Finally in frustration, he looked at one that kind of met his needs. He asked for a privacy fence to be adjoined to two other neighbors and for a cabinet to be added in the kitchen.

He has not signed the final contract or purchase papers and no closing has happened. There was only this request for a modification to the property.

He has decided he doesn't want to close, but now his real estate agent is telling him that the seller will sue him and he must buy this house. He has no choice. Is this true?

A: If your friend feels pushed into buying a home, he shouldn't sign anything. There is no contract for purchase (that will stand up in court) unless there has been an offer made in writing and it has been accepted in writing. Your friend should immediately call the managing broker of the agent's office and inform him/her that he feels pressured to make an offer and will not be going through with it.

He should also inform the broker that he will no longer work with this person. He should follow up by summarizing the call in a letter or e-mail and sending it to the managing broker.

My question for your friend is: When is he going to stiffen up his spine? This is the single biggest purchase of his life and it's easy as a buyer to simply drift away from someone. But if he doesn't want to purchase the home, he shouldn't. He has plenty of choices, both in who represents him and how he goes about making the single biggest purchase of his life. I suggest to you that perhaps your friend isn't really ready to buy and when he is, there are other agents who will treat him less aggressively.

For legal advice (I'm not a real estate attorney), he should contact a local real estate attorney to make sure that there isn't more to the agent's claim that he is legally at risk.

Q: Will a quitclaim remove my name from the mortgage or will I still be responsible for the house payment if he does not pay it?

A: A quitclaim deed removes your name from the deed -- but leaves it on the mortgage. So, you're liable for the mortgage but have no ownership rights. It's the worst possible scenario.

Q: I pulled my money out of mutual funds and put it into money market accounts just before the market tanked big time.

Where is the best place to put that cash now? I want my cash to be safe but still earn some interest. Should I put my cash into a CD or other investment?

This is retirement money and possible down payment cash that I can't afford to risk, but there must be something that pays better than a money market account but is still reliable.

A: If you want your cash to be available and safe, then choose either a money market account or a CD at an FDIC-insured bank. There aren't any other investments that are as safe or pay as well without taking any real risk.

But honestly, you will probably want to start thinking about reinvesting the funds that are for retirement back in the stock market, especially if you have more than 15 or 20 years to invest before retiring. You won't be able to beat inflation with just CD interest rates, and you'll want to make sure that you're getting in on the eventual upswing in the markets.

Cash that will be used in the next three to five years should stay in a money market deposit account or a CD, so it doesn't evaporate in the current market conditions.

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.

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