Dear Edith: I recently made an offer on a foreclosed property that was rejected by the listing agent because I had preapproval from a correspondent lender instead of a direct lender such as Countrywide, BOA, etc. My cash deposit and earnest money were well over 20 percent of the price. The listing agent wouldn't even present the offer to the lender that currently owns the property. My credit is excellent and I have great income. This is the first time I've heard of this practice. Is this normal with bank-owned property? — N.E.

Answer: License law requires that an agent present any written offer promptly to the property owner. The agent has no right to reject an offer. Contact the managing broker in that real estate office. If you're already dealing with the managing broker, contact the state licensing authority.

I suppose it's possible the lender/owner authorized the agent to reject certain kinds of offers. But, by all means, also discuss this with the bank that owns the property.

Don't Want To Move

Dear Edith: My grandson and wife have a six-month contract to sell their home. They are three months into the contract but no longer need to move due to the loss of an expected baby. What is the proper thing to do? Be upfront with the agent or string him along? — R.W.

Answer: It's too bad your kids have had this disappointment, but at any rate, they don't need to worry about their listing contract. If they want to take the house off the market, they can certainly do so at any time. Their agent will have the necessary forms for them to sign.

Changing Deed To Son

Dear Edith: I just paid off my mortgage. We would like to change the name on the deed from our name to our son's name. How or where do I go about doing that? — R.S.

Answer: You have a lawyer draw up a new deed, naming your son as the owner. You sign it, have your signatures notarized, and have the deed entered in the county's public records. That part is easy.

But first you discuss possible complications with your lawyer.

If you want to sell in the future, for instance, your profit won't qualify for the home sellers tax exclusion. Assuming your son doesn't reside in your home, he will owe capital gains tax on the profit, which is calculated from your cost basis.

If you ever wanted to take out a reverse mortgage you couldn't. Your son, though, could mortgage the property any time he wanted to. If he ever had the bad luck to have a judgment placed against him, it would be a lien on your home. If he ever got divorced, your place might be mixed up in the settlement. If he died leaving everything to his wife, your home would be in her hands, or might some day even end up owned by her next husband.

Every person's situation is different, and there may be good reasons for doing what you propose. And your attorney may suggest legal procedures for avoiding some of those problems.

So first talk it all over with a lawyer who specializes in estate planning.

What Kind Of Credit

Ms. Lank: What kind of credit do you need to buy a house? — Via e-mail

Answer: Good credit.

These days, even better credit than you needed a few years ago. You're probably okay if you pay your bills on time, don't have too many debts, have dependable income and can make a substantial cash down payment. A credit score in the high 600s or, better yet, the 700s, should do it.

Off The Title

Dear Edith: I currently have a mortgage loan with my sister, and both of our names are on the title. Is there any way for me to take my name off the title without her having to refinance or sell the house? — S.

Answer: It's a simple matter for you and your sister to sign a new deed naming her as the sole owner of the house. Once the deed is recorded, she'll be the only one on the title.

From the rest of your question, though, it sounds as if what you really want is to be free of liability for the mortgage. That's a different matter entirely. Just changing ownership doesn't free you from the promise you made, when you signed those mortgage papers, to pay off the loan.

If that's what you're after, contact your mortgage company. Sometimes they'll take your name off if your sister proves she can handle the debt on her own. Sometimes they won't.

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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