House Calls from Creators Syndicate

Receiving Parents' Home for 02/10/2008

Sun, 10 Feb 2008 00:00:00 -0800

Dear Edith: My parents, who are in their 70s, would like to sign over the deed to their home to my sister and I. What would the tax ramifications for all parties involved be? My sister and I each have our own homes. We live in different counties.

I have noticed in real estate transactions that homes transfer for one dollar. Should we do this? The home, if it were sold, would probably be ...

Updated: Sun Feb 10, 2008

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Buying Foreclosures for 02/17/2008

Sun, 17 Feb 2008 00:00:00 -0800

Dear Edith: I need to know if it is wise to invest in foreclosed homes, what are the steps I need to take and what to watch out for? -- S.B.

Answer: You need a lot more than I can tell you here. For one thing, do you realize you must make a cash deposit when you're the successful bidder, and pay the rest almost immediately? You'd probably need to have a line of credit set up ahead of time.

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Updated: Sun Feb 17, 2008

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Buying Ten Years Early for 02/24/2008

Sun, 24 Feb 2008 00:00:00 -0800

Dear Edith: I'm looking to retire in ten years. Should I buy my retirement home (12 hours away) with a mortgage now, or wait until I retire and pay cash? How do you figure the expenses compared with appreciation? -- L.S.

Answer: What would you do with that retirement home during the 10-year wait? You certainly wouldn't want the place vacant all that time, so do you plan to rent it out? It's no ...

Updated: Sun Feb 24, 2008

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Replace That Chandelier for 03/02/2008

Sun, 02 Mar 2008 00:00:00 -0800

Dear Edith: We are selling our home. We have shelves on our wall in our children's rooms. Can we take them with us or are we required to keep them with the house? -- J.P.

Answer: If you've already signed a sales agreement with buyers who saw the shelves up there, they stay. In general, something that is permanently attached becomes a fixture and goes with the real estate.

But if you're ...

Updated: Sun Mar 02, 2008

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Including Car in the Mortgage for 03/09/2008

Sun, 09 Mar 2008 00:00:00 -0800

Dear Edith: I have a daughter living in Virginia who is planning to buy a new home. She has recently purchased a new car. Her friends have advised her to include the cost of her new car in her mortgage, and then pay off the car. Their reasoning is that the additional monthly amount added to the house mortgage would be insignificant, while the cancellation of the monthly car payment would allow for ...

Updated: Sun Mar 09, 2008

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Deducting Extra Interest for 03/16/2008

Sun, 16 Mar 2008 00:00:00 -0700

Dear Edith: I went to my mortgage bank on December 31 to make an extra payment, so I could deduct more interest off my income tax return for 2007.

The cashier said the computer didn't take early payments. So, she had to make it for January. And of course I told her it had to be for December. She finally took the check and gave me a receipt, but it's marked for additional principal.

...

Updated: Sun Mar 16, 2008

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Deductible Closing Costs for 03/23/2008

Sun, 23 Mar 2008 00:00:00 -0700

Dear Edith: My wife and I purchased a home and moved into it in 2007. Now we are assembling our documents to file our incomes taxes for last year. However, it is not clear what is deductible for 2007 taxes on the house listed as closing costs, which amounted to $15,000. Should the realtor or closing attorney provide us with a detailed document listing what is tax-deductible? -- A.

Answer: You ...

Updated: Sun Mar 23, 2008

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What About Credit Scores? for 03/30/2008

Sun, 30 Mar 2008 00:00:00 -0700

Dear Edith: During the current mortgage crisis, I see many credit score numbers bounced around between say 550 and 650. That's doesn't mean a thing to me. I wonder if you could provide a few numbers and tell me what they mean. — P.B.

Answer: To help analyze your financial situation, mortgage lenders these days rely on a score that's based on your credit record.

A score of 8 ...

Updated: Sun Mar 30, 2008

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Tax On Forgiven Debt for 04/06/2008

Sun, 06 Apr 2008 00:00:00 -0700

Dear Edith: We had a $22,000 write-off from our short sale. It was money we didn't have to pay back on our mortgage.

Our accountant said we had to declare this as income. This caused us to owe money on our taxes instead of receiving a refund. I saw your response to this same scenario stating that we do not have to file this as income.

Is it possible to forward any literature you h ...

Updated: Sun Apr 06, 2008

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How Many Succeed for 04/13/2008

Sun, 13 Apr 2008 00:00:00 -0700

Dear Edith: In your opinion, about how many people who pass the license exam actually become successful real estate agents? — S.

Answer: Good question, and of course I don't know.

My husband, who is a Realtor, has been known to say, "It's a revolving door."

I'm trying to think about my own students, in pre-licensing courses over the years. Not all of them, e ...

