Homeowners Ghyath Issak and Barbara Weber hired Laurence Wright to do remodeling work at their residence. They paid him approximately $27,000 over four months. Later, Wright sued them for an additional $11,000.

The homeowners cross-complained for fraud, based on Wright's underreporting of his payroll of only $312 to his workers' compensation insurer and his lack of a contractor's license, as required by state law.

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DEAR BOB: I have frequently heard if your mortgage calls for monthly payments, you can make a significant interest savings if you pay twice monthly. For example, my mortgage payment is due on the first day of each month. I would like to pay half of my monthly payment 15 days before the due date and the remainder on the due date. But my lender says the only way I can do this is through a third-party company, which will then charge me a sign-up fee of several hundred dollars plus a monthly fee.  more...

If you enjoy speculating in real estate, you will like "Making Hard Cash in a Soft Real Estate Market" by Wendy Patton and Justin Ryan. The reason this is a book for speculators is the authors suggest real estate buyers should purchase in "emerging markets" rather than in their hometowns, as most realty investors do.  more...

DEAR BOB: Recently I saw a newspaper article about work done on a house without a building permit. I have had much work done to my home without permits. When I sell the house, is this a case of "buyer beware"? Or could there be a problem with the building inspectors if the buyer wants to make a stink? My house now has more square footage than shown on the official county records. Would I be taking a risk if I mention my home's square footage? --Steve M.  more...

DEAR BOB: To avoid probate costs and delays when I pass on, I recently created a revocable living trust and deeded my condo title into it. I am 62 and plan to get a senior-citizen reverse mortgage in about eight years when my current interest-only mortgage converts to an amortized mortgage. Does having the condo title in my living trust prevent my getting a reverse mortgage? --Alan W.

DEAR ALAN: No. As long as you have sufficient equity in your principal residence, holding title to it in your revocable living trust won't prevent you from obtaining a reverse mortgage.  more...

Are there any foreclosures, short sales or distress properties in your town or neighborhood? If you answered "no," you probably aren't paying close attention to the local real estate market.

Good times or bad, these situations always occur. Even during the peak years of 2004 and 2005 for home sales, there were still mortgage lender foreclosures and distress property sales. Today, the numbers of these sales are rapidly rising. If you're interested, the current buyer's market in most cities is a great time to acquire these below-market-value properties.  more...

DEAR BOB: There should be a law requiring home buyers to listen to your advice. I failed to do that when I bought my house in Florida almost two years ago. I have been trying to sell it for over a year. The market in my town is very depressed due to rising property taxes and high insurance costs. I foolishly paid all cash. I have had my house listed with three different Realtors. None could sell it because of the lack of buyers.  more...

Like many small towns, the City of Hanford wanted to retain its prosperous downtown commercial area without discouraging "big box" stores such as Wal-Mart, Home Depot, Sears and Target from opening in planned commercial (PC) zones.

Hanford's downtown has 12 furniture stores. To discourage these stores from moving out to the PC area near the big stores, the city council enacted an ordinance allowing PC zone furniture sales only in stores with at least 50,000 square feet and furniture sales areas not exceeding 2,500 square feet.  more...

DEAR BOB: I am paying one-half of my son's mortgage payments, but my name is not on the mortgage papers. However, my name is on the title to the home. Can I deduct one-half of the mortgage interest and property taxes on my 2007 income tax returns? --Rhoda J.

DEAR RHODA: Yes. It is irrelevant that your name is not on the mortgage obligation. What matters is your name is on the title to the residence, making you legally obligated to be sure the mortgage and property taxes are paid.  more...

Whether you want to buy a house for personal use or as an investment, the first step is to read John W. Schaub's "Building Real Estate Wealth in a Changing Market," which explains how to cope with today's market.

For more than 35 years, the author has been investing in and teaching classes on how to thrive in any real estate market by buying houses. In his latest book, he reveals how buyers can take advantage of the current situation in home sales to acquire properties for minimum cash at bargain prices while taking minimum risk.  more...

DEAR BOB: I've read your articles for years and find them incredibly helpful. But I'm wondering about mortgage refinance junk fees. I know we consumers have the right to avoid these fees, but my experience has been these lender fees usually come at the end of the refinance process after the mortgage is finally approved. How should borrowers distinguish between "real" fees and unnecessary junk fees? Will we ever find a mortgage without junk fees? --Nan S.  more...

"Should I sign the mediation and arbitration clauses in this home sales contract?" That question is frequently asked by home buyers and sellers of their real estate agents.

Frankly, there is no right or wrong answer, but all the parties should be fully informed before making their decision to possibly give up legal rights.  more...

DEAR BOB: Who pays the taxes on a once-in-a-lifetime, $1 million property gift? --John L.

DEAR JOHN: Nobody! When an individual donor gives away up to $1 million in cash or other assets, he or she must file a federal gift tax return with the IRS. But no federal gift tax will be due if the donor has not previously given away more than $1 million tax-free under the $1 million federal gift tax exemption.

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DEAR BOB: My parents died in 1993 and left their home to me in excellent condition. In 2007, the state took the home by condemnation for a new road. Over the 14 years, the condition of the house has declined due to neglect, but property values in the vicinity have generally increased. Can I claim no increase in my basis because of the decline in condition and the need for repairs? --Harold B.  more...

Ann Burns held a life estate in a house that was destroyed by fire. Mitchell Weiss was the trustee of the Kent Burns Trust, which held the remainder interest in the house.

Burns insured her interest in the house with Fair Plan. The trust insured its interest in the same house with Clarendon National Insurance Co.

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