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Title and Deed
Dear Edith: My husband and I recently paid off our home mortgage. Only my name is on the deed. I would like both of our names to appear on the title to the house, so that in the event of my death, my husband would clearly have ownership of the …Read more.
Making Lots on the Sale
Dear Mrs. Lank: I've lived in my house for 32 years and want to sell this year. I am widowed and understand that I will have $250,000 that will not be taxed from the proceeds. Am I required to pay capital gains on a portion of the remaining monies? …Read more.
Can't Kick Tenants Out
Mrs. Lank: I am interested in buying a condo that is currently rented out. The seller says that the lease isn't up until for seven months and therefore I couldn't move in until then. If I bought this condo, would I be forced to become a landlord? Or …Read more.
Did He Overpay?
Dear Edith: I bought a house this summer, and in light of the National Association of Realtors' admission that they've been overstating home sales since 2007, I'm wondering if that faulty data may have made me overpay for my house. — L.
Answer:…Read more.
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Seller Holding MortgageDear Edith: I have a 30-year-old home that I want to sell to a couple, but I will hold the mortgage. Can the buyers get the $8,000 credit that the government issues, or is that only with official bank mortgages? — e-mail Answer: Assuming your buyers are otherwise qualified for the first-time homebuyers tax credit, it won't matter how they're financing their purchase. They could receive up to $8,000 off their income tax bill, even if they were paying all cash.
HUSBAND GOT THE HOUSE Dear Edith: My husband I divorced 18 months ago after 30 years of marriage. My husband got the house. However, he never refinanced and my name is still on the mortgage. Since he failed to refinance, do I have any claim on the house if he remarries and sells the house? — B.T. Answer: You are still personally responsible for the entire mortgage debt, but that doesn't give you any claim to ownership or any share in the proceeds if the house is sold. Still, look at it this way: If he sells, the mortgage will be paid off and you'll be free of that liability.
BIWEEKLY MORTGAGE Ms. Lank: My son found that splitting his single mortgage payment about two weeks apart into two payments saves him considerable interest and, therefore, less total amount owed over the length of the mortgage. I asked my credit union where we have our mortgage, and they said they were unable to do this same thing. Have you heard of this bimonthly plan? What is your opinion? —V.A. Answer: There's no magic to a biweekly mortgage payment plan. (Notice that where you said "bimonthly," I said "biweekly.") You can always save on mortgage interest by sending in extra money to pay off the loan more quickly than scheduled. And that's what your son will be doing. Your son is not making those half-payments twice a month. He's making them every two weeks, which is a different thing altogether. A couple of times a year he'd owe a payment on — for example — the first of the month, two weeks later on the 15th, and again on the 29th. Because "every two weeks" means 26 times a year, he'd be sending in the equivalent of one extra full payment annually.
Trying to do that on your own would evidently upset your lender's computer program. If you want to accomplish the same thing, though, just send in one full extra payment a year on a separate check, clearly marked "to be applied entirely to principal reduction."
TURNING OVER TO THE BANK Ms. Lank: I was just wondering what would happen if I turned my house back over to the bank? I am not in danger of a foreclosure; it's just getting too much to handle and we have another house that we want. What happens to our credit? What are the consequences of doing this? — e-mail Answer: You can't just give your house to the bank. I suppose you could always ask them, but I'm sure they won't take it. Right now, they have all the real estate headaches they can handle. If you can sell for enough to pay off your mortgage, put the house in the hands of a real estate broker at a bargain price for a quick sale.
REPAIR OR NOT Dear Edith: We are thinking about moving, but our house needs siding and a roof. The roof is not horrible, but should be redone soon. The siding is made of some type of composite. Above the garage doors, the gutters leaked and caused a hole above each door. My question is, should we just fix the holes and then put the house up for sale? Or should we go ahead and have the house sided and put in a new roof and gutters? Would it be worth it? Not sure what to do. — e-mail Answer: I have no idea how bad your roof and siding are, so I don't know if a buyer's mortgage lender would require repairs. Nor do I know anything about price levels in your neighborhood. You can receive good local advice — free — from real estate brokers who are familiar with your market. Call three companies that are active in the area and ask for someone to come over. You won't have any obligation until you sign a contract authorizing someone to market the place for you. Meanwhile, you'll get some expert opinions and, perhaps, a chance to meet an agent who seems right to handle your sale. 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. COPYRIGHT 2009 CREATORS.COM
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