Question (CA): My mom and dad always planned to divide their property (less than 1 acre) between the four of us offspring. Recently, my mother decided to build a small house for my family and another next door for her at one end of the property. She would then let the rest be developed by the family into houses or condos. When she went to the city, she found that they had already zoned it for high density and that she couldn't divide it. Is there any way to have it partly rezoned for these new homes without spending all her savings trying?

Answer: It costs nothing to go to the City Planning office, or to go to a planning and zoning commission meeting to request that the property be rezoned, or downzoned, to a less intensive use. Zoning is a political process, and you don't always need an attorney to be a part of that process. Properties can't be zoned or re-zoned based on taxes or economics. It has to be "planning" issues.

Question (IN): I own a home in Indianapolis that I purchased three years ago. It's been on and off the market for almost two years. It is difficult to sell being that the housing market is slow in Indianapolis for older homes in the inner city.

I had a renter, but she moved out and it's difficult to get another renter in there. I have one of those ARM mortgage rates and I believe the rate is going to get even higher any day now. The interest rate is 12.5 percent now. I started a refinance process with a mortgage company that first promised me a rate of 6.125 percent.

However, then the loan officer kept increasing it along with adding more closing costs to it when I had to do a "no doc" loan. I would have to pay the mortgage company over $2500 in closing costs (I was originally quoted $1695) plus about $800 for title fees. I already paid them $75 with my credit card and if the loan doesn't go through, I won't get it back.

I'm wondering if I should refinance at all (with any company) or keep trying to sell it. My goal is to sell it because I already own another home and can't afford 2 mortgage payments. Even though the interest rates are climbing, I don't know if it's worth it to refinance -- paying the extra closing costs and all. Do you have any comments or suggestions? Thanks for your help.

Answer: Your situation requires help from a licensed professional such as an Attorney, CPA, Certified Financial Planner, or an Enrolled Agent to look at your total financial picture and advise you as to your best course of action given your goals versus present and anticipated revenues and expenditures. Such a professional may ask you such questions as:

1. What are your anticipated revenues and expenditures?

2. What are your Assets and Liabilities?

3. What is it that you really want to do; Sell the older home in the inner city or refinance to a more manageable interest rate?

4. According to your lender, you will be charged $805 more (the current estimate of $2500 versus the original estimate of $1695) for closing costs plus about $800 in title fees. Is this a reputable lender?

5. Did the lender provide you with a Good Faith Estimate ("GFE") for each proposed transaction detailing exactly what your closing costs will be?

6. What would be your negative cash flow resulting from refinancing as compared to setting a realistic sales price and selling?

7. Did you engage the help of a Realtor in establishing your asking price? If not, why not?

We suggest you get help from a licensed professional who you can hold accountable.

Question (NJ): I am looking into purchasing a four store strip mall. I have never purchased commercial property before. My question to you is, "What questions should I be asking the owner or agent about this commercial property before considering this property?"

Answer: Sign a representation agreement with a commercial real estate agent or firm in your market area. Interview at least three firms and agents. Ask as many questions as you can think to ask before you select the firm and/or the agent. You will most likely come into contact with the agent first, so be sure to ask questions about the agent's commercial experience first and then his or her firm's experience.

We recommend you interview agents who have successful experience with buyer representation, but inquire whether they also have any unsuccessful experience. Also, ask those agents what other questions you should be asking that you haven't already asked. If you haven't already covered it, ask whether it is a "sellers" (demand for that type of property is greater than the supply) or a "buyers" (supply of that type of property is greater than the demand for it) market for the type of commercial property you have targeted. Get some advice from licensed professionals with successful experience before risking your money.

Question (PA): We are in the process of selling our home in PA and have discovered through a Title Search that the original mortgage on our home is not marked as "paid." Our original mortgage was with a Savings and Loan Company which became involved in the S & L scandal. I'm not sure how it happened but our mortgage was acquired by another financial organization that in turn sold it. Our mortgage has been sold three times since then.

My question: Who is responsible for ensuring the original mortgage was satisfied when it was acquired by another financial institution? We have already bought another home and have a Swing/Bridge Loan on the house we are selling. I am wondering also why this unsatisfied mortgage wasn't discovered when we got the swing loan. The bank through which we acquired our swing loan paid off the mortgage on the house we are selling.

Please provide any info that you can. I am very confused by this and I am starting to panic the closer we get to settlement.

Thank you so much for any information you can provide.

Answer: I believe I understood your question but to confirm my understanding I contacted Pamela S. Longley, Vice President and Escrow Officer with Houston Title Company with whom I consult from time to time on Title issues. In addition, my co-author, Lawyer Chuck Jacobus, is a Senior Vice-President of Charter Title Company in Houston, so I'm satisfied that your question is adequately understood.

Your original mortgage was sold several times. That is not uncommon. However, the original mortgage holder failed to provide a release of lien when it was sold. The Release of Lien is sometimes filed by the lender, sometimes sent to the mortgagor, or if there is a sale or refinance involved the title company may ask for it to be returned to it for recording.

Some title companies have a procedure for insuring around a payoff they have made. You should inquire about this. Start with the title company and ask it to research and find the release document, or obtain the release of lien from the original lender, or insure around it in the event the original lender is no longer in business.