What is a "Short Sale?" An "REO?"
An owner of a property is "in trouble" as far as his loan(s) is concerned. Most likely it is because he owes more than the house is worth AND the interest rate has gone up on either one or both of them. This has rendered the house payments unmanageable. He has contacted the lender(s) and find they are just "unsympathetic." Necessarily, the owner becomes a seller and contacts an agent to list the home on the MLS. When a seller submits an offer to his lender, he is petitioning to the lender that they sell "short" of what is owed. Hence, a "Short Sale."
The listed price may be too high and no offers are received. Or, the contrary can occur: the price is too low and a bidding war occurs. Many lenders accept the highest and best offer. It is very common for a buyer to submit an offer which will not be substantiated by the eventual appraisal. Appraisals are mandatory to prove to your lender that your offer matches the actual value of the property. Seller should adjust to this value. Many do not. Escrow is cancelled.
In the meantime, seller has stopped making payments (or hasn't for many months). The lender progresses with a Notice of Default (NOD) and the foreclosure process begins. Within 120 days the loan must be brought current or paid off. When the property reverts to the lender at the end of the 120 days, the lender will set a sales price and list it in the MLS. This takes a bit of time... could be months.
When the property is "cleaned up" after the seller or tenant vacates, it is is classified as an REO (Real Estate Owned). Essentially, it is a Foreclosure or Repo (repossession). The listing and sale process is similar, but instead of dealing with the homeowner (seller) as in a Short Sale, you are dealing directly with the new owner, the "Bank." A bank could be one with branches throughout the U.S. Or they might be an investment company with no brick and mortar building with tellers, etc.


Are mobile homes eligible for reverse mortgages?
Yes, if they are permanently attached to the foundation and it is classified as real estate. No mobiles in parks where you lease the land.

My husband doesn't want to add my name to the title of our house. We have been married for many years and he feels he will outlive me anyway. What should I do?
You can't force him to include you in the ownership. This is a good time to get to an attorney. You know the old adage: "Never put off until tomorrow..."

We made an offer on a house and the seller countered back demanding the use of his designated escrow, title, lender, home inspector and even the appraiser. Is that proper or legal?
In a word, "No."

What is the definition of "junk fees?"
Charges to a borrower that are NOT paid to a third party for a legitimate service, i.e. home inspection, prepaid hazard insurance policy, appraisal.

I sold my 20 year old house several months ago. The backyard has completely flooