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Redemption Laws Seen Complicating Settlements Serious Problems Thrust on Income Property Managers State mortgage laws which pro vide redemption periods following a foreclosure sale cause serious legal and fiscal problems which hardly could have been contemplated by the legislators who framed the stat utes. the Journal of Certified Prop erty Managers points out in its recent issue. The laws, the magazine states, lump together the two-person re lationship of debtor and creditor common in the cases of mortgages on homes and farms with the com i plex relationships existing for large income properties where large num bers of security holders own small amounts of mortages totaling mil lions of dollars. In the 20 or more States where a redemption period exists managers of income proper ties reorganized or in the course of reorganization are confronted with special and serious problems. When the mortgagees or their nominees bid in the indentured property at the foreclosure sale, title to the property does not pass until the expiration of a period fixed by statute. In most States the length of this period ranges from 12 to 24 months. Steps Outlined. Steps which should be taken by managers of reorganized properties and cautions in regard to legal com plexities they must hold in mind In fiscal and administrative control of the property during the redemp tion period are set forth in detail in the current issue of the journal, published by the Institute of Real Estate Management, professional branch of the National Association of Real Estate Boards. John E. Cornvn and David Keith, both of the staff of George Rosset ter <fe Co., Chicago, present step by step the decisions the manager must take, using a hypothetical case but reviewig situations that are encountered and decisions that have to be met in thousands of cases in Slates where statutory re demption periods exist. They out line legal boundaries, accounting problems and the like of the prop erty manager of the “Claremont Apartments” through reorganiza tion. in the critical step of fixing the bid at the foreclosure sale, in the complication presented by con tinuance of the receivership through the redemption period because of the existence of a deficiency judg ment and through the point where the titlp was transferred. Il.l II IjIIU* llrl imuns Emphasizing the delicacy of man agement judgment required in de termining what the amount ol the bid should be on an income prop erty at foreclosure sale, the writers eay: "The bid price at the sale must be sufficiently high to permit a reasonable recovery to the bond holders in the event of a redemp tion. If the bid price is more than the principal amount of the bonds outstanding, the excess amount bid may be considered as income tax able to the bondholders, according to a recent United States Supreme Court decision. If the bid price is made low to conserve the cash bal ance available for payment of taxes, and incidentallly to reduce the cash allocable to non-depositors, the sub s°quent basis of the property for in come tax purposes, both for com puting annual depreciation and gain or loss on a later sale, be comes fixed at an amount that may prove disadvantageous to the bond holders at a later date.” The fact that an equity of re demption rests with the owner of the equity, his transferees or as signees or his judgment creditors Is a major consideration that must be anticipated in determination of the bid price as well as in the whole management of the property during the redemption period if a receiver is in possession. One other factor to be considered on the bid: Where a deficiency judgment has been obtained as a result of the failure of the amount bid at the foreclosure sale to satisfy the amount of the debt, the interest of the non-depositing bondholders in the income of the property during the period of redemption makes possible "strike suits” on the part of holders of very small propor tions of the outstanding obliga tion*. Refutation •Just after John Noakes, a 70-year cld fisherman, was refused renewal of his boatman's license because of his age he jumped into the sea at Hastings, England, swam 40 yards and rescued a woman and her son from drowning. . ■ ■ . 1 ■ ^~ ■ ■ IN SPRING VALLEY—New Colonial home at 5160 Tilden street N.W., Spring Valley, which has been purchased'by Mr. and Mrs. Earl W. McComas from W. C. Si A. N. Miller, builders. N —Star Staff Photo. Paint Styling Creates New Homes at Old Addresses “New homes at old addresses are yours for the asking,” according to Henry Afman, president of the Painting and Decorating Contrac tors of America. Even though it may not be possible to have the brand new modern house of which many of us dream, it is, Mr. Afman points out, definitely possible to turn houses into homes in a new way—a way that starts with what we have and not what we hope to have. How can this be done? “By paint and painting,” states Mr. Afman, “by the utilization of what we call styl ing with paint.” What is styling? “Styling with paint.” explains the trade associa tion head, “consists of selecting colors that are currently popular and using them in painting the ex terior or interior of a house in a manner that follows the current i trends in painting. These trends are known to painting and decorat ing contractors by means of surveys of what colors are being used in various parts of the country on various types of newly constructed