Question: I have a $62,000 lien on real property. It's recorded on the official records. Still, the owner was able to get a $77,000 home equity line of credit. How can a lender provide such financing when there's already a lien on the property?

Answer: The lender likely concluded that all debts and liens on the property were significantly less than the market value. Example: The house is worth $500,000, the first mortgage is $100,000 and your lien is $62,000. Remaining equity: $338,000. Also, of course, money from the home equity loan might be used to pay off your lien.

Question: I'm planning on buying my first home in two years. I just want to get some information on what I can expect when I apply for a mortgage for my first home sometime in 2008 so that I may start planning today, especially regarding what downpayment I will need.

Answer: Down payment requirements vary from $0 to 3, 5, 10, 15 and 20 percent down, depending on the loan program you select. In addition to a downpayment, you will also need money for closing.

Settlement expenses vary by jurisdiction, a local real estate broker should be able to estimate the costs of a home in any given price range.

It makes a great deal of sense to think ahead when buying real estate. One step to take is to check your credit report regularly to assure that it does not contain incorrect information or out-of-date negative entries. You can get three free credit reports per year -- one from each of the major credit reporting agencies -- by going to AnnualCreditReport.com .

Also, by planning ahead you can begin a systematic program to bulk-up savings, pay down debts and pay all bills on time and in full to enhance your credit rating.

Question: What are the benefits of subdividing a 20-acre ranch? And are there any disadvantages?

Answer: Given that all properties are unique, there are potentially an unlimited number of pros and cons. But to hit a highlight, before going further speak with local real estate brokers about the costs of subdividing, the market for parcels, and the sale options available to you. For instance, do you want to subdivide or do you want to sell the property to a developer who will do the work?

Question: What was the average price per square foot for single family homes sold in 2004?

Answer: The real estate market consists of new and existing homes. For new homes, figures from the National Association of Home Builders show that the median 2004 house had Nehemiah organization .

For programs in your area, speak with local brokers, community groups and area housing offices.

Look into the FHA Title I program as one financing option.

Also, consider the purchase of a home where an owner is willing to make a "seller contribution" to offset your closing costs. Local brokers and lenders can tell you more.

Question: I decided to buy a townhome. When I told the appraiser that this was a PUD, he raised his valuation by $10,000. What are really differences between a PUD and non-PUD?

Answer: A "PUD" is a planned unit development, typically a property with a variety of housing options. PUD owners can have access to amenities which may not be available in a local community in general.

It seems unlikely that an appraiser would not know that a property was a PUD. Perhaps the appraiser learned something else from your conversation.

Question: I've lived in my home for several years and my significant other also lived there for more than two years, but we have only recently married and have lived in the home for one year in marriage. Am I eligible for the $500,000 capital gains deduction or do we both have to live in the home for two years in marriage?

Answer: You need to be married during the year in which the sale was made and you both must have lived in the home for two of the past five years. Here's what the IRS says :

"To be eligible for this exclusion, your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale. You also must not have excluded gain on another home sold during the two years before the current sale.

"If you and your spouse file a joint return for the year of the sale, you can exclude the gain if either of you qualify for the exclusion. But both of you would have to meet the use test to claim the $500,000 maximum amount."

Please speak with a tax professional for specifics.

Question: Why do I see a huge gap in the number of affordable new brick homes. In our price range, we see only all vinyl with fancy extras. We want all brick but builders seem to gear those to the upscale market. We've also noticed the brick facade homes lately, which tricks you into thinking its brick until you see it from the side! I would gladly give up a garage and fancy appliances, for example, and get the same house in brick! But why is it so hard to find?

Answer: Money. It is less expensive to use siding than to hire masons.

Interestingly enough, in the Washington, DC area there are a very large number of older all-brick homes. The reason is that at the time such homes were built there was a surplus of masons and a shortage of carpenters.

Question: I currently have my house for sale, and because recent happenings in our lives I no longer would like to keep the house for sale. My seller's agreement is for six months. I really would rather just terminate the contract and stay where we are for the time being. I feel terrible as our agent has worked hard.

Is there any way of getting out of our listing contract?

Answer: Many listing agreements contain a provision which allows an owner to withdraw from the agreement prior to termination and without penalty. In other cases, sit down with the agent and the broker and explain that you no longer wish to sell. Most brokers will terminate the agreement as a matter of good public relations, though some may ask for compensation for their actual costs.

Question: I have recently sold my home. A contract was signed,and there was no appraisal contingency. The buyers now want to back out because the appraisal came in lower then they expected. I have quit my job, and moved some of my things to another state. Do the purchasers have to buy the house, or are they scott free, and I only get the deposit?

Answer: You need to look at the agreement to see if there is a provision which would allow the buyers to back out without penalty. In the event of improper default, however, some forms say the seller keeps the deposit, some say the seller can keep the deposit or sue, and others say the seller keeps the deposit and also has a right to sue for damages. As well, some agreements say the broker is entitled to half the deposit up to the value of the commission.

However, while a sale may not be directly dependent on a given appraisal value, it may require financing -- and the lender may require a certain appraised value before making a loan. Thus it may be possible for the deal to collapse because financing is unavailable.

For details, please have the agreement reviewed by an attorney.

Question: I am a mortgage officer. I have a client whose current mortgage is not recorded with their county and they are refusing to re-sign a new copy. Is there anything that I can say that might change their mind?

Answer: Decline the loan. That will get their attention and either they will re-sign the documents or they will need to go elsewhere for financing. Suggest that they have their lawyer review the paperwork so they can be certain your request is proper.

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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.