NW News - Frequently Asked Real Estate Questions

Powered by: Record Information ServicesHome > Frequently Asked Real Estate Questions

Frequently Asked Real Estate Questions

Join our Real Estate Newsletter - includes great tips and articles on the latest real-estate trends, plus lists upcoming real-estate training opportunities, clubs, or networking events.

A Note About Brokers
Q:I'm a real-estate note broker. I sell deeds of trust, mortgages and help owners get equity out of their homes. I've been doing so for about four months now. Investors are often associated with greed, unfair deals, fraud and scammers. I'm a broker who deals with investors and with mine this...Read More
Posted On: 10/01/2008

Twisted-Up Title
Q:My two sons and one son's girlfriend bought a house. The girlfriend and son broke up and she moved out. My sons then refinanced and got some money, however one son walked out of his job and all his financial obligations. The son who left also quitclaimed his interest to me leaving me, the...Read More
Posted On: 09/24/2008

Any Relief for a Bad Rate?
Q: I would like to know if I can get help lowering the interest rate for my mortgage. I have two loans. My first loan is a 30-year, adjustable-rate mortgage with a rate of 5.875 percent fixed for five years, interest-only. My second loan is a conventional regular balloon loan with a 9.875...Read More
Posted On: 09/17/2008

Pricing Problems
Q: How can houses here in Houma, La., cost close to the same as houses in Houston when the average salary in Houma is far lower than in Houston? It confuses me even more with the economy struggling right now! I try to give myself answers and that only makes me wonder if doctors, lawyers and...Read More
Posted On: 09/10/2008

To Have Recourse or Not to Have Recourse
Q: How do I know if I have a recourse or non-recourse loan on my investment property? I’m thinking of letting one of my properties go. A: Mortgages typically are recourse loans, an expression that means if the property is sold for less than the loan balance then the lender has a right...Read More
Posted On: 09/03/2008

Third Party Problems
Q: I've been trying to refinance my mortgage to avoid foreclosure. The process has been terribly frustrating, taking months and months. There are unscrupulous people just waiting for borrowers like me - I paid one company $1,000 to get through to my mortgage company because I could not get...Read More
Posted On: 08/28/2008

New financing without penalty?
Q: If the borrower has a prepayment penalty, can they still apply for new financing to stave off foreclosure without having to pay the prepayment penalty in full? My prepayment penalty expires November 2008 and the rate is adjusting upward every month, making it difficult to maintain the home....Read More
Posted On: 08/20/2008

Lawyers ‘n’ Loans
Q: What, if any, role should a lawyer have in a loan modification business? As an attorney, I’ve had two inquiries from individuals who are planning their own loan-modification companies. They asked if a lawyer was necessary to do loan modifications. If so, they plan on using my...Read More
Posted On: 08/13/2008

Can I use land as a down payment?
Q:I have a lot in Hawaii that’s worth $30,000. I’d like to exchange my lot as a down payment for a house in the same area. What should I do? A: In theory you have a good idea; in practice it won’t happen. To make your trade work you would have to find a home seller who...Read More
Posted On: 08/06/2008

Arm to Arm
Q: I now have an adjustable-rate mortgage. I've been offered a loan modification with a fixed rate for three years. However, at the end of the three-year period the rate will begin adjusting again. Can I refinance at the end of the three-year period and shop for a fixed rate or will I have to...Read More
Posted On: 07/30/2008

Demanding More Down
Q: We were all set to close on a home when the lender demanded that we increase the down payment from 5 percent to 10 percent. Since our credit was unchanged, why did they demand a steeper down payment? A: In the first half of the year many lenders and loan buyers determined that certain...Read More
Posted On: 07/23/2008

Who pays taxes on a short sale?
Q: We owe $216,000 on our house; the current market value is $190,000. There is a purchaser interested in buying the property under a short sale for $152,000. If the bank accepts this amount would the homeowner be required to pay taxes on the $64,000 difference? A: For many years unpaid...Read More
Posted On: 07/16/2008

Too Late to Modify?
Q: I’m four months behind in my house payment. Can I still go to the lender and ask for a loan modification? A: You certainly have the right to ask, but the odds are overwhelming that you will be foreclosed. Like many borrowers you likely have an impossible situation. If you were...Read More
Posted On: 07/09/2008

Title Insurance: Required with a Modification?
Q:When someone modifies their loan, are they required to get title insurance? A: The short answer is generally no, but the real answer goes like this: When a loan is originated, it’s added to the local property records. This is very important because it tells the world that the...Read More
Posted On: 07/02/2008

Faux-Market Value
Q: As a broker, I wrote an offer for a client on an FHA foreclosure house, and after a counter offer my clients were able to get the property for $374,500. Then I get a call from my client's lender today saying that the appraisal came in at $347,000 - $27,500 below the accepted price. I was...Read More
Posted On: 06/25/2008

Ask Our Broker
Q:A friend currently owns a small house and is qualified to purchase a bigger house with prices being so low. He is planning to rent the small house but wants to know what will happen if renting conditions worsen and he is forced to give the small house back to the lender or the lender...Read More
Posted On: 06/18/2008

Entitlement to Choose
Q: Please help. I may close in 30 days on a 15-year fixed-rate mortgage for $143,000. Do I have a right to choose my own title-insurance provider, regardless of what my broker says? A: You have the right to choose a settlement provider. You may find settlement providers who charge different...Read More
Posted On: 06/11/2008

