House Calls from Creators Syndicate

Using Stepped-Up Basis for 05/27/2012

Sun, 27 May 2012 00:00:00 -0700

Dear Edith: My deceased mother's house has an offer that my siblings and I have accepted. We believe we each will receive about $20,000 after the realty fees. My question is, do I have to pay income tax on the money, since it is my inheritance? — L.

Answer: The IRS says that for inherited property, your cost basis is the value at the time of death. That's known as a "stepped-u ...

Updated: Sun May 27, 2012

How to be a Flipper for 05/20/2012

Sun, 20 May 2012 00:00:00 -0700

Hi Edith. I'm intrigued by the idea of flipping a house — buying, fixing up and re-selling at a profit. But I have exactly zero experience and no cash. Not exactly a recipe for success.

What's the best way to go about finding a flip-worthy home? Are there particular "rehab loans" that might be available? Obviously it would be best to partner up with someone with experie ...

Updated: Sun May 20, 2012

Holding a Mortgage for 05/13/2012

Sun, 13 May 2012 00:00:00 -0700

Dear Edith: I have someone who has asked me to be their mortgagor, and I was wondering, how does one go about the paperwork? Are there standard forms to be used? How does one file the mortgage lien? Would a real estate attorney be advisable or necessary? I have the wherewithal and based on current equity markets and savings rates, this looks like a better income rate. Advice? — K. B.

...

Updated: Sun May 13, 2012

Some Estate Planning for 05/06/2012

Sun, 06 May 2012 00:00:00 -0700

Dear Edith: Our parents are in their late 80s. Three years ago, they moved from their home to a rental apartment. I moved in to their house and have been renting it from them.

My sister and I will inherit it when our parents pass away, but we are interested in buying it now to keep the inheritance so it doesn't go towards paying for nursing home care if needed. Our parents will hold the ...

Updated: Sun May 06, 2012

First Timer Frantic for 04/29/2012

Sun, 29 Apr 2012 00:00:00 -0700

Dear Ms. Lank: I am a first-time homebuyer. Two months ago, I put in an offer on a house, which after a day or two of counter offers was accepted. Since then, I have been completing things like inspection, the mortgage application, and insurance. My mortgage rate is good until a week after the estimated closing date. The seller asked if I would be willing to rent the home to her until her apart ...

Updated: Sun Apr 29, 2012

Avoided a Scam for 04/22/2012

Sun, 22 Apr 2012 00:00:00 -0700

Dear Edith: In response to your article about rental deposit scams, there are also some being done via Craigslist long distance. It could have happened to my daughter. She saw a listing for a townhouse for rent. The scammer had a good story as to why he was renting it and why he was from out of town. The price was too good to be true, so we decided to Google the address and found out it was &qu ...

Updated: Sun Apr 22, 2012

Knows the Answers for 04/15/2012

Sun, 15 Apr 2012 00:00:00 -0700

Knows the Answers

Dear Edith: My husband and I spent two years preparing to buy our first house, researching the market and reading your column every week. Your words helped guide us as we navigated the ups and downs that come with any real estate purchase.

Now, as I read the questions, I like to try to predict your answers: "You need a lawyer," "No, cosigning a lo ...

Updated: Sun Apr 15, 2012

What's the Abstract? for 04/08/2012

Sun, 08 Apr 2012 00:00:00 -0700

Dear Edith: I recently inquired at my bank concerning refinancing my home mortgage, and they told me they require an abstract of title. Can you tell me what that is and why the bank requires it?

I have tried to obtain this document and have not been successful. I called the town clerk, the county clerk and my lawyer, and none of them could help me. I found out what company produced the a ...

Updated: Sun Apr 08, 2012

New Scam in Town for 04/01/2012

Sun, 01 Apr 2012 00:00:00 -0700

Let's say you're having trouble finding a rental. Maybe you've been turned down by a couple of landlords because your credit isn't all that good. Maybe you need a place that'll allow your sheepdog. Whatever it is, you have to keep trying. You answer an ad and drive the family out to meet one more landlord, and — pleasant surprise! — things are finally looking up. The house is vacant ...

