Question: I have an agreement to purchase a house in London and the closing date is in March. The bank has approved a loan for about 65% of the sale price. But the basic problem I'm facing is that my down payment is in another country and -- due to the political of condition of that country -- it's not possible for me to transfer funds to the bank in London.

If we cannot bring funds to closing what happens to our deposit?

Answer: Let's look at this from the owner's perspective. They expect to sell the house. They may have purchased another property because they're relying on you to close on the purchase of their home, as you have promised.

If this were in the U.S., the overwhelming probability is that you would lose your deposit money. You might also be sued for damages. However, you do have an argument which might offer some relief: Political events that impact an entire country are beyond your control, essentially man-made acts of God. Have a London attorney review your sale agreement. If closing looks improbable, then he or she will likely advise that you tell the sellers as soon as possible.

Question: We have a child who has a disability and we need a bigger home, but because of credit problems we can't find a lender who will help us. What can we do?

Answer: If your child has special needs you may be able to find charitable groups that can put you in touch with a friendly lender. There are also groups that generally help with housing such as Habitat for Humanity and ReBuildingTogether .

In addition, check with local government agencies to see if they can help with improvements such as ramps and other items.

Question: We have moved to Utah from North Dakota and plan to buy our first home in the next few months. One of our friends from North Dakota is a broker who is pressuring us to tell our Utah broker that he "referred" us.

He says he will get part of the Utah broker's commission when we buy our home at no cost to us. The North Dakota broker tells us that it would simply be a favor to him, as he's a young broker starting out and would help him make contacts in the field. We don't need this North Dakota broker as a middle man here in Utah. The whole situation seems weird.

Answer: How is the North Dakota broker helping you get a better property, price or terms? Better representation in Utah? Why should the Utah broker get less?

Referral fees in real estate are common. However, the broker making the referral receives compensation for finding a local broker for a buyer or seller, someone who works for the benefit of the client, and for doing related work.

Question: My spouse and I purchased a home without having a home inspection. This was the worse mistake we ever made.

We saw the house via the Internet, and only did a quick walk-through on the day of the closing. The broker was supposed to pick us up for the walk-thru at 2 PM, when it was light out. Instead, he picked us up at 4:45 PM and we arrived at the home when the sun was almost down. We had to be at the closing at 6 PM.

There were no lights in the bedrooms, as this is how the home was built. There were plumbing problems, it was evident in the light of day that the seller had made cosmetic improvements.

After the fact, we had a home inspection, and many problems were found.

Mortgage companies make an appraisal of a home a must, this same requisite should go home inspections. A home is a major purchase, and a buyer should be protected from having a dream turn into a nightmare.

Answer: I can't imagine that this situation would have arisen if you had a buyer broker or an attorney. The purchase of a home is a substantial matter and if the seller's broker cannot keep a crucial appointment then the owners will have to make adjustments, not you.

Given that the time for the pre-settlement walk-through was inadequate and that the original appointment was not made, why did you not postpone closing? Why did you not have money set aside in an escrow account for potential repairs?

In general, it makes sense to make a photographic record of the property at the time you make an offer so that the condition of the property can be proven. Always have hours and hours set aside for a pre-settlement walk-through, as you did with the 2 PM appointment. Bring a wind-up flashlight to the walk-through.

You have a right to obtain the property at closing in substantially the same condition in which it existed as of the day your offer was made. If the lights are out, the utilities are shut off and it's dark out then you have no way to reasonably determine the property's condition or operate appliances. For this reason you were entirely right to schedule a 2 PM appointment.

Speak with a real estate attorney for specific advice. He or she may want to contact the your attorney contact your state real estate commission, and they may want to review the transaction in greater depth.

Question: If there are several homes in my neighborhood that have gone into foreclosure, does this affect MY home's value?

Answer: You bet. Buyers will look at recent past sales to gauge the value of local homes. Whether a home is sold because an owner is moving, retiring or being foreclosed will not change the numerical values shown on sale records. The result is that a few foreclosures in a neighborhood can easily cause the perceived value of all neighborhood homes to fall.

Question: I'm set to buy my first house. I just got my inspection. But then my very handy Dad came and visited and found a major issue with the plumbing that the inspector missed. Can I use my Dad's expertise as grounds for asking for more money? Or do I have to have the home re-inspected?

Answer: You have to look at what the sale agreement says. For instance, does it merely say you can have a home inspection or does it say that the home inspection must be "satisfactory" to you and that if you are not satisfied the deal is done and your deposit must be returned? With a satisfaction requirement you have a lot of leverage. For specifics have an attorney look at the agreement.

Question: I heard that putting in a pool is a bad investment. I live in Texas, where summers get HOT. Did I hear correctly?

Answer: The real issue here is a little different: What is usual and normal for the community where you live? If most homes on the block have a pool then to be competitive when you sell you'll likely either need a pool or a willingness to accept a lower price. In a neighborhood with few or no pools you may make your home harder to sell by demanding a premium price for your property in an effort to re-capture your pool investment. Speak with neighborhood real estate brokers for specifics.

Question: How does Canadian real estate affect the American market?

Answer: Given that all markets are local, the general Canadian market has no impact in the U.S. and vice versa. What does have an impact is the preference of individuals to live in one community or another. For instance, many Canadian "snow birds" own property in Florida and thus impact certain local markets. Given the growing value of Canadian currency and the parallel decline of the dollar, expect to see more Canadian investment in the U.S.

Question: Our landscaper has an option ARM. His interest rate has risen to 7.8 percent. His principal has risen over $30K because of negative amortization. There is a prepayment penalty so he cannot get into a lower rate even if the equity were there for qualification. The lender will "allow" a refi after the loan re-casts in August as long as the pre-payment penalty is extended for a year, he qualifies for the then-existing interest rate, and an appraisal justifies the new loan. Is it likely that the landscaper will be able to refinance?

Answer: No. The landscaper's loan is now $30,000 larger than the original mortgage amount. Has the value of the property increased by at least $30,000? If not, the balance of the loan will be higher than the value of the property, the landscaper will be upside-down on the mortgage and thus not able to refinance unless he brings cash to closing.

If the value of the property has increased by more than $30,000, then have the landscaper shop for a new loan with another lender -- but do not refinance until after the prepayment penalty period is finished. This way the landscaper may be able to get a better rate and not face a big and unjustified expense.

Meanwhile, the landscaper would be smart to start saving now to cover the higher costs he is likely to face once the loan re-sets.

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