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Ask Realty Times - January 30, 2004
by Peter G. Miller
Question: I co-signed on a home for my boyfriend. The original agreement was that he pay half the mortgage. We broke up and in my grief I had my name taken off the title with a quitclaim deed. The mortgage company is unaware of the title change, the ex-boyfriend has stopped making any payments and I now make the entire mortgage payment -- but do not live in the property. How do I get the house back? Answer: You have a hard situation. By creating a "quitclaim" deed you gave up whatever ownership rights you had to the property. However, you are still a co-signer to the mortgage and responsible for it's complete repayment, not just half. Quitclaim deeds in most states are easy to create -- and often a mistake. Never give up title to real property without first speaking to an experienced and competent real estate attorney. It may well be that the lender will consider the quitclaim deed a change of ownership and thus call the loan -- meaning you could quickly lose the house unless it's refinanced. You at least need to be prepared for this possibility. The most logical, and least harmful, step would be to rent the property -- however only owners can rent and you are not on the title. You might want to sell -- but whoops, you are no longer an owner. Your ex could sell the property to you, but you would likely need a new loan. Then, as the owner, you could rent or sell. Before this gets worse, go to a local real estate lawyer for proper advice. It may be that the only leverage you have is to not make mortgage payments. That would force the property into foreclosure -- if the value is sufficient the loan and all fees would be paid off but your credit would be damaged. For his benefit, self-interest and good credit -- and recognizing that foreclosure is otherwise inevitable -- your ex should place your name back on the title and the two of you should then sell as quickly as possible. This would save you both substantial foreclosure fees, the possibility of a loss on the property, the potential to be sued for any loss, and credit reports that will make borrowing for a home or car at low rates impossible for years to come. Question: I recently retired and my husband will retire in several years. We make more than $4,000 monthly together and own our 1920 home of 1,600 sqft. It's an old-fashion home with space heaters, but in good condition. We have updated much of our home. My husband wants to sell and I want to remodel rather than have a $150,000-200,000 home and high monthly payments again. Within our area the homes are selling at $60,000 to $90,000 and I believe that we can sell for $89,000. I want to stay and he wants to sell. What do we do? Answer: You now have a given monthly income -- but what happens after he retires? Whether to move or not move is a personal decision. There is no "right" answer other than the one which makes sense for you both. As a start, compare the finances required for both homes -- have a chart showing monthly mortgage payments, property taxes, property insurance, electric, gas and water. Show your tax write-off with each home as well as your income today and after your husband's retirement. Then ask who will clean this new and larger home.... Question: I am a real estate salesperson. Through a business acquaintance I have the opportunity to list a three-acre property at the top of one of the most-expensive and famous communities in the country. Obviously, this will put me in the position to negotiate a large contract with influential people, something I have never before experienced. Any advice? Answer: First, congratulations. Second, your friend would not have recommended you unless he or she believed in your professional skills. Are you concerned about this matter as a business transaction or as social combat? In terms of business, there's an easy solution: As appropriate, quietly have your office manager, broker or company attorney eyeball your listing proposal and any offers to assure all bases are covered -- that's part of their job. As to the social side, people are people. The rich and famous -- just like anyone else -- will be elated to deal with someone who is professional, discreet and respects their privacy. Do your job, don't blab, do not ask for favors of any sort and the result will likely be both a sale and future referrals. Question: I have a paid-off home 500 miles away from where I now live and work. I am having trouble selling it at a price comparable to what I paid two years ago. It has been on the market for four months and the broker keeps telling me that as a two-bedroom, one-bath home it has a limited market. It's in great shape and in a very nice neighborhood. Should I rent it and then put it on the market at some point in the future? Answer: Renting will not change the size or configuration of the property. As well, many listing agreements prohibit rentals during the listing period because in the event of a sale the lease terms would have to be honored by a new owner, thus a lease can make a property harder to sell. You bought two years ago. Real estate should be seen as a long-term investment, say five or ten years. It's not surprising that appreciation has been limited. Perhaps this would work: If the property remains unsold when the listing expires, rent it. Have the property managed by a local broker. Refinance to get some cash. Then invest the cash in another property in your new location. Question: We are in the planning stages for a lake house. The great room will be 21' x 17' with a vaulted ceiling with wood cross beams (recycled from a barn). We cannot decide on the ceiling height for this great room. The ceiling starts at 16 feet (first floor height is 10 feet; second floor is 8 feet). If peaked, the great room ceiling will be 27 feet high. If flattened at the top, it will be 23 feet high. We really like the look of a peaked ceiling for a rustic cottage look, but are afraid of the height. Please advise. Answer: Is there a mechanical reason why one style would be preferred over another, say heating, light bulb changing, drainage, maintenance, etc? Would the peaked approach allow higher windows, more light or greater design flare? Do you have an architect? If yes, can he or she show you any homes with the options you're considering? Your choice is really one of personal preference. If I had a vote, I'd go for the peaked ceiling. I've seen a home with a massive stand-alone fireplace at one end of a living room, a wall of windows at the other and a peaked ceiling that was in the 25-foot range and perhaps higher. Natural light flowed into the room and because the property was in a warm climate heating was not an issue. The effect was impressive.
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