houses and in various types of new rooms.” In creating “new homes for old" by the use of paint, the greatest satisfaction to the owner and the most harmonious result will be ob tained by a complete job for both the exterior and interior, Mr. Afman points out. A good exterior paint job. he stresses, will include not only the house but the detached garage, the fences and any other smaller buildings on the property. "From the standpoint of styling.” says Mr. Afman. “bright color con trasts should be employed for the shutters, the front door, the gate. These are details I would like to emphasize because today it is the fashion to paint the rest of the out side trim—except perhaps the win dow sashes—the same color as the body of the house. “Perhaps you say that you would like nothing better than to modernize your old home with paint—provided you could afford it. Nowadays you can buy painting and decorating jobs on a time payment plan—the same sort of plan which you use I to buy automobiles, refrigerators, radios, vacuum cleaners. “It is no longer necessary to pay the contractor in a lump sum upon the completion of a painting and decorating job. Arrangements can be made for having such work done without a down payment—with monthly installments of a small amount each month. Home own ers simply explain what they wish to have done by the painting and decorating contractor to modern ize their dwellings. The contractor draws up specifications and makes a definite estimate of the total cost. ' After a credit statement, checked up by an agent of the financing company, the go-ahead order is given. “Don’t ever think you're cutting financial corners by engaging a painter who isn't highly skilled or by having him use anything but the best materials. Either course opens an avenue for the possibility of un satisfactory results. I “Employ quality workmanship and materials and you make sure of getting the greatest pleasure, satis faction and service from your 'new' house.’’ -- Radio Grows in India State radio broadcasting stations in India have increased from two to 16 in the last eight years. In a public health school in Yugo slavia farmers are attending special classes with courses emphasizing better houses. ---- 'Don'fs' Set Forth For Home Builder •'Don'ts" for the prospective home builder are set forth by Clement W. Fairweather of Metuchen, N. J., fel low of the American Institute of Architects, who declares that “only by absorbing the inspiration of the past and adapting it to the needs of | the present can beauty be created.” Mr. Fairweather's "don't” list fol lows : I "Don’t try to get the cheapest i plan. If that's what you want, you should have a round house, and en ter directly into the living room, and ! into each room from that, but you | know perfectly well that a long, ' low, rambling house with the win dows sticking through the eaves is • better. "Don't try to eliminate all corri ! dors. They add to the spaciousness j of the house even if they do some | what increase the east. "Don’t insist on having the bath room over the kitchen because it is cheaper so. If it works out that way it's very nice, of course, but there's no sense in having the bath room where you don't want it, just to save a few feet of cast iron soil pipe. "Don’t pay too much attention to that fetish about having the house the proper w-idth to save timber. The actual effect on the ca't of this item is negligible and it is more im portant to be sure that the width of the dining room is adequate. ’ Don't ignore the practical aspects when planning your home, but let them be your servant, not your master.” ■ Liberia has only one motor vehicle to every 12,000 people. Residential Building Ahead of Last Year The money spent for residential building in the Middle Atlantic States so far this year has reached the level which was recorded during November, 1938, according to J. T. Little, the district manager of Dodge reports. The contracts awarded during each of the eight, months established substantial margins over the same months of last year. Sig nificantly, great activity has taken place in the one-family field. The Dodge reports summary re veals a current residential contract total of $124,795,000 for Southern New Jersey, Eastern Pennsylvania, Delaware, Maryland, the District and Virginia. This includes a mar gin of more than $42,000,000 over the eight months’ total of last year, $82,085,000. In a grouping of all types of building and heavy engineering construction, Dodge reports finds that the Middle Atlantic States have passed the $300,000,000-mark. The eight months’ level was $311,637,000. _ 100 Homes Sold In Woodmoor Section Sale of 100 homes in Woodmoor, Md., during the last lour months was announced today by George W. Moss, president of the Moss Realty Co., developers of the nearby Mont gomery County residential com munity. The majority of the sales, Mr. Moss announced, were in the com pany's new "small estates section," started in May of this year as a section devoted to low cost homes eligible for financing under the Federal Housing Administrations 25-year, 90 per cent mortgage plan. Featuring bungalows and two story dwellings, the new group is located on the eastern fringe of the 130-acre tract that comprises Wood moor, situated adjacent to Pour Corners, overlooking the golf course of Indian Spring Country Club. So great has been the flow of visitors to the development that the company has placed on display three exhibit homes—a one-story type with two bedrooms and bath, a two-story type with two bedrooms and bath and a two-story type with three bedrooms and bath. Two of the three dwellings are furnished. Totalizators in England tools bets at the rate of $50,000 an hour dur ing last year's racing season. | Pre-Showing NEW DETACHED “Air-Conditioned” HOMES in ‘GRASSLANDS’ A restricted community of fin* detached homes. Built by Monroe Warren Six spacious rooms, , 2 tiled baths, screened perch, floored I attic, garage, landscaped lots 60 feet wide by 91 feet deep. on'r "10,500 The finest materials and workmanship. Complete modern equipment. A lovely heme in a delightful location, convenient to everything. 