interest rates, and you have a great holiday recipe for success. And don't forget about the bonus that will come after the holidays - the $7,500 homebuyers tax credit!

Don't wait too long to make a move. Rates have already been very volatile and this opportunity might not survive the holidays. In many markets, falling prices are bringing out buyers that have been waiting to buy and they are scooping up both bargains and hot properties.

For more information about real estate in your area contact Joan@roglianorealestategroup.com or visit her websites at http://www.roglianorealestategroup.com/ or http://www.wildflowergroup.com/.

Divorce and Your Real Estate

For most couples the family home is the highest valued asset they will have to divide in their divorce. Its division is usually fraught with controversy for varying reasons. It may be difficult to value, is not readily converted to cash, costs a substantial amount of money to maintain and has implications of federal and state tax liability.

As if all those things were not enough, your family's emotional attachment to your real estate, in particular a family or vacation home can cause you to make an irrational or poor decision at the time of the divorce. Your family may be haunted by that decision for years after your divorce.

Some questions that you need to answer are:
· Should you sell the family home?
· Do you keep it until the children are grown?
· Should you keep the home and buyout your soon to be ex-spouse, or vice versa?
· Can either of you afford to keep it after the divorce?

The answers to these questions and others can help you avoid or plan for problems associated with your real estate. Historically, the family home is the asset that most often causes controversy both before and after a divorce.

The principal reason for this problem is the timing of the sale of the home and the division of the net proceeds. Both events frequently occur some time after the divorce. In addition, couples seldom plan as they should for the payment of household maintenance and upkeep during the divorce. At first glance the family home appears to be the easiest asset to identify and describe. For purposes of a divorce, the description of your ownership interest in your home and other real estate can be very complicated with pitfalls for the unwary. As with the division of personal property, the rules and laws regarding the division of real estate vary from state to state.

There are several key factors about your real estate that affect the handling of the asset or the distribution of the net proceeds from the sale of the asset in a divorce.

The factors are:
· identification of the type of real estate and the type of ownership interest you have
· the ownership history of your real estate
· real estate, income and capital gain taxes
· Value and debts, such as loans and tax liens, that are secured by the real estate
· A plan to pay for and maintain the real estate during the divorce and afterward

Most importantly be sure to seek the guidance from trained professionals. Be sure to choose not just an attorney but a CPA, Financial Planner and Real Estate Professional to assist you in analyzing your options to come up with a new plan for our future.

Joan Rogliano is not just a Realtor but she created the Wildflower Group, an organization that strives to empower women with practical information about real estate investing and home ownership. Please visit the Wildflower Group web site for the next free workshop information www.wildflowergroup.net.

The Nutcracker Opens on November 28th in Denver

When a ballet has been performed for over 100 years and still gives audiences goosebumps, you know that the spirit of the season must truly live on this stage.

The Colorado Ballet celebrates its 48th season of bringing world-class quality dance to Colorado. As one of the state's oldest and most successful arts institutions, Colorado Ballet is the only organization of its size and stature to produce classical ballet.

Colorado Ballet is a nationally recognized regional dance company that was conceived as a ballet school, and founded in 1951, by Denver natives Freidann Parker and Lillian Covillo. To showcase their talented students, the life-long friends established Colorado Concert Ballet in 1961. The company presented its very first production of The Nutcracker at the Bonfils Theater in Denver to sell-out audiences.

Colorado Ballet is now one of the foremost arts organizations in the region. With a company of 32 professional dancers of national and international acclaim, 17 studio company dancers, a $6.6 million operating budget, an expansive repertoire, and the Academies of Colorado Ballet, Colorado Ballet is a highly regarded ballet company.

For more information call (303) 837-8888 or visit www.coloradoballet.org.

Housing Market in Recovery

With all the bad economic news in the headlines lately, you can easily lose perspective on what's really going on in the real estate market.
Here is something to keep in mind: The stock market is NOT the housing market. The Stock Market is on a whole different set of tracks and it's been in a highly volatile state for more than a month.

Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.
For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.

How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing -- especially from first-time buyers who want to scoop up low-priced deals. This along with the $7,500 Homebuyer Tax credit and the drop in interest rates buyers are staring to come out and are ready to shop for a home.

Fixed thirty year rates fell from six and a half percent to 6.24 percent during the week. Fifteen year rates broke below six percent to 5.9 percent, down from 6.14 percent.
Another piece of positive news you may not have noticed: Pending home sales were higher than year-earlier levels for the second straight month -- 1.6 percent higher than September 2007.

All these facts add up to some good news for buyers and sellers which translates to good news for our economy!

For more information contact joan@roglianorealestategroup.com or visit Joan's website at http://www.roglianorealestategroup.com/ and http://www.wildflowergroup.com/.

Foreclosure Prevention Assistance Fair Event

November 22, 2008 - 9:00 a.m. - noon

Larimer County Fairgrounds

Loveland, Colorado

The Colorado Civil Rights Division of the Department of Regulatory Agencies (DORA) will participate in the Foreclosure Assistance Fair to be held on Saturday, November 22, between 9:00 a.m. and noon, at the Larimer County Fairgrounds and Events Complex in Loveland, Colorado. DORA's Civil Rights Division and the Division of Real Estate will partner with other organizations, such as the Colorado Foreclosure Hotline, one of the event's sponsors, to provide education concerning risky lending practices and foreclosure assistance. Along with numerous organizations addressing the topics, representatives of the Civil Rights Division will be providing information regarding discriminatory lending practices to consumers.

DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission.

For additional information feel free to contact Joan@RoglianoRealEstate.com. http://www.roglianorealestate.com/, http://www.wildflowergroup.net/.

New Tax Law Impacts Turning Rentals Into the Family Home

Property owners need to be aware of the tax law change that will go into effect January 1, 2009. This new law changes the how one is taxed when they turn a rental property into a primary residence.

Currently, if the property is sold at least 2 years after the date of the original purchase, and it is owner occupied at the time of the sale, you may apply the full $250,000 exclusion against the gains.

Under the new tax law this would not be the case. You are still eligible for an exemption if you sell a property at least 2 years after the date of original purchase, and it is owner occupied. However, you may be subject to capital gains based on the percentage of time the property was used as a rental. You will also have to pay tax on depreciation recapture.

One of the great things about building a real estate portfolio is that when life changes occur it gives you more options. Making the decision to live in a former rental property is an excellent solution to many situations. However, you do need to be aware of the tax implications when making such financial decisions. This is especially significant when it is a divorce situation. When determining the value of the properties at the time of the division of real estate, these tax consequences need to be accounted for to ensure a true accounting of the value of the assets to be divided. There is more to the value of a home than an amount determined by an appraisal.

Over the past 26 years, Realtor® Joan Rogliano has worked with many women going through the emotional and financial trauma of divorce and widowhood. That's the inspiration behind the Wildflower Group, an educational outreach program that seeks to educate women in transition about the choices available regarding their home and finances. For more information visit www.wildflowergroup.net or email joan@roglianorealestategroup.com.

Grocery Shopping Tips

With food prices still soaring, supermarkets are offering many deals and specials to lure in food shoppers. But sometimes, these good deals can actually cause people to spend more than they would have otherwise. Phil Lempert, author of Being the Shopper: Understanding the Buyer's Choice, offers these smart-shopping tips:

Limit Four Per Person: Scarcity can have a powerful impact on shoppers. A buying restriction can tempt people to buy more than they need, which could cause items to either spoil or sit in your pantry for a long time. Tip: In the long run, when you factor in the amount of products that spoil or are eventually thrown away, you will usually be better off financially if you only buy the amount you reasonably need and can use.

