You can exercise a degree of control over your return on investment by utilizing a self-directed IRA with a custodial account arrangement. I have found it to be significantly more predictable than the stock market. What I did was roll over a portion of my existing IRA account into a custodial account with Equity Trust, an institution headquartered in Ohio. Since I began, I have bought, rehabbed and sold 3 properties. The custodian takes title to the property, pay all bills, receives all rents and all proceeds in the event of a sale. At no time, do you “constructively receive” any funds. You will pay no tax on the gain as all of this activity is legally occuriring within the confines of your IRA. If you are getting work done on a property, it must be performed by paid contractors. You are not allowed to do the work yourself. I have found Equity Trust easy to use most of the time. I had one or two slip ups that were annoying at the time but overall, they have functioned in a manner that is acceptable. If you look at some of the forms on their web site, you will notice that you can buy and sell any commodity within their framework – boats, gems, etc. If you have other questions, feel free to contact me at [email protected] or 716-481-9959 if you have any questions.
As of August 1, 2011, the Department of Housing and Urban Development (HUD) announced an amendment to extend the forebearance period for unemployed homeowners from 4 months to 12. Forebearance is a special agreement between lender and borrower to delay foreclosure for non-payment. HUD secretary Shaun Donovan says, “Today 60 percent of the unemployed have been out of work for more than 3 months and 45 percent have been out of work for than six. Providing the option of a year of forebearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home.”