Timeshare Scams by Edith Lank on Creators.com

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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. Low Down Payment 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 …Read more.

Timeshare Scams

Dear Mrs. Lank: My lady friend and I own three timeshares in Pompano Beach, Fla., and Las Vegas. I'm 79, and we've decided to sell all three. We have been scammed in the past by giving money to two listing companies who just put them on the Internet. We never heard from them again.

My lawyer said I'm making a mistake putting money upfront. I always thought they would need that money to print literature about my property to sell it. We almost paid a company $900 each to take them off our hands. They said our heirs would inherit them and be liable for maintenance fees and taxes. Any ideas would be much appreciated. — C.H.L. and C.M.C.

Answer: If you are willing to just give up your timeshares, contact the managements and ask if they'll take them. Then call Realtors in those towns to see if they'd market them for a nominal price and 95 percent commission. Or consult your grandchildren about how to offer your weeks for free on Craigslist.

Your lawyer is right; it's no use paying anyone upfront. And I'm sure the attorney would explain that your kids could refuse an inheritance.

Finally, ask the lawyer what's likely to happen if you just stop paying the annual charges. Often, there's no bad consequence to you.

DATE OF CLOSING

Dear Ms. Lank: My question pertains to the new and existing home buyer credit. We purchased our current home in September 2008 after owning a home in another state for the previous 12 years. Do we qualify for the credits offered by the government? Information regarding this is confusing and very vague at times. — L.A.

Answer: The date of your purchase means you wouldn't qualify for the $6,500 repeat-buyer tax credit.

The credit is available for purchases or binding sales contracts signed by qualified repeat buyers between April 30, 2009, and Nov. 9, 2009. Any contract signed within those dates has until June 30, 2010, to close.

ABOUT AN AUCTION

Ms. Lank: You answered a person who wanted to know about setting up a raffle for his home. Of course, you advised against this. What about an auction? I don't know anything about cost, etc., but do know some people have done auctions.

— M.M.

Answer: In some areas, particularly rural locations, real estate auctions work well. You'd want to engage a licensed company that has financing arrangements set up in advance and can investigate would-be buyers' qualifications. It takes know-how to publicize an auction, to set a reserve price and to gather a crowd and the like. I don't think it would work for a do-it-yourself amateur.

WOULD NOT HAVE BOUGHT

Dear Edith: My wife and I recently purchased our first home. Once we moved in, we discovered a strong odor in the laundry room. We found a rat infestation and learned that a possum had been living in the walls of the heater. We had a company professionally remove the insulation from the attic and try to sanitize the laundry room, but the odor has not gone away. If we had known about this problem, we certainly would not have purchased this home. It has taken our first home purchase from a dream to a nightmare very quickly. — e-mail

Answer: When you say "we never would have bought if we'd known," you are stating an exact legal requirement for voiding the whole purchase and giving the house back. But you'd have to prove that the seller knew about the problem and deliberately failed to disclose it. Maybe the neighbors had heard about it? I can’t judge, of course, if you'd prevail in a lawsuit.

You need to discuss the whole matter with a real estate attorney, who will ask what you're looking for. Do you want to move out? Stay but be reimbursed for what you spent trying to cure the problem? Or what?

Let me know what happens; I'm interested.

WHO MAKES THE REPAIR?

Dear Edith: A bank-owned foreclosure I want to purchase has an unacceptable sewage system, and the bank needs me to repair the system to the tune of $8,000-plus before they deem the home sellable. They said they could add the cost to my mortgage.

Am I supposed to repair this, or is the bank responsible? — J.V.

Answer: It's risky investing $8,000 in a property you don't own. In a normal situation, the seller/owner would make the required repair. Forget what the bank "says." I'd want binding written contracts before doing anything. I'd get myself a lawyer, preferably one who specializes in real estate.

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.