4322 Windom Place N.W. Open Until Dark Daily » Drive out Mass. A ve. to 46th St., right to Windom PI., right two blorks. Ig v=j 1XJ iZJ JZJ uU .u Jii CiJ Gif CiU CU Ci. CfJ CU EJOdJEUgL 2013 Klingie | Road N.W. g & H. O. L. C. Forecloture P % E s A fine home at the edge of | [| Rock Creek Park—conven- 1 Ej ient to stores, churches, | !> schools and transportation | j| —seven spacious rooms, 2 E e: baths, sleeping porches, | I; built-in garage — recondi- | ; [| tioned like new — priced | i£j until uarn g ^ E ckmorton | Di. KO»‘i ja Hillllllll!ll!l!lllllll|||!imi!lll|||||||||l||||||||||||||||||||||||| II One of a Group of 7 | Exhibit Hom«—1341 TUCKERMAN ST. N.W. • Center Hall • De Luxe Kitchen and • Copper Water Pipes il • Six Larre Dinette • Air-Conditioned Oil fe Rooms • Paneled Recreation Heat s • First-Floor Room • Larre Front Porch g Laratorr o Finished Attic • Southern Exposure B • Two Baths on • Three Larre Bedrooms • Larre Landscaped Lot (£ Second Floor • Two Open Fireplaces • Detached Brlek Oars re g Furnished hr Hilda N. Miller TO REACH: Drive nvt 11th Street In Tuckerman Street. | turn left nn Tuckerman <, block. S OPEN Sl'NDAY AND DAILY | 1 ». S. BIRO'S ME. 5112 | iiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitfiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMmiliiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiu 1 First Showing — 3 Already Sold j | Priced Within Your Means—$6,950 to $7,950 [ ! = 3 Exhibit Home, 692 Montgomery Are. Silver Spring, Md. 1 Attractively Furnished by The Hecht Co. S A development of 5 ond 6 room brick homes. The six-room home consists of large living room, open 1 fireplace, dining room, modern kitchen and screened end porch. Second floor has 3 livable bedrooms s with large closet space and bath. Garage; slate roof; recreation room; oir conditioned; lot frontage 65 = feet, running bock 123 feet. The 5-room homes run some as above, except 2 bedrooms instead of 3. ™ To Reach: Out Georgia Ave. to Silver Spring, turn right on Montgomery ■£ Ave. (ot Home A Herrmann Furniture Store) t blocks. You will tee our sign. | Open Daily and Sunday, Till 9 P.M. ( WAPLE & JAMES, Inc. 1 8433 Ga. Ave., Silver Spring Shep. 5200 A I 16th St. Height* 1 I $8,500 I 1331 Rittenhouse 1 | Street N.W. (S English brick Colonial. 4 years §j S old, large living and dining j§] rooms, beautiful kitchen and g g breakfast room, open fireplace, a § 3 big bedrooms, 2 delightful 3 : a baths, recreation room, built-in Ej I |£i garage; unforeseen circum- a I s stances necessitate this im- g [ a mediate sacrifice. g | Open Sunday 2 to 8 | I FRANK S. PHILLIPS | | 927 15th St. Dlst. 1411 1 jjfeiaaaafflstBi&mgop.'aaaaaffl&'di •special bargain* 2260 Cathedral Ave. N.W. Opposite Government Park Priced at $10,750 for Immtdiatt Salt Semi-detached brick. 5 master bedrooms, 3 baths. New house I condition. 2-car garoge. | Former home o( U. S. Senator Open All Day Sunday | Out Conn A re. to Cathedral Ale. \ east on Cathedral Are. to house. SPRUCE & CARR, Inc. Tower Building 0 Natl. 0080 0 ^ FIRST SHOWING!^ The Opening of Washington’s Newest Home Project C\ OPEN FOR INSPECTION TODAY ))' The Home Beautiful / ■f Visit this attractive model home today! Scores / 1 6 of innovations in design and planning make it II the "Home-of-the-hourf I I An Achievement in Home Value! 1/ / *8,250»1 1 I ■ : •: | 77 DETACHED Homes to be Built! 11 Homes Now Ready! One of the most desirable lo cations in the Nation's Capi tal—high and healthy—just a few minutes from downtown. Every home different! De signed by well known archi tect who has struck a re freshing new note in mod erate priced homes. Strik ing wall effects in gay new papers. Efficiency kitchens. De luxe bathrooms and a host of other features. Terms Less Than Rent! SAMPLE HOME 4413 16th ST. N.E. Furniihed A Decorated by HILDA MILLER h __ . TO INSPECT—Drive out Michigon Avenue to 16th Street N.E. Turn left one block to sample home. A "BUILT-RIGHT" STEUART BROS. HOME IS YOUR SOUNDEST INVESTMENT INSPECT THEM FIRST Come out to see them and be convinced. j We saw the demand for a small high-class home in the Northwest and here it is. People of small income have the same taste for the nice things in life as those who j C are blessed with more money and here we have it. ] || Every modern convenience, including automatic heat. jj Adjoining U. S. Government Park, a privilege enjoyed by so few of the many people !! living in the near Northwest section. : JUST THINK OF THE NUMBER OF PEOPLE YOU KNOW WHO LOOK UP AGAINST SOMEBODY'S BRICK WALL ALL THEIR LIVES Make your own comparison. | |! 1 Drivt out Wiocontin Act. to Calvort St., turn wott on Calvort St. to 39th St., loft on 39th St. to W St. to homot. j I L. B. MOORE AGENT FOR BETTER HOMES I 927 15th St. N.W. REpublie 2340 A