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Some of the most attentive pupils at a home-improvement class in Far Rockaway, Queens, are homeowners who are facing the imminent threat of foreclosure..

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Pension funds, life insurance companies and private equity funds have been focused almost exclusively on purchasing core properties in a handful of top markets. That tunnel vision may start to expand in 2012 as institutions prepare to venture further out on the risk spectrum.

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Mount Vernon, N.Y., draws a lot of newcomers for its rich variety of prewar Tudor, Mediterranean and Colonial single-family homes. The homes are comparable with those in neighboring Bronxville—but at a fraction of the price.