Dear George: "I'm interested in a new 55+ community located in Gloucester Township, NJ. How do I check on the credibility of the builder?" -- Interest

Dear Interested: The Better Business Bureau serving southern New Jersey is one place to start. In some cases, adult properties have apartments available for visiting relatives -- perhaps you could stay for a few days to see what the property is like from the inside.

Dear George: "We signed a contract with a couple to buy our home. Our real estate broker received a letter of credit from a mortgage company. It stated that the buyers were approved. The closing was set for mid-October.

Four days before closing we were informed that the buyers were denied the loan. The loan officer who approved their loan did not follow up on the buyers. Furthermore, the lender no longer employs the loan officer. The buyers have been denied credit, and we are left holding the bag.

We also lost out on a second contract that offered us $3,000 more than we had our home listed for because they got tired of waiting. We were relocating to another city. Half of our belongings are in storage in one city. I gave a two-week notice on my job. We put earnest money down on another house.

We questioned our broker many times. It was almost daily at the end. We don't believe that he was doing his job by following up on the closing. We believe the mortgage company approved a fraudulent application. They blame it on their employee. We have been patient up until now. I believe that responsibility falls on the mortgage company. We also believe that our broker should have done a better job. Who do we contact to file a complaint? We want to file with the governmental regulators. We'll find an attorney." -- Seething

Dear Seething: Whether you are in Texas or elsewhere, there are several steps to take. In addition to the use of an attorney, seek out the regulatory officials in your state.

For instance, to file a complaint against a Texas real estate broker contact the Texas Real Estate Commission.

To file a complaint against a Texas licensed mortgage broker, access the Texas Savings and Loan Department. They can also be reached at their consumer hot line: 1-877-276-5550.

Dear George: "I would like to purchase a home in the very near term future but I do not qualify for a reasonable mortgage due to a recent bankruptcy. I have a high-paying job. I can make a sizable down payment. A relative is willing to secure a mortgage for me if I pay all fees. Can I be listed on the title as a partial owner if I am not actually on the loan?" -- Bankrupt Buyer

Dear Bankrupt Buyer: Possibly. One issue concerns the financial strength and credit-worthiness of your co-borrower -- can they carry the property on the basis of their credit standing?

For additional information, speak with lenders, consider a purchase with owner-financing, and also contact your bankruptcy attorney to see if he or she knows any financial sources that could help.

Dear George: "What are the benefits of owning a house?" -- Skeptic

Dear Skeptic: There are many benefits to homeownership. The following are a few of them:

• As a renter you pay your landlord's total cost to operate the property. This includes such things as property taxes, maintenance, mortgage payments plus an amount for the landlord's profit. For some folks this makes sense. They may expect to move in the reasonably near future or they are new to the area. They may wish to familiarize themselves with the real estate market before buying. Other reasons include an unacceptable credit history or lack of funds available for the down payment.

• As a homeowner, part of what you pay into a home each month generally reduces your loan balance and thus increases your equity.

• Certain homeowner expenses, like mortgage interest, may be deductible on your tax return.

• Real estate is a commodity and values can rise or fall. Between rising home prices and declining mortgage balances, homes are often a major part of consumer wealth.

For more articles by George Stephens, please press here.

George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: December 21, 2001

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.