Do seller-paid inspections make sense?
Q: Does it make sense for a seller – not a buyer – to get a professional home inspection, something that can be used as a sales tool to market the home? A: An inspection by a professional, independent home inspector can help establish the condition of the property, which surely is...Read More
Posted On: 06/04/2008

More on Mortgages
Q: I’ve usually heard that if you do not fully repay your mortgage, any amount owed to the lender but not paid can be regarded as taxable income. Is this true? A: The ìMortgage Forgiveness Debt Relief Act of 2007 applies to indebtedness on a principal residence that is discharged...Read More
Posted On: 05/28/2008

Getting Rid of the Balloon
Q: My wife and I are now in our early 60s. Our home was unfortunately refinanced with the world’s worst loan, a mortgage that had low monthly payments for the first three years. The initial start rate is scheduled to end in a few months, at which point payments will soar. We are fortunate...Read More
Posted On: 05/21/2008

Price-Drop Deception?
Q: I closed on a $382,000 home last summer. About six weeks later the builder reduced prices drastically by $100,000. Do I have a case against the builder because of the price changes? The builder must have known the reduction was coming when I closed, didn't offer a discount to me and...Read More
Posted On: 05/07/2008

Lenders' Loan Payback?
Q: Why are lenders crying the blues about defaults on subprime mortgages, especially those that have variable interest rates, when most of these borrowers have to pay for mortgage insurance? Don't lenders get paid back the principle by the insurance companies when the loans default? It seems...Read More
Posted On: 04/30/2008

Can We Cancel the Check?
Q: We have been looking for a new apartment, and every rental manager says they require a credit check. It will cost us $60 or $70 if we apply for a new place. Is there anyway around this cost? A: You might ask landlords if they will accept a credit report that you obtain for each adult...Read More
Posted On: 04/16/2008

Ask Our Broker
Q: I have a land contract to purchase a property. The land contract started in 2002 and now we are in a position to buy. When we applied for a loan we where told the owner cannot deliver clear title. What can we do? A: A land contract is an installment sale. As a buyer you cannot get title...Read More
Posted On: 04/09/2008

Multi-House Military Mess
Q: I’m a recent military widow. Unfortunately my husband left me too soon, and he left me with four houses and six mortgages. The interest rate on all our loans is now at least 7.72 percent; some are higher. We have spoken with our largest lender regarding a modification and they...Read More
Posted On: 04/02/2008

My mortgage company says I should modify my loan. Should I be worried about that?
Q: I’m behind on my mortgage by two months. The mortgage company said we should do a loan modification. I’m worried because I’ve had nothing but problems with this lender. I cannot refinance with anyone, due to the fact I have just finished my Chapter 13 bankruptcy. With the...Read More
Posted On: 03/26/2008

We recently filed for bankruptcy. What modification options do we have for our mortgage loan?
Q: My husband and I recently filed for personal bankruptcy, however we did not include our house. Now we’re having a difficult time keeping up with the mortgage payments and are behind 30 days. I have contacted our mortgage holder, and we’re trying to work out temporary financial...Read More
Posted On: 03/19/2008

Ask Our Broker
Q: When I bough my house I was trapped with negative amortization, and now my monthly mortgage payments are too high to pay. I used to complete my payments by withdrawing money from my children’s savings, but they are gone now and now I'm about to fall behind on my mortgage. I have...Read More
Posted On: 03/12/2008

I made a short sale on my last home. Does this disqualify me from FHA financing?
Q: I’m interested in FHA financing, but I’m not sure if I qualify. I had a home that was sold before foreclosure, so my credit report has late payments and shows that the property sold for less than amount owed – a short sale. Does this disqualify me? A: The FHA has an...Read More
Posted On: 03/04/2008

What can a borrower do if a lender goes bankrupt?
Q: I’m a real estate broker. A client is in a situation where her lender has gone bankrupt. She has called their contact number several times, but there has been no response, although – according to her – the recording says that “your call is very important to us.”...Read More
Posted On: 02/26/2008

Ask Our Broker
Q: I had a survey done on property five years after the purchase. The survey found that all the property the broker sold me is not mine. Is there someone I can report this to? A: There are number of problems with what you are suggesting. First, five years has passed since the purchase was...Read More
Posted On: 02/25/2008

Ask Out Broker
Q: I live near an area that has been dubbed the new Polo Capital of the World. It has some expensive horse farms plus equestrian communities, polo farms, etc. Prices have been going up like crazy around there. I’m very interested in getting into this market, if not to live, just to...Read More
Posted On: 02/04/2008

Ask Our Broker
Q: Planning for retirement, I recently purchased a small townhome utilizing a bridge loan from the equity in my present home. I closed on the townhouse, but in the past month my situation has changed, and I would like to sell the townhouse rather quickly. Is there a time period that I have to...Read More
Posted On: 01/22/2008

My land contract tenant abandoned the property. What can I do?
Q: I have a land contract. My tenant/buyer is supposed to pay $900 a month plus all utilities. They stopped paying rent and refused to return my calls. When I went to the property 20 days after the rent was due the doors and windows were wide open, so I called the police. I just received a...Read More
Posted On: 01/19/2008

Join our Real Estate Newsletter - includes great tips and articles on the latest real-estate trends, plus lists upcoming real-estate training opportunities, clubs, or networking events.