> Columnist Ask Realty Times
Ask Realty Times - February 20, 2004
by Peter G. Miller
Question: My husband and I, along with our two children, were evicted from our apartment four years ago. At the time we were having serious financial difficulties due to several misfortunes and ended up living with my parents. We're older now, much more responsible, and have job security with decent-paying careers. We're financially stable, and have been searching for a home to rent but are having a difficult time because of the eviction. What can we do? Answer: People have hard times for various reasons and you can understand that a landlord would not want to rent to someone with a poor financial profile. That said, four years have passed and by now you should have re-established your credit. One problem here is that you live in a property where you probably are not on the mortgage or the utility bills. That makes it hard to establish credit -- but not impossible. There are two steps to take: First, get a copy of your credit report -- it will be available to you at little or no cost. See if the information is current and correct. Second, if you do not have a credit card, get a gasoline or department store card and use it (modestly). Be sure to make full payments in advance of due dates. This will help re-establish credit. For credit report information, see: - Equifax
- Experian
- TransUnion
Question: We purchased a property and now realize the property line goes through the concrete garage pad. The driveway is attached to the house and we just didn't imagine that it was not included in the property. The property owner of the land on which the pad crosses said he knew about this issue. He was the father of the previous land owner. The pad has been this way since 1997. What recourse do we have? Answer: As a property owner you want to establish what is yours and what is not. When you bought the property did you get a survey? If yes, what did the survey say? Did you get title insurance? Was the property listed for sale? What did the listing information say? Did you have a buyer broker? If yes, did they recommend a survey? The betting here is that the neighbor/father has no interest in having a dispute with you. Speak with a local real estate attorney about obtaining an easement that can be recorded with the title. You need to settle this because at some point you will want to sell and your buyers will also want clear access to their own garage. Question: We are building a home that is supposed to be finished in April. It has a steep monthly payment, but with both of our salaries, my wife and I saw an awesome opportunity. We were the first to buy in the neighborhood for a base price of $299,000. Already, before we have even moved into our new home, the builder has had price increases on the remaining homes to bring the base amount to $326,000!!! Instant equity of $27,000!!! Then my wife found out she was pregnant (surprise) and yes, she wants to stay home with the child (surprise again!!!). Now things will be very tight, since we were counting on two incomes. We feel that because of the equity we have already got, that we should definitely go ahead and close on the home. But we are also leaning toward staying in our current, much smaller home for a few more years, and renting out the larger home. Will the lender allow this? How does a mortgage company know whether or not you actually move into the house you close on? Answer: You don't have $27,000 in new wealth. If you sold today you would have to pay a number of costs and you might not be able to sell for as much as the builder is getting. When you applied for the mortgage you said in your application that you intended to reside on the property as an owner-occupant. If you were an investor the lender would have required different terms. Thus, no, you cannot simply change your mind and instantly rent the property. And yes, the mortgage company may check -- all they have to do is see who has a telephone at the site, who pays for insurance, etc. Here's what might work for everyone: Ask the builder if they would like to cancel your contract. They could then re-sell the house at a higher price with a faster closing date and you could stay where you are. Question: I saw a house for sale, took the flyer and called the listing agent. The listing agent was out of town for a few days, and her voice mail service referred all inquiries to another agent. I called this second agent, told her that the listing agent's phone message referred me, and arranged to look at the house. I'm interested in making an offer. I prefer to make the offer straight to the listing agent, and have told this to the second agent. But this second agent claims that she would be my buyer agent. When a listing agent goes on vacation, does that mean anyone who looks at the house during that time is obligated to adopt the "substitute" agent as the buyer agent? Answer: Did you sign an agreement naming the substitute agent as your buyer broker? Did you sign an agency contract at all? Be aware that the rules establishing "agency" vary by state. You are, in essence, a consumer who wanted to look at a house. That, in itself, does not automatically create an agency relationship. You could want no representation. As well, when the substitute showed the property on behalf of the listing agent, who was the substitute representing? Speak with the broker or office manager. They will likely recommend that you have a professional person assist you in the preparation of an offer. The substitute may have a claim to a part of the commission on the basis "procuring cause." The listing agent, the substitute and the broker can then work out compensation among themselves.
This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal services or other expert assistance is required, the services of a competent professional person should be sought. | 
