If you’re involved in the sale or lease of commercial real estate, very often you’ll be asked to sign a “letter of intent.” A letter of intent isn’t a formal lease or purchase agreement; rather, it’s a signed statement that the parties plan to negotiate a deal later that involves certain elements. Because a letter of intent doesn’t seem like a contract – it seems more like a simple handshake acknowledgement that the parties hope to

Starting October 1, 2011, large home mortgages on expensive houses are harder to get – because the U.S. government is trying to gradually play less of a role in the mortgage market. Currently, government-related entities such as Fannie Mae and Freddie Mac guarantee or purchase the majority of home mortgages in the U.S. Lenders are much more willing to provide mortgages if they know the loan can be backed by these entities. However, the U.S. doesn’t

The Fair Isaac Corporation, creator of the FICO credit score, usually doesn’t reveal many details about how missing a mortgage payment will affect people’s scores. But the company recently issued a commentary to lenders that contained some unusually specific information. FICO scores range from 300 to 850. Scores of 750 or higher generally qualify for the best credit terms. Here are some of the newly released details: Being 30 days late on a mortgage payment –

If a government entity wants to take all or part of your property by eminent domain, it’s required to pay you the land’s fair market value. Typically the government will send you a notice telling you what it thinks the land is worth, and offering to pay that amount. Its valuation will usually be based on an appraisal that it has commissioned. Some property owners who get an eminent domain notice rush out and get their

Do landlords have a right to limit the number of people who can occupy an apartment? The answer, as often happens in the law, is, “It depends.” In general, landlords own the property and they can decide how many people can live there. However, a landlord is not allowed to discriminate against tenants based on their “familial status.” (This rule was added to the federal Fair Housing Act back in 1988.) What does “familial status” mean?

Cash is playing a more significant role in residential real estate sales right now than at any time in recent memory. Consider the following: The median down payment on houses was 22% last year. That’s according to a study by Zillow.com of sales involving conventional mortgages in nine major U.S. cities. It’s the highest figure ever since the data started being kept back in 1997. By comparison, just three years ago the figure was 11%. And

The U.S. Department of Housing and Urban Development has proposed regulations that would ban discrimination against gay people in federally-assisted housing programs. The new rules would prohibit lenders from discriminating based on sexual orientation in offering FHA-insured mortgages. They would also prohibit discrimination in HUD programs including public housing, Section 8 vouchers, and multi-family housing assisted through HUD funding. Currently, the Fair Housing Act prohibits discrimination in renting, selling and mortgage lending on the basis of

A new type of reverse mortgage that could benefit some senior citizens has been approved by the Federal Housing Administration. In a traditional mortgage, you borrow money against your house and pay it back in monthly installments over time. With a reverse mortgage, you borrow money against your house, but you don’t have to pay it back until you die, sell the house, or move – which means you don’t owe anything as long as you

The Federal Housing Administration has extended a program designed to make it easier for investors to “flip” foreclosed and other depressed properties by buying them, rehabbing them, and quickly selling them to homebuyers. Ordinarily, investors who buy a property with an FHA-insured loan are not allowed to sell the property until at least 90 days after the purchase. However, the FHA now says it won’t enforce this rule until at least the end of 2011. The