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When mortgage is sold, payment confusion begins

By Benny Kass, Thursday, June 26, 2008.

Q: We refinanced our home loan in March with an online mortgage lender. Within a couple of weeks, we received a letter from another mortgage company advising us that our May payment was to be made to them. A May payment invoice was included. I contacted the original lender and was told that the loan was not sold. They said if and when that happens, we would receive a "goodbye letter," which has not arrived. We now have May payment invoices from both lenders, and only two weeks to go until the first payment is due. more...

Home-equity loans harder to come by
By Benny Kass, Sunday, June 22, 2008.

DEAR BENNY: My wife and I bought our first home in November of last year. We paid $600,000 for the house and put 20 percent down so the mortgage is for $480,000. I've heard that opening a line of credit on the house is a good idea in case of an emergency. Obviously our house hasn't really appreciated since then, and I think we've put less than $1,000 towards the principal. Can we take out a line of credit based on the down payment because it's technically equity? Or will the mortgage company laugh in our face? Thanks! --Chris more...

Swapping vacation homes easier under IRS rule
By Benny Kass, Wednesday, June 18, 2008.

Many investors are taking advantage of the like-kind exchange, which is authorized under Section 1031 of the Internal Revenue Code. These exchanges are commonly referred to as "Starker" exchanges.

But if you own a vacation home, there has been a lot of confusion as to whether that property qualifies for the exchange.

Indeed, back in September 2007, the Treasury Inspector General for Tax Administration (TIGTA) issued a scathing report about the lack of IRS oversight of the capital gains (or losses) deferred through this kind of exchange. more...

Selling subdivided land? Keep eye on taxes
By Benny Kass, Sunday, June 15, 2008.

DEAR BENNY: I purchased 30 acres for $600,000 in 2004. This part of the county is zoned to a minimum parcel size of 10 acres. We recently built a home on one part of the property and reside there. At some future point 10-15 years from now, we may decide to sell off one or two 10-acre lots.

If I subdivided the property and sold off a 10-acre lot, what would be the tax consequences? Assume a sales price of $500,000 for a 10-acre lot. --Bill more...

Be careful buying foreclosure for business use
By Benny Kass, Wednesday, June 11, 2008.

Q: With all the foreclosures in my area, I am pondering the idea of buying a small house and converting it for business use. I have excellent credit, so I know I can do this. However, I am not sure where to start. How does one find homes that are in foreclosure? Is a Realtor needed for this? I am also not sure where to find laws/regulations on opening a small business in a residential area? more...

Lender demands PMI despite 50% equity
By Benny Kass, Sunday, June 8, 2008.

DEAR BENNY: My mother-in-law's mortgage was sold to another lender. The new lender is asking for PMI, which was not required by her previous lender. She has more than 50 percent equity in her home. She really cannot afford the PMI. Does the new lender have this right? What are her options? --Craig more...

Divorcee should wipe name from mortgage
By Benny Kass, Wednesday, June 4, 2008.

Q: My ex-husband and I bought a house in 1995. We divorced in 1999, and pursuant to our divorce decree, he kept the house and I moved out. We both remarried in 2000. My new husband and I have a new mortgage on our home, after fighting to prove to the lender that my ex has the previous house.

I know my ex has changed something on his mortgage. He was making higher payments for a year after he fell behind a couple of months. I really don't know the details because I no longer own the house. more...

Despite foreclosure, pay rent on time
By Benny Kass, Sunday, June 1, 2008.

DEAR BENNY: I recently signed a one-year lease with a property management company for a house for my family. As I was opening junk mail the other day, I came across a letter addressed to the property owner notifying her of a pending notice of default and demanding mortgage payments for the last several months in the total amount of $21,000. more...

HOA washes hands of leaky skylight
By Benny Kass, Wednesday, May 28, 2008.

Q: I purchased a condominium unit 10 months ago and the roof around the edges of the skylight has started to leak. Our management company had their maintenance people look at it and opined that I need to replace it and the cost would be mine. I disagreed with them and they asked their attorney for an interpretation. The lawyer responded that I was responsible, but I know that he did not have all documents when making that opinion since he could not provide me with a copy of the floor plans. more...

More buyers using TICs to get into condos
By Benny Kass, Monday, May 26, 2008.

DEAR BENNY: I am considering buying a condo in San Francisco. It looks like most condos advertise taking title as TIC (tenants in common). Can you please explain a little more about TIC? What are the disadvantages and advantages? --Eton

DEAR ETON: Because this is a syndicated column that appears throughout the United States, my answer has to be general. You should consult your own attorney to assist you in your decision-making.

Oversimplified, there are four ways that title can be held for your own home: more...

Selling home to offspring has its benefits
By Benny Kass, Wednesday, May 21, 2008.

SCIN. No, it's not the stuff that covers our body. It's a highly complex legal and financial transaction that may be of interest to elderly homeowners.

SCIN stands for "self-cancelling installment note." Let's take this example:

Your parents own their house but their financial situation makes it difficult to maintain the house. You are prepared to buy the house and rent it back to your parents, but because you currently have your own house, you are unable to qualify for another mortgage loan. more...

Sellers object to paying $500 security deposit
By Benny Kass, Sunday, May 18, 2008.

DEAR BENNY: I am a seller with a $620,000 home in Oregon. As part of the inspection addendum, the buyers are demanding that we put down a $500 security deposit with the title company, refundable if there is no damage to the home between now and move out. Our home is in superb condition. I assume that the refund of our money would be based on the buyers' subjective opinion, since they included no specifics of how they would determine if we would receive the money back. more...

Neighbor sabotage kills home sale
By Benny Kass, Wednesday, May 14, 2008.

Q: We listed our home for sale about a month ago, and our real estate agent has been conducting open houses. On more than one occasion, our next-door neighbor has made derogatory or rude remarks to the Realtor, potential buyers and other agents visiting on open house days.

One particular couple was very interested and even came back to see the house a second time -- only to have our neighbor "snap" at the wife. The couple's interest completely vanished following that incident. more...

Homeowners avoid tax on $1 million capital gain
By Benny Kass, Sunday, May 11, 2008.

DEAR BENNY: Friends of mine recently sold their home they owned for 22 years for $1.5 million; they paid about $500,000. They told me that they did not have to pay any capital gains tax, because their tax advisor claimed that they must have spent at least $1 million on improvements over the 20 years they owned it, although they did not have any records. He told them that it was within IRS guidelines, and their tax return was accepted without any problems. more...

Lender not happy putting wife's name on title
By Benny Kass, Wednesday, May 7, 2008.

Q: My husband wants to put my name on the deed to his house. Because he obtained the mortgage a long time before our marriage, we have been told by the mortgage company that the only way my name can be added is by refinancing. Is there any other way to add my name to the title? We are prepared to pay off the mortgage if -- and only if -- I can be on the title, too. more...

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