House Calls from Creators Syndicate

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

Keep Calm and Carry on for 01/08/2012

Sun, 08 Jan 2012 00:00:00 -0800

Dear Edith: I applied for a mortgage three months ago and still don't have a closing date. The bank made several mistakes (an employee checked the incorrect boxes), which caused the application to be denied, and now it must be resubmitted. The bank requested documents that I supplied within 24 hours. They have stated verbally many times that there is no problem and that I will be approved, but ...

Updated: Sun Jan 08, 2012

Home-Seller Tax Break Changed for the Better for 01/01/2012

Sun, 01 Jan 2012 00:00:00 -0800

Ms. Lank: In a couple of years, my wife and I will retire (we'll be 69), sell our house and rent an apartment on the fringe of suburbia for a year. In that time, we'll look for a place to retire. How long do I have to buy another dwelling before I get creamed by capital gain taxes? — email

Answer: You'll be happy to hear that the rules about this changed years ago. The home-sellers ...

Updated: Sun Jan 01, 2012

No Deed to the House for 12/25/2011

Sun, 25 Dec 2011 00:00:00 -0800

Dear Edith: We bought a vacant lot and had a house built on it. We have no mortgage; we paid cash for the whole thing.

What happens when we go to sell someday? All we have is a deed to the undeveloped property. We do have a notarized letter from the contractor saying that we paid everything we owed. Do we need a lawyer to draw up a new deed? — R.L.W.

Answer: No problem. If y ...

Updated: Sun Dec 25, 2011

Getting Hands-on for 12/18/2011

Sun, 18 Dec 2011 00:00:00 -0800

Dear Edith: We've all heard about the housing market and the foreclosures. But can you please tell us — the common folk — how we can get our hands on the foreclosure properties that are on the market? — Common folk

Answer: Properties about to be foreclosed and sold at public auction are advertised in the local papers. The ads will tell you whom to contact for informatio ...

Updated: Sun Dec 18, 2011

Timeshare Problem for 12/11/2011

Sun, 11 Dec 2011 00:00:00 -0800

Dear Mrs. Lank: We have had a timeshare for over 20 years. My husband is now 83, and we can't afford to keep paying maintenance fees; his health is our No. 1 priority now. The places we have contacted want thousands of dollars to either sell it or take it off our hands. Many years ago, timeshares were considered real estate. Could you advise us on what to do? — L. and K.H.

Answer: ...

Updated: Sun Dec 11, 2011

For Sale by Owner for 12/04/2011

Sun, 04 Dec 2011 00:00:00 -0800

Dear Edith: A friend of mine is attempting to sell his home "For Sale by Owner". Although he would have no selling commissions, is he legally liable for the buyer's portion of commissions should the buyer be using an agent? What phraseology should he use to avoid this happening, or what should he look for to avoid this situation? — email

Answer: Your friend is liable for ...

Updated: Sun Dec 04, 2011

Reducing the Commission for 11/27/2011

Sun, 27 Nov 2011 00:00:00 -0800

Edith: We are building a new house and dealing with the real estate agent for the builder. We plan to use this agent to sell our current home. Should we expect a reduced real estate fee from that agent for selling our current home? I was thinking of a discount of 1 percent. Is this reasonable? — J.B.

Answer: Real estate commissions are negotiable, but that's assuming your agent is ...

Updated: Sun Nov 27, 2011

Paid in Full for 11/20/2011

Sun, 20 Nov 2011 00:00:00 -0800

Dear Edith Lank: We paid off our home loan in March 2011. We received an email from our mortgage company stating that our mortgage was paid in full. Should we have other documentation, such as a deed, for our records? If so, how do we go about getting one? — G. and R.G.

Answer: The lender owes you a document showing that the debt has been repaid — a certificate of satisfactio ...

Updated: Sun Nov 20, 2011

No Real Estate for 11/13/2011

Sun, 13 Nov 2011 00:00:00 -0800

Hello, Edith: We live in a manufactured home community, where we own the home and rent the land. It's a well-maintained park, and the home is a double-wide with an attached two-and-a-half-car garage. It can't be moved without heavy damage. It's valued at $115,000.

We would like to consolidate some bills as well as establish a line of credit with a home equity loan. Being able to write of ...

Updated: Sun Nov 13, 2011

IRS and Forgiven Debt for 11/06/2011

Sun, 06 Nov 2011 00:00:00 -0700

Dear Ms. Lank: My husband lost his job, and we could not afford house payments in addition to our medical bills. At the end of 2010, we had a short sale. We found a buyer and the lenders agreed to forgive a small amount on our primary mortgage and a large amount for our home equity loan. Otherwise, we couldn't have sold our home.

My question is this: Will we owe income tax on the money w ...

Updated: Sun Nov 06, 2011

Correct Price Isn't Selling for 10/30/2011

Sun, 30 Oct 2011 00:00:00 -0700

Edith: On several occasions, you have said, "The public has voted that your price is too high" (in response to little interest in listed homes). What does my friend do when a broker says, "The price is correct"?

There has been only one showing and one open house visit in two months. The broker says, "Houses in this price range just aren't selling." So what d ...

Updated: Sun Oct 30, 2011

To Lend or Not to Lend for 10/23/2011

Sun, 23 Oct 2011 00:00:00 -0700

Hi, Edith: My son is going through a divorce, his credit is terrible, and I am his only hope of keeping his home. I want to help him out, as I'm concerned about his ability to stay on top of things.

We went over the figures, and if I lent him the money he needs, his mortgage payments to me plus property taxes would equal less than 30 percent of his income. He has about $20,000 equity in ...

Updated: Sun Oct 23, 2011

Signed the Listing for 10/16/2011

Sun, 16 Oct 2011 00:00:00 -0700

Dear Ms. Lank: After I spent several hours with a broker preparing (and signing) a listing contract, she said, "Let's go outside so I can see the back of the house." We were shocked to see that torrential rains the previous day had caused extensive damage to both my property and that of my adjacent neighbor.

I told the broker that I must immediately call a construction company ...

Updated: Sun Oct 16, 2011

Watch Out for the Windmill for 10/09/2011

Sun, 09 Oct 2011 00:00:00 -0700

Ms. Lank: We have an old house on a half-acre lot. Most of the lot is backyard, with a concrete slab where the garage used to be and a large garden. In our retirement, the garden has become more chore than joy. I have proposed putting in a nine-hole mini-golf course there, but my wife says it will hurt the future selling price when we eventually move. Can this possibly be true? — K.

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Updated: Sun Oct 09, 2011

Rent With Option for 10/02/2011

Sun, 02 Oct 2011 00:00:00 -0700

Dear Edith: My tenants signed a rent-with-option agreement to close in May 2012. They've maintained the property for 16 months and paid the rent on time. Their credit may not allow them to fulfill the purchase on the above date. I would like to find a way to close the deal. Are there any creative ideas? — J.A.

Answer: Perhaps "seller concessions" would help your tenants q ...

Updated: Sun Oct 02, 2011