Dear George: "I am trying to sell my property. The buyer wants me to owner finance the difference between the down payment and the selling price. I will not have the cash to pay off my first lien note to the bank if I do that. I am positive I told my real estate agent that I still owe money on the property. What are my options? How can I sell to this buyer yet fulfill my loan obligations to the bank? We are supposed to close this Friday. This is an issue causing major panic. Can the buyer assume my note then pay me the difference between my note and what we agreed? What a headache!" – Migraine #3

Dear Migraine #3: Communicate with your bank. Show the bank your offer details. With your good credit at the bank, I bet they'll be receptive to the idea of selling "subject to" the first lien. This is sometimes called a "wraparound mortgage." For a small fee, the bank will probably also receive your buyer's monthly payment in a trust account. The bank should then issue a payment on its note plus another payment to you for the remaining balance of each monthly payment.

Dear George: "At which web sites or schools can I find courses for obtaining both real estate and loan officer licensure? I am located in Dallas, Texas. Your help would be highly appreciated. I am an educated but unemployed person." – Educated But Unemployed

Dear Educated: I entered "Texas Real Estate Classes" in the search bar of Google.com. It returned about 81,800 "hits." Some of those hits are for schools that offer courses to obtain both types of licensure. Some of those courses are available "online." A Real Estate Broker must sponsor your license before you can legally operate as a real estate sales agent in Texas. Likewise, in Texas, a mortgage Loan Officer can only operate under a Mortgage Broker's license.

Dear George: "I live in a very large metropolitan area. I find that many Realtors® will post information about 'Asking Prices' but none will post data regarding 'Sold' prices in our area. I've also found that many brokerage firms will advertise properties for sale. But when I call, they have a million excuses as to why they can't show me a particular property. I'm beginning to think these properties don't exist. Is it illegal for Realtors® to post bogus properties in order to lure buyers in? Thanks in advance for any insight." – Apple Lover

Dear Apple Lover: In most states, but not all, the "sold" prices of properties are a matter of public record. In a few states, however, those actual selling prices are not a matter of public record. As for advertising "bogus properties," it is a violation of the National Association of REALTORS'® Code of Ethics for a Realtor® member to engage in "false or misleading advertising." As a real estate broker, not an attorney, I have not yet read any state real estate license laws that permit "false or misleading advertising."

Dear George: "I filed a Chapter 7 Bankruptcy last year. Due to the loss of my business, I also had 'shaky credit.' Since the Bankruptcy, I've acquired three credit cards. I've been making purchases up to my credit limit. I've also been making monthly payments on time. In addition, I've saved $20,000 for a down payment. How soon can I buy a home?" – Rebuilding

Dear Rebuilding: Most lenders want to see two to four years elapse since your bankruptcy discharge in order to make a home loan at competitive rates and terms. They want to see that you are able to manage your money effectively. They also want a record of "fiscal fitness." Are you living within your means? Are you able to accumulate funds (such as you have done in your savings)? Those are two examples of "fiscal fitness." Finally, lenders want to see evidence you can handle "credit accounts" in a responsible manner. In addition to your three credit cards, this includes items such as housing rent and car payments, to name two. I believe that you are on the right track.

Published: February 15, 2002

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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.