End of Aisle or Freestanding Displays: Often the "specials" displayed on the end caps of each aisle or on an island display aren't really the best deals that the store currently offers. These displays may also lead to impulse buys that you weren't intending to make. For instance, a display with graham crackers, chocolate, and marshmallows could make you think, "I'll make s'mores for dessert." Tip: While the location of these items is convenient, especially during busy shopping hours, you should only buy these items if they really are good deals.

Buy One, Get One Free: While these deals can make you feel like you are getting something for half price, if the cost is more than that of a similar item...or if you don't need a large quantity...than this may be one special worth passing on. Tip: Ask the manager if you can buy one item for half the price instead of buy one get one free. While stores don't always advertise this alternative, they often allow it.

Pre-Sliced Produce: While pre-sliced produce can feel like an easy choice, it can cost twice as much as whole produce, and can spoil faster than whole produce. Tip: Pay extra for prepared meals and produce only if the time and effort they save you is significant and really worth it.

For more great grocery shopping tips, visit http://www.supermarketguru.com/.

Five Mistakes Married Women Make

Here are five common financial mistakes married women make — along with some advice on how to avoid them.

1. Mistake: Handing Over the Purse Strings By not engaging in the family finances, women set themselves up for potential hardships. Many women who managed their finances perfectly well while they were single, fail to stay informed after they got married which could lead to financial hardship.

Solution: Pay Attention to the Household Finances Both partners should attend the meetings with insurance agents, accountants, financial planners and lawyers. Women should also look over monthly bank statements and credit card bills and couples should make a list of all bank and brokerage accounts and insurance policies and keep it with other important documents, such as wills and medical directives.

2. Mistake: Losing Your (Financial) Identity Many women close out their old accounts and use joint accounts. Although there is some practicality to this it may result in you losing your own individual credit rating.

Solution: Maintain Some Individual Accounts You always want to maintain your own credit identity. It is recommended that couples keep three bank accounts (his, hers and ours) and maintain separate credit cards.

3. Mistake: Walking Away From Your Career While you might welcome the chance to stay home with your kids, the longer you're out of the work force, the harder it can be to jump back in. Women often face low ball wages or lower job titles when they try to return to work after a long hiatus.

Solution: Keep Your Skills Fresh It might be hard to do when you're up to your eyeballs in dirty diapers, but unless you're independently wealthy, you should always be aware that you might someday return to the work force for one reason or another. (Kids, after all, do grow up.) So don't lose touch completely. Try to take on consulting projects during your industry's busy season and attend professional networking events. Even charity work can give you a leg up when you start applying for a new job.

4. Mistake: Not Saving for Retirement Many married women don't make retirement-saving a priority. If the husband is the primary wage earner, the wife often trusts her spouse to save enough for their collective golden years

Solution: Penny-Pinch Now for Your Future Make saving for retirement a priority even if it means stashing away less for your children's college education. If you're working, save as much as you can in your company's retirement plan, or in an IRA. If you're not employed, contribute to a spousal IRA.

5. Mistake: Asking for the House During a Divorce Women often focus so intently on winning custody of the children or keeping the house that they lose sight of the bigger financial picture. Many fail to look at the entire financial picture including what their life will be like after the divorce.

Solution: Get Financial Guidance When women are going through a divorce, they need to determine which assets will help them pay their bills and reach their long-term goals. Some women might want to consult a financial planner as well as a real estate professional that specializes in these situations.

Joan Roliano is a professional realtor who specializes in guiding women through the divorce process and provides individualized counseling to see that her clients make the best choice for their family and their future. If you would like like additional information please contact joan@roglianorealestate.com.

Last Weekend to see Presidential Hopefuls Exhibit

The Presidential Hopefuls

Where: Littleton Historical Museum – 6028 S. Gallup St., 303-795-3950

This Friday, Saturday and Sunday from 8:00 AM – 8:00 PM will be the last time to get a glimpse at this free exhibit at the Littleton Historical Museum.

The Presidential Hopefuls is a fascinating look at American politics, and the men who gave the presidents a run for their money, sometimes returning to win a later election. The show highlights military heroes who became candidates, incumbents who lost, and the fluctuating costs of running a campaign.

The office of the U.S. Presidency is the most coveted in the land, offering the highest recognition to those who claim it. But what about the candidates we never hear about -- the men who also ran and lost? The biographies featured shed new light on American history and the electoral process. Between 1900 and 1920, for instance, tenacious and undaunted Eugene V. Debs ran for president five times. Candidates have come from over thirty parties, some well-known and some obscure -- such as the Down with Lawyers, the American or "Know-Nothing", and the Greenbacks. In our own recent history, Dr. Benjamin Spock, pediatrician to a whole generation of baby boomers, ran for president in 1972 as a member of the People's Party and the Peace and Freedom Party.

This exhibit explores the often neglected stories behind the candidates that lost through original cartoons, sheet music, and memorabilia. It gives viewers a chance to speculate to what extent history might have been rewritten had another candidate occupied the oval office.
This exhibit would be great for students and history buffs of all ages!

For additional information please feel free to contact Joan@roglianorealestate.com.

Money, Stress & Divorce

Financial Downturn May Become a Threat To Your Marriage

According to Jacqueline Detwiler of Forbes Magazine marriage and money are inextricably linked in America, from how married people are taxed differently all the way to the perception of those who married for money, or earned it or lost it once they were married. In economic times like these, it's only natural to wonder what happens to the family when the family finances take a nosedive.

The bad news is, statistically, money is typically the driving force behind a marriage meltdown. The good news, however, is that it's not everything. In other words, a marriage surviving a downturn depends more on what a couple's finances and relationship were prior to the downturn. Financial compatibility and open communication is the key to staying together.
In polls of what couples fight about, money is regularly in the top three reasons for marital discord--and that's especially the case among people who have a lot of it. A Prince & Associates survey of 93 divorce lawyers for high-net-worth clients found that 83% of wealthy people would call it quits if their finances drastically deteriorated.

Financial conflict isn't limited to the rich, however. Nationwide, stress over housing costs and job stability have increased by 6% and 8%, respectively, since April of this year, according to the American Psychological Association's Annual Stress in America poll. And with all that increased stress comes the increased likelihood of irritability, anxiety and depression, all of which can take their toll on interpersonal relationships. So can missing out on the fun couples feel they've earned together over the years.

Even couples who haven't experienced major financial repercussions as a result of the downturn might clash over funds. Most fights begin with a disagreement about financial strategy. One partner may tend to save and worry, while the other might spend extravagantly without considering the consequences. When there isn't as much of a cushion, those differences can spark fights.

Although people might not want to hear this right now, there is potential benefit in the current economic situation for couples and families to band together and get down to the basics of what is important to them. The key is to take stock of your goals and keep the lines of communication open.

Joan Rogliano is an expert in the field of navigating individuals through divorce and their real estate transactions. For additional information feel free to contact Joan@Roglianorealestate.com.

The New Home Ownership Tax Credit May Be What You Need to Get On the Path to Homeownership

When you combine the tax credit with today’s low interest rates, wide selection of inventory, and affordable home prices, many of the pieces are in place for you to buy now.

Here are 6 things you should know about the $7,500 how ownership tax credit:

1. Buyers have until July 2009 to make a purchase that qualifies.
The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009.

2. Buyers don't really have to be "first-timers."
The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years.

3. Even if buyers exceed the income limit, they can benefit from the credit.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500. Sounds like a great deal. But what if you make more money than the income limit of $75,000 for individuals and $150,000 for households? Good news: Individuals whose income exceeds the $75,000 limit but don't make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000. By the way, any house is eligible as long as it’s a primary residence and is in the United States.

4. Think of it as an interest-free loan.
The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

5. You don't have to be authorized before making a home purchase.
There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.

6. New-home construction qualifies.
For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home.However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.

If you would like additional information feel free to contact joan@rolianorealestate.com.