DEAR BENNY: My wife and I put together an aggressive plan to pay off our mortgage in five years, and our goal will be complete in May 2008. Can you tell us of anything we should be doing and/or asking from the mortgage company concerning the deed to our home, the property taxes or anything else? --Travis  more...

Q: We are under contract to sell our single-family house and settlement was to have occurred a week ago. Our buyers did not show up at the title attorney's office on the date spelled out in the sales contract, despite having been given notice of the time and place. Our real estate agent has not been able to get an explanation. What remedies do we have against the buyers?

A: Your sales contract should spell out what rights and remedies you have if your buyer is in default. But first, you have to make absolutely sure that there is a default.  more...

DEAR BENNY:I am looking at some property that has gone into foreclosure and will be auctioned at the courthouse in a few weeks. Is it better to try and bid on the property at the auction, something I have never done, or try to contact the attorneys handling the case and make an offer before the auction? Is there a percentage a person should bid at auction or offer the bank? There is about $580,000 owed on the mortgage, but the house has been empty now for a couple of years and is not in very good shape now. The humidity here in Florida has caused mold to grow everywhere.  more...

Sometimes, we need a painful experience to prod us into doing what we should have done in the first place.

On Oct. 1, 2007, a serious fire ravished a condominium building in the Adams Morgan section of Washington, D.C. Fortunately, it does not appear that there were any serious injuries, but many condominium owners and renters will now have to relocate until the building -- and the damaged units -- are restored.

There was property loss, both in the common areas of the building and within those units where the fire occurred.  more...

DEAR BENNY: I purchased a townhome in January 2005 with a very low, interest-only loan, and have been paying approximately 20 percent extra towards the principal each month. My fiancée moved in about 15 months ago and has been paying $600 a month. The monthly interest-only payment is $1,600. Recently we decided to double the monthly payment in addition to paying an extra $10,000 towards the principle to lower the interest portion of the monthly payment. My fiancée has asked about taking advantage of the interest deduction on her tax returns.  more...

DEAR BENNY: My elderly parents (dad is 90, mom is 86) had been living in Florida for the past 20 years, but due to bad health, I moved them to California. Do they need to change their wills or do the provisions still apply "as is"? I have power of attorney but would like to leave things as they are, if possible. --Beverly

DEAR BEVERLY: Wills should be updated periodically, even if you live in the same state.  more...

DEAR BENNY: I am a 90-year-old widower. I will have to sell my house when I am no longer able to drive. My problem concerns the possible tax on my profit. I possibly will get double my cost of 20 years ago but the dollars have lost half of their value (purchasing power) so there may be no gain at all. I call this "imaginary profit."

I understand that in the past there was no tax for elderly people when they sold their house at a gain. Is there such a law presently in existence?  more...

DEAR BENNY: We bought a brand-new home in January for $709,000, but the builder is now selling similar homes in our community for $200,000 less. My neighbors and I are thinking of seeking legal advice because they are deliberately bringing the values down. --Steve

DEAR STEVE: I don't defend developers and builders, and in fact have filed my share of lawsuits for clients against them. But I cannot agree that your builder is deliberately bringing the values down. The real estate market is in bad shape, and property values in many parts of the country are depressed.  more...

DEAR BENNY: Twenty years ago my mother placed my name on the deed to avoid issues when she passed on. Will the IRS treat this as inherited property or consider it investment property? Did I inherit her half of the property? --Theo

DEAR THEO: Why, oh why, do parents do this?

For example, let's say your mother and father bought their house years ago for $20,000 (sounds great but that was a lot of money then). For tax purposes, your parent's tax basis was $10,000 each. Your father died 20 years ago, when the house was worth $40,000.  more...

DEAR BENNY: I am considering paying off the second loan for my daughter on her house. Are there any tax consequences for either of us? --Anita

DEAR ANITA: Currently, under federal law, you have the right to gift your daughter (or anyone for that matter) up to $12,000 annually without filing a gift tax return or paying tax. If your daughter is married, you can also gift up to $12,000 to your son-in-law. And if you are married, you and your husband can each give up to $12,000 to the daughter and son-in-law for a total of $48,000 gift tax-free.  more...

DEAR BENNY: I have rented a single-family house out to the same tenant for 15 years, and this person is moving out next month.I owe $68,000 on the property and it could sell for $280,000. It probably needs $25,000 in improvements in order to sell it (unless I decideto sell it as is). I am a novice investor. However, I would like to eventually own an investment that gives me enough net cash flow so that I can go into partial retirement. The property nets $200 per month.  more...

DEAR BENNY: In a recent column, I read that 1031 property transfers had to be held for a period of one to two years to establish "intent." I thought that a law was passed in October 2004 that stated the "intent" period was five years. I bought a 1031 property in California in 2005 and would appreciate this being clarified. Thank you for column! --Nancy M.

DEAR NANCY: The column was correct and so are you -- but you both are referring to different aspects of a 1031 (often called a "Starker") exchange.  more...

DEAR BENNY: Will the real estate tax rate increase if I inherit my father's house? My dad said it might not if I take the home as a distribution. I am currently living in his house, which is under his name. My concern is that when I have the option to purchase the home, the tax rate will go up, but it may not if I inherit it by this "distribution"? Your help is appreciated. Thank you. --Lynette  more...

DEAR BENNY: My mother passed away in June leaving her home (which she owned free and clear and is located in Northern California) in equal shares to me and my two siblings. My brother is the executor of the estate and has petitioned the court to open probate.

However, before we get too far along in the process I thought we should get answers to some of our concerns about inheriting and possibly selling the house.  more...

DEAR BENNY: Our neighbor is planning on drilling a well and putting in an irrigation system. They have asked us if we would like to install an irrigation system and if so, would we like to tap into their well and help pay for it. Our neighbors across the street have a similar arrangement. The neighbors that have the well on their property pay for the electricity, and any repairs are paid for by the others that use the well. That sounds fine, but what needs to be done to make sure this agreement and our ability to use the well continues if our neighbor decides to sell their house?  more...