Updated: Sun Apr 13, 2008

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Buying Uncle's House for 04/20/2008

Sun, 20 Apr 2008 00:00:00 -0700

Dear Edith: One of my boyfriend's uncles is selling a house we're interested in buying. We're not planning to use a real estate agent. The house is in very bad condition. It needs new paint, new carpeting, the flooring needs to be finished, the bathroom and kitchen need to be redone, etc. We already did the appraisal and the seller dropped $15,000 off the appraisal value. How do we approach the ...

Updated: Sun Apr 20, 2008

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Is it Safe Here? for 04/27/2008

Sun, 27 Apr 2008 00:00:00 -0700

Dear Edith: I am an ESL teacher living in Costa Rica. My husband and I just sold our home here, but we don't know if we should stay or move back to the U.S. Would it be safe to do so, with the economy as it is right now? — Via e-mail

Answer: I'm chuckling as I read your note. Nobody's rioting in the streets here.

Are you asking whether it's safe from a financial point of vie ...

Updated: Sun Apr 27, 2008

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Hidden Pistols for 05/04/2008

Sun, 04 May 2008 00:00:00 -0700

Dear Edith: Here's a different kind of question for you. When my father died recently, we went through some family papers and discovered that my great-grandfather had hidden some valuable Civil War pistols in his home. This is a house our family sold a few years ago.

I don't know if the guns are still there, but they might be; it was a good hiding place. Or, maybe the new owners found th ...

Updated: Sun May 04, 2008

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Holding a Mortgage for 05/11/2008

Sun, 11 May 2008 00:00:00 -0700

Dear Edith: My sister has a property our father sold her years ago. She is having trouble financially and needs to sell. She asked me whether I think she should hold the mortgage. I think absolutely not! But I told her I would e-mail you for advice. — D.K.

Answer: As so often, it all depends.

Taking back a mortgage (lending the buyer some of the purchase money and collecting ...

Updated: Sun May 11, 2008

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Painting The Whole House for 05/18/2008

Sun, 18 May 2008 00:00:00 -0700

Dear Edith: I heard that you should paint your house in neutral colors, like beige or white. Is that true? — K. O'B.

Answer: If you're preparing the house for the market, then yes, a quiet neutral color will help potential buyers picture themselves living there, no matter what furniture they already own. That's why builders who show model homes almost always use off-white walls and ...

Updated: Sun May 18, 2008

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Earnest Money for 05/25/2008

Sun, 25 May 2008 00:00:00 -0700

Dear Edith: When buying a home, is earnest money mandatory? Is it a must that I give my Realtor $500 as "good deed money," or earnest money? — J.C.

Answer: A money deposit is not a legal requirement for a sales contract. Your promise to buy is enough "consideration" to make the document binding.

There's a practical side to the matter, though. Without a de ...

Updated: Sun May 25, 2008

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What To Offer for 06/01/2008

Sun, 01 Jun 2008 00:00:00 -0700

Dear Edith: I want to make an offer on a house. I want to offer less than market price. What is a good rule of thumb? What percentage below market price should I offer? What can I expect as the counter offer? What other negotiating tips do you have? — K.

Answer: As so often, it all depends.

There's no rule of thumb, because every seller is different. Some list at a rock-bott ...

Updated: Sun Jun 01, 2008

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No Down Payment for 06/08/2008

Sun, 08 Jun 2008 00:00:00 -0700

Dear Edith: Are there really ways to purchase a home with no money down? — R.

Answer: Not as many as there used to be.

The Veterans Administration still guarantees 100 percent financing loans for qualified veterans. That means no down payment, though of course other closing costs may be involved.

I suppose you might find a private lender, probably the desperate seller ...

Updated: Sun Jun 08, 2008

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Offered Odd Deal for 06/15/2008

Sun, 15 Jun 2008 00:00:00 -0700

Dear Mrs. Lank: We have a second home that has been on the market and is sitting vacant. We now have a buyer that would like to do a quitclaim. How does that work? He would pay us a lump sum up front then make the monthly payment for 12 months before paying off our mortgage.

What risks are involved for us? Who is responsible for the upkeep, taxes and so on? — via e-mail

Answ ...

Updated: Sun Jun 15, 2008

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Only One Salary for 06/22/2008

Sun, 22 Jun 2008 00:00:00 -0700

Dear Edith: I had a question about money when buying a house. My fiance and I are planning on buying a house next year at the earliest (after we're married and all). We will only have his salary. We were told it's not possible to buy a house on his salary alone. I am planning on being a homemaker/stay-at-home mom so me working is not going to happen. Does that mean we'll never own a home? I kno ...

Updated: Sun Jun 22, 2008

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