House Calls by Edith Lank

Dear Mrs. Lank: I don't have a question but I do want to share with you this official-looking mail I recently received. It irritated me because I'm sure many people will panic, think they need to get a certified deed, and send in the $59.50. Care to comment? — P.D.

Answer: Thanks for sending me that scam mailing, which leaves the impression that the "U.S. Federal Government Citizen Information Center" requires you to have a certified copy of your deed.

Some homeowners may get nervous with all the legal language at the top, skip to the bottom of the page, tear off the "bill" and mail it back with a check. And as with the "but wait, there's more!" TV ads, some will even go for two copies just to be safe, and send off $79.

The mailing implies that you're in trouble if you don't have a copy of your deed. That's not true at all. A deed's one job in life is to transfer ownership of real estate. Once that's been done and a copy is entered in the county records for all the world to see, then as a young lawyer once told me, "You could tear it up and throw it in the wastebasket."

And more important — anyone who does want a copy can get it for a modest fee from the local public records office.

Raffling It Off

Dear Mrs. Lank: My family and I live in a nice home but it is really more than we can afford. We owe more than we could sell it for. So I have come up with idea of possibly trying to raffle the property off but I am not sure of all the implications involved. Do you have any thoughts on this idea? — Via e-mail

Answer: For starters, in almost every state, a private raffle is illegal.

If you did hold a raffle, you'd have expenses for legal help in setting up the project. For example, you'd want the right to call things off if you didn't collect a certain amount of money. You'd need money for advertising your project, setting up an escrow account to hold receipts and secretarial work to keep track of everything. If, as is most likely, you did not sell enough chances to reach the reserve price you set, you'd need to return the money you'd collected, entailing more secretarial work.

There's a reason why you almost never see a house raffled off.

If it did happen, it would probably be done by a charitable institution that was legally allowed to take that route for fund-raising.

No-Risk Great Return

Dear Ms. Lank: I inherited my mother's condo in 2006, and would like to pay off the mortgage as soon as possible. Currently there is about $34,000 left on the mortgage, at 7 percent interest. I am able now and then to pay an extra $200-300 a month on the principal, but I vaguely recall you saying it would mess up the amortization with the company. However, on the monthly statement I send them, it has a place to list an additional amount to be applied to the principal. Can you clarify for me? — C.T.

Answer: I can't recall what I wrote about messing up a mortgage amortization schedule. It might have been in answer to someone who wanted to make two half-payments a month, which would indeed result in late charges and complications.

Your plan to send in extra principal payments, though, is just fine. It's clear your lender is set up to handle them. Just be sure to check your mortgage statements, to make sure the money is properly applied and not just stashed in your escrow account.

The additional money you send in will yield the same return as if you'd invested it at 7 percent, which is a terrific rate to earn on savings these days, no risk, guaranteed. The only catch is that once you've sent it off, it could be hard to tap the extra funds quickly in an emergency.

Worried About Taxes

Dear Edith: I have been on my mother's checking account since my father passed away 18 years ago. My name was only on the account 'just in case'. I never received statements, or any income whatsoever from the account. My mother is in the process of selling her house. Will I have any tax liabilities if she deposits her proceeds in the joint account? I will not receive any of the money, and don't want any of it, but I don't want to pay taxes on it either. — K.

Answer: If you're not on the title as one of the owners of the house, you won't have any tax liability when it's sold. Where your mother deposits her proceeds won't matter.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.

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