Smart Money: Homeowners can enforce subdivision restrictions

Dear Bruce: Our subdivision has deed restrictions. Who enforces those restrictions when someone violates the covenants? How is that done? C.G., Sacramento, Calif.

Dear C.G.: Any homeowner covered by these restrictions can enforce them by going to court. However, there are expenses involved. Deed restrictions are simply a contract between a group of people who have purchased in a given area. I thought one of the most interesting and on point signs that I ever saw was in a California community. As you entered the deed-restricted area, it said "RV's, boats, trailers, don't even think of it." As one who lives in a deed restricted community, I understand your concerns. I elected, as did my neighbors, to purchase here. If they didn't wish to be bound by those restrictions, they should have purchased elsewhere.

Dear Bruce: I'm carrying $15,000 in credit card debt and a $20,000 automobile loan on a $75,000 annual salary. Our rent is $1,300 a month. We would like to buy a house, but our income-to-debt ratio seems to be high. Are there mortgage programs that will loan above the value of the house to wipe out the credit card debt? My credit is excellent just too much. It will take too long to pay down the car to take advantage of current interest rates. T.P., via e-mail

Dear T.P.: You might want to consider a part-time job or put your spouse to work, if he or she is currently unemployed. Do whatever it takes to wipe out that $15,000 and reduce the automobile loan. You didn't mention how much house you would like to purchase, but given your income and all other things being equal, $150,000 to $200,000 range seems reasonable. The quickest way to make that happen is to live close and get your spending in order.

Dear Bruce: You've commented many times about when you should or should not carry full coverage on cars. We have a Toyota 4-Runner purchased in 1998. Is it time to reduce my coverage? R.W., via e-mail

Dear R.W.: Let's clarify things first. Liability insurance has nothing to do with the age of the vehicle. You're just as dead when killed by a 1980 automobile as you are with a 2002 model. The only options are on the physical damage portions, i.e. collision and comprehensive. When an automobile is worth $3,000 or less, I believe that collision and comprehensive becomes a very poor buy. Some argue that people who cannot afford to spend $3,000 are ill advised to cancel the coverage. Remember collision coverage on an older automobile is disproportionately more expensive than on a new one.

Dear Bruce: I need to find a career that supports me. I am 28 years old with two kids. You said that sales positions are pretty good. What sales would you advise? A.M., via e-mail

Dear A.M.: Sales people are among the best paid in the world and deservedly so. They stoke the engine and generate business activity. There are two basic divisions: tangible, which includes real estate, automobiles, etc., and intangible, such as stocks, bonds, insurance, etc. Rarely are people good at selling both genres. A good sales person is able to take constant rejection, bounce back and stay with it. No sales jobs are free of rejection. Sales is not taking orders from behind a counter. The guy or gal who goes out and persuades someone to buy a couple hundred thousand dollars worth of life insurance is a salesperson.

(Bruce Williams is a national radio talk show host and syndicated columnist. He can be contacted through the Business Journal by writing to PO Box 1365, Springfield 65801 or via e-mail at sbj@sbj.net.)