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What to Ask the Broker
Dear Edith: As a retired associate real estate broker, I was interested in the item about what questions homeowners should ask when interviewing prospective brokers.
Asking how many homes an agent sold last year might reveal important information, …Read more.
96-Year-Old With Mortgage
Dear Ms. Lank: When my 96-year-old dad dies, will we heirs have to pay on his mortgage until the property sells? What happens if we don't make payments? — M. L. via askedith.com
Answer: Your dad's estate would be responsible for mortgage …Read more.
Can't Take it Back
Dear Edith: Twelve years ago, my dad, then 80, purchased a condo in Florida for himself and his live-in girlfriend. He paid $30,000 for it. His girlfriend contributed nothing. He has paid all the maintenance fees. The deed states that in the event …Read more.
What to Ask
What to Ask
Dear Edith: We are going to sell our condo this spring and intend to follow your advice and interview three realtors. We are not sure what probing questions to ask. Can you please advise us? — L. R.
…Read more.
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Still on the MortgageDear Edith: My brother is going through a divorce. The home, which is jointly owned, has about $115,000 mortgage left and is worth maybe $ 275,000. My brother wants to give his future ex-wife the house and forget about it. My question is if he signs the deed over to her then does he have to pay off the mortgage to avoid liability? If he still has his name on the mortgage, it's very scary to me, as he has limited funds. -- via askedith.com
Answer: Having that much equity protects your brother in case of a future problem, but your concern is a valid one. If your sister-in-law is (will be) financially able to carry the payments on her own, the best solution is to go through whatever paperwork will allow her to take sole responsibility for the present mortgage. If the lender won't allow that, she could refinance in her name alone. Judging from the mail I receive, her promise to do that in the future as part of the divorce settlement, might not be enough. Lending institutions don't have to obey a divorce decree. Your brother's lawyer should be able to suggest an arrangement that will protect him properly. And by the way -- if your sister-in-law can't qualify to carry the loan on her own, trying to hold on to the house is just storing up trouble for both of them. Wants an FHA Loan Hi Edith: I want to buy a home and apply for a FHA loan. How do I go about applying for one? Is it safe to apply online, or do I need to get a loan officer? What do I need to do? Please advise. I'm renting and do not want to continue renting. -- L. Answer: It sounds as if you could use the services of a real estate broker. Agents are used to educating first-time buyers about the process of buying and financing a home. Start answering ads in the areas you like, and visit open houses. Brokers will start with a brief financial analysis to see if you're likely to qualify for an FHA mortgage program. It won't cost anything or obligate you. After that they can guide you to a local lender, which may be a better option in your case.
Tenants Don't Pay Dear Ms. Lank: As a landlord if you take a tenant to court and get a judgment against them (for non payment of rent) does this go on their credit report? My husband says it is stealing and is surprised about how hard it is collect (warning to all your viewers about being a landlord). Yet stealing items from a store can land a prison sentence. -- S. A. Answer: When your husband gets a judgment, he should see that it's entered in the county's public records where, yes, it would show up in a credit report. But people who aren't paying their rent probably don't have much of a credit score to protect anyhow, so they may not care. Tell your husband there was a time when people were indeed put in prison for not paying their debts (see Dickens' novels). But he bears some of the blame for not exercising enough care in tenant selection. Landlords need thorough familiarity with state and federal anti-discrimination laws, the ability to secure and read credit reports and the patience to wait for the right tenants. Condo Under Water Dear Edith: I own a condo for which I'm slightly under water. Real estate agents tell me that I could sell it for about $360,000. I owe $335,000 and paid $400,000. I would lose approximately $40,000. My wife is now pregnant and we need more space. Should I rent it out and let someone pay my mortgage? It could take 10 years for me to break even. -- via askedith.com Answer: Don't rent the place out. As you can see by the preceding discussion, landlording is no job for amateurs, and it's easy to get into trouble. Would you buy a condo for $360,000 today as a rental investment? I'll bet you wouldn't. Forget that part. Some investors hang on to losing stocks because it's emotionally difficult to admit a loss. You're in that sort of situation. But you need to get out and get on with your life. Remember -- if you're buying and selling in the same market, what you lose on one end you'll make up on the other. Edith Lank will respond personally to any question sent to www.askedith.com. COPYRIGHT 2013 CREATORS.COM 
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