Updated: Sun Apr 01, 2012

Takes More Than Just a Deed for 03/25/2012

Sun, 25 Mar 2012 00:00:00 -0700

Ms. Lank: We have a warranty deed on our home. We would like to sell it without the aid of a real estate agent. How do we do this? — email

Answer: You know what Louis Armstrong said when someone asked him to define jazz: "If you have to ask, I can't tell you." Perhaps 1 in 5 homeowners sell without using an agent, but I'm afraid you can't learn how in just one email from ...

Updated: Sun Mar 25, 2012

Limited Services for 03/18/2012

Sun, 18 Mar 2012 00:00:00 -0700

Dear Edith: My wife and I are going to put our house up for sale soon. Someone told us about a realty company that lists your home on the Multiple Listing Service, provides signs and paperwork, and has a number of services you can purchase. There's a flat fee, but you can get extras if you want them to show the house, buy a door lockbox, etc. You decide how much to pay another company if it fin ...

Updated: Sun Mar 18, 2012

Taxes Based on Value for 03/11/2012

Sun, 11 Mar 2012 00:00:00 -0800

Ms. Lank: I own 30 acres of vacant land. I wanted to build a pole barn on the property. The town would not permit it unless I had a house built there first. To get the ball rolling, I applied for a special use permit and built an 800-square-foot "seasonal camp." I'm not permitted to live in the house year round until I increase the square footage to at least 1,000.

I'm attachin ...

Updated: Sun Mar 11, 2012

Once and For All for 03/04/2012

Sun, 04 Mar 2012 00:00:00 -0800

Dear Mrs. Lank: I built my house in 1988, and as of 2010, I've paid it off. I'm looking to sell and wondering if the capital gains tax break is still in effect.

I think I read in one of your columns from a couple of years ago that the old once-in-a-lifetime law is no longer in effect and that the IRS doesn't care how old you are or whether you buy a replacement house. Several of my cowor ...

Updated: Sun Mar 04, 2012

Banks and Credit Unions for 02/26/2012

Sun, 26 Feb 2012 00:00:00 -0800

Edith, I heard on a national radio program that some credit unions are offering a "no closing cost" refinance loan. Is there such an animal? How do they make up for the loss of the closing costs? Is the loan rate less favorable? Do you know if any local credit unions offer this product? — M.Y.

Answer: Credit unions differ from other lenders because they are cooperatives r ...

Updated: Sun Feb 26, 2012

Title and Deed for 02/19/2012

Sun, 19 Feb 2012 00:00:00 -0800

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 property.

What kind of deed should I use? Do you recommend using a real estate lawyer for this process? Is there a difference between a title and ...

Updated: Sun Feb 19, 2012

Making Lots on the Sale for 02/12/2012

Sun, 12 Feb 2012 00:00:00 -0800

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? We purchased the house for $232,000, and recent sales have been around $890,000. — email

Answer: Any profit beyond $250,000 will be sub ...

Updated: Sun Feb 12, 2012

Can't Kick Tenants Out for 02/05/2012

Sun, 05 Feb 2012 00:00:00 -0800

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 can I kick the renters out before their lease is up? — L.

Answer: The rule is that a lease "survives the sale" and is as bin ...

Updated: Sun Feb 05, 2012

Did He Overpay? for 01/29/2012

Sun, 29 Jan 2012 00:00:00 -0800

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: The National Association of Realtors found that for some years, it made mistakes in reporting the number of sales, not sale prices. If your ...

Updated: Sun Jan 29, 2012

Low Down Payment for 01/22/2012

Sun, 22 Jan 2012 00:00:00 -0800

Ms. Lank: How can I purchase an investment property without putting 20 percent down? I currently own my home. — email

Answer: These days, lenders are being extra-careful, and they do require substantial down payments on non-owner-occupied properties. But I can think of several ways you could buy without meeting their standards:

— If you can, buy for all-cash.
&md ...

Updated: Sun Jan 22, 2012

What About “As Is”? for 01/15/2012

Sun, 15 Jan 2012 00:00:00 -0800

Edith: I have a modest home. Similar houses in my neighborhood in much better condition are selling for twice what I paid for mine in 1980.

I want to sell the house, but it has numerous problems. Disclosing them to a buyer would greatly lower the home's value — or scare the buyers off completely. I'd be happy just to recover the original cost.

As I understand it, if I sold t ...

Updated: Sun Jan 15, 2012