Co-Borrower Mrs. Lank, I'm looking at going into a loan as the "co-borrower." What does this mean in terms of my legal claim to the property when we decide to sell? -- G.S. Answer: Not a thing. Taking on personal responsibility for the whole debt doesn't give you any part of the ownership. All it gives you is risk. In most cases, you won't do anyone a favor by helping them get in over the heads. If you're asked to co-sign a note, think twice. You'll be putting your credit rating on the line, and depending on people whom the lender doesn't consider capable of handling the payments on their own. Co-Signer Hi Edith: My son is a first time homebuyer and I am co-signing for him to qualify for a mortgage. Does he still qualify for the $8,000 tax credit if I'm co-signing on the mortgage for him? -- T.C. Answer: Again, the mortgage is a separate matter from the title, the ownership. Your son should receive a tax credit if he meets the requirements -- hasn't owned a house in the last three years, closes before December 1, 2009, reports income less than $95,000 ($170,000 if he's married). But remember that you're taking on personal liability for the full amount of the mortgage. It will be listed as your debt on your credit record, and any problems with monthly payments would show up there too. Missing Dining Room Dear Ms. Lank: How important is a formal dining room to reselling value? -- K. Answer: That depends on a lot of factors. For instance: is a dining room usual in that neighborhood, is the house suitable for a large family or a single person, is the architecture Victorian or mid-century modern? Also important are price levels and buyer expectations for that particular street. If you're considering a specific change in your home, call nearby real estate brokerages and ask for some free advice. Local agents can judge better than I can. Deal Held Up Edith: I am buying a bank-owned condo and was set to close next Friday. Contract, down payment, financing, seller contingencies, inspections, appraisals, etc. were all in place and complete. The title company just ran the title search today and relayed to my agent and attorney that the title has a "cloud" on it. Apparently there is a different unit either next door or behind my unit on the other street that is in foreclosure, and they had a clerical mistake and used my property's legal description in their foreclosure proceedings, which places liens on my property. Have you seen this before? Is there anything I can do to speed this process up and make sure they're doing what they should be doing in my interest? -- Via e-mail Answer: Making sure things are done in your interest is the reason you've hired a lawyer. That's your attorney's job. Continued... |