Question: My wife and I live in a mobile home park and would like to know if HUD can help us pay off the balance on our double wide and move it onto a piece of land?

We are constantly harassed and the investors are trying to repossess our mobile home, even though we are current. If we miss an insurance payment they threaten us and if we miss paying the property tax they threaten to take our home from us.

Answer: If you are obligated to pay taxes and insurance then those costs must be paid on time and in full. As to what FHA financing may be available, please contact local lenders and ask about the Title I program. Under Title 1, loans for as much as $64,800 are available for the combined cost of a lot and manufactured home.

Question: We're interested in purchasing a home. We no longer want to rent, but fear we will have difficulties because of credit and because it is difficult to get money together for a large down payment. Any suggestions?

Answer: Buying a home is a big decision and it is entirely normal and reasonable to have concerns. That said, you cannot let fear limit your options. The best approach is to speak with local brokers and lenders to find out what choices might be available to you in terms of housing and financing. As you learn more it's likely that your concerns will begin to be reduced.

Question: If I am a real estate salesperson, what would it cost and where would the money be allocated as far as the marketing budget is concerned? How much should I budget for marketing if I were to attempt to get into this field?

Answer: There are many businesses which have both cash and non-cash costs for marketing.

For instance, suppose you work for a broker and volunteer for floor duty -- you would then get a chance to work with prospects drawn by the broker's advertising, location, name recognition, etc. There would be no direct cost to you.

As you become more successful, you might then want to establish your name as an individual. This can be done with print and e-mail newsletters, newspaper advertising, a personal website, flyers and other materials developed for listed homes and as someone who provides local market condition reports.

Question: We have a purchase agreement to buy a townhome but the seller in the last week had a change of mind. She just did not show for the closing and has not responded to us since. We have been told we may take her to court, but that time in the court system and our legal fees may not warrant it.

We have been told it is a binding contract and only if we file with the courts for a case will another buyer be aware that there is a standing contract on the property if she tries to resell. Is there another option? Would a lien be an option?

We are under a time issue as our outstanding and unused loan is only available until Friday this week.

Answer: First, you may be able to sue for "specific performance" to force the owners to sell. Second, you may have a substantial cause for damages. With mortgage rates rising you may lose the lower rate represented by your current loan commitment. A new loan at a higher rate may cost you thousands of additional dollars if the owner does not go through with the sale. Please speak with an attorney or legal clinic for details -- and ask about contingency fees if it is necessary to go to court.

A call from an attorney to the owners explaining the potential liability associated with not selling may result in a quick resolution of the problem without the need for an actual court date, liens or anything else.

Question: I am considering selling my home on a land contract. The buyers are willing to pay a down payment, pay me $1,200 a month in rent for six months and then purchase my home. Will I have to pay capital gain tax at the end of the six-month period? If they decide to back out and I put my house back on the market, do I have to live in the house for another two years to get the capital gains write-off?

Answer: It is perfectly possible to rent a home for six months and to still obtain a residential write-off. As the IRS explains: "To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years before the sale. The ownership and use periods need not be concurrent. The two years may consist of 24 full months or 730 days. Short absences, such as for a summer vacation, count as periods of use, but longer breaks, such as a one-year sabbatical, do not. The taxpayer also must not have excluded gain on another home sold during the two years before the current sale."

If you do not need more occupancy time, why not just sell the property and skip the complications of a land contract? For details, please see the appropriate professionals.

Question: I have $45,000 in home equity debt, and have recently become unemployed due to an illness. I do receive disability and SSI, but the amount is small. I have the opportunity to buy a smaller home that is more affordable for me, and I have a buyer for my house. If I sell my current residence I could pay off all the debt I owe plus have $10,000 for a down payment on the new house.

The problem is because of my circumstances I can't get the new loan because of the loan I have outstanding already, and I can't sell the house to pay off the loan till I get a qualifying loan for the new house or I risk becoming homeless. Should I go to a bank a mortgage broker, will my paying off all the debt be updated in my credit report fast enough for me to apply for a purchase loan? Help, I am losing sleep over this debacle.

Answer: It's a common practice for people to buy a replacement property before the first one is sold. There are risks, especially if the first home remains unsold or sells for less than expected.

Typically by listing a home you would qualify for a "bridge" loan that would allow to raise a downpayment for the replacement property. When the first home is sold, some or all of the debt on the second home could then be re-paid. (One big risk here is that the first home remains unsold and that you then have financing on two houses to carry.)

However your situation is not typical. You have a buyer at a price acceptable to you. Have a real estate attorney prepare a sale agreement which is contingent on your ability to buy and settle on the replacement property. With a sale agreement and deposit in hand, lenders should be more interested in financing the second home. As well, before contracting anything, have a lender prepare a good faith estimate of closing costs so you can be sure the sale will generate enough money to meet your goals.

Question: We are trying to sell my mother's house. She and my dad lived there for 43 years. My dad past away in 2004, there was no will, but her name was on the title. Will there be a problem trying to close?

Answer: Before you can close you need to have the right to sell the property. If the property was held by your mother and father in a "tenancy by the entireties" then generally the survivor gets the property upon the spouse's death. This happens automatically because each spouse has a full interest in the property. Since the survivor already owns the property, there is nothing to convey in a will.

If your mother was the sole owner of the property, then you next need to ask whether she left a will and made you the sole owner. If yes, you can then begin to think about selling. However, before placing the home on the market speak with a local attorney to assure that you have clear title.

Question: I just got my real estate license. I am having difficulty choosing a broker. Please give me some advice.

Answer: As you are new to real estate you want to associate with a broker who can train you in the practical skills that you need to be successful. Look for brokerages with training and mentoring programs, and consider working as an assistant to a top producer.

Question: I have 13 parcels of commercial property which I would like to sell, but I am worried about my tax responsibilities. The properties are probably going to bring about $1.2 million with very little owed.

I wish to use the money from the sale for investments and would consider purchasing properties in another state. What are my options?

Answer: Your first job is to sit down with a tax professional to see the extent of your tax liability and the amount of cash available to you after all costs are paid off.

As to what to do with the money, that depends on the alternatives available, your investment preferences, the level of risk you find acceptable and the amount of reward you seek. These are deeply personal issues and not something an outsider can determine for you.

Have a real estate question? Send your inquiry to Ask Realty Times. Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here. For past columns, please press Ask Realty Times.

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.

Published: December 30, 2005

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

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