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Kent Said:

Can I afford to purchase an apartment?

We Answered:

I'd be very cautious. 20 years is a long time and if you want to move or need to move and needing to rent the apt out in order to avoid repaying the 50K loan could be a mess. Another thing to consider is assessments. If the building is foreclosing, maintenance could have been neglected and expensive things like the roof, or termites, the furnace or boiler, could be on the verge of implosion. Apartment owners need to chip in to pay for these big ticket items, and they can be thousands of dollars.

Tony Said:

This year i plan to start a small business as well as a rental property, I have a few tax questions?

We Answered:

When renting out real estate, these are the expenses you can take to offset your costs: Mortgage Interest, Insurances, Utilities, costs of finding tenants (advertising fees, credit checks etc), repairs,depreciation of the building and any furniture and fixtures you have placed in the home.

You can expense repairs such as painting, fixing plumbing etc. If you replace something such as the carpet or a toilet, you have to depreciate that new asset you placed in your rental. Any capital improvements you put into the house should be depreciated over 15 years. The building can be depreciated over 27.5 years.

If your business uses a building you own, it can pay rent to you and you would claim it on Schedule E of your 1040. Any expenses you incur (not your business) would be deducted from the rental income you report on Schedule E. If the business pays for any of the expenses related to the rental, the business would deduct them and you'd put that income and deductions on Schedule C.

Check out the IRS's website for small businesses to get answers to any specific questions you may have: http://www.irs.gov/businesses/index.html

Darlene Said:

What is the answer to the rising cost of healthcare?

We Answered:

should have moved to canada.

Daniel Said:

IS IT LEGAL for GMAC Mortgage Co to charge us insurance for last year that we didn't know about ?

We Answered:

Well, I read that you weren't advised that you didn't have adequate insurance for 2008/09 until they advised you that you needed more insurance for 2009/10 also ? Am I reading this right ? And only then only when you went out to get your own insurance at half the cost ? Right there ? So they didn't come up with this cost for 2008 until they found out that they couldn't get you for the 2009 year. That really smells rotten to me !

It sounds to me that when they didn't get you for the 2009 year that they went back to get you for the 2008 year, and that is just not legal to charge you now for insurance that didn't happen then. They would have had to advise you at that time. Call your lawyer.

Gabriel Said:

What are some options that Mortgage companys or banks gives you when you have trouble making mortgage notes?

We Answered:

You can always refinance at a interest only, and have a lower payment, until the time of when you sell your home. Just make sure you have a no- pre payment. The rate will be slighly higher, but well worth it, so you will not be paying 2-5 percent of the loan amount back to the lender.

You can call your lender and see what options they have...

You can give a incentative to your buyer by offering to pay 6 percent of their closing costs - so they have no closing cost associated with the loan, except for the appraisal fee.

You can call around for insurance quotes from may of the different insurance companies out there on the www and see what they quote you. A higher deductable may be in order to get a lower payment for the ppl looking at your home. Give the information you gather to your realitor...that may be a selling tool.

If you refinance, you will not have a mortage payment for 2 months, that is helpful to you. Not a fix, but a quick fix if money is tight, you could go ahead and take out equity in your home, and pay off your debit, to free up more money monthly...Such as auto, credit cards, medical bills, etc.

Also: http://articles.moneycentral.msn.com/Ins…

Smart moves for homeowners
So how should a homeowner navigate this post-Katrina insurance world? Here's what to keep in mind

Don’t attract attention. In the hurricane states, many insurers that haven't already decamped are looking for excuses to boot unprofitable customers. Any homeowner who files small or unnecessary claims is asking for trouble.

Even in less problematic states, homeowners would be smart to keep their deductibles high and avoid water-related claims. The more attractive you are to an insurer, the better deal you'll get.

Cover smart. Many homeowners are underinsured because their coverage limits haven't kept up with rising building costs. The hurricanes also showed too many homeowners are doing without flood insurance even when they're at high risk.

Pick a good company. Even if it miscalculates risk, a large, financially sound insurer will still be around to pay its claims after a catastrophe. The same may not be true of some smaller and poorly capitalized firms. You can use any of the ratings agencies -- A.M. Best, Fitch Ratings, Standard & Poor's or Weiss Ratings -- to help you select a strong company. But a strong company doesn't help if it doesn't pay claims in a reasonable manner. Check with your state's insurance office, which tracks complaints, to see which companies to avoid.

Build smart. If you're building or remodeling a home in a potential disaster area, invest in improvements that strengthen your house. Simply using more nails, screws, fasteners and bolts can help your home endure a catastrophe, making it safer and you far less vulnerable to skyrocketing rebuilding costs. Such improvements might even win you a discount on your insurance.

Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.

The above was Found under MSN Money.

Also: What Does Homeowners Insurance Cover?
You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks’ worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.

If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn’t a great idea because if your home burns down and you weren’t able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.

Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year’s at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.

If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.


This article is interesting, maybe you can check out this insurance company??
Florida Insurance Commissioner Kevin McCarty rejected a request by Citizens Property Insurance Corporation (Citizens) to increase rates in Monroe County and ordered it to reduce homeowners insurance rates for the area.

By law, Citizens rates have to be higher than private insurers’ rates in all areas of the state. However, Monroe County has been found to not have a competitive insurance market, therefore rates are only required to be actuarially sound. Citizens is the state-run insurer for those who cannot access insurance in the private market.

Apparently, Citizens is being ordered to take a
-32 instead of getting their request for a +26, based primarily on differences in cat models.

Now, what I’d really love to know is does this create a situation where homeowners insurance is now cheaper in the Keys than in coastal portions of (say) Miami-Dade County.


Now, If you are thinking of buying in the future, after you sell your home or refinance, please consider this:
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Good luck to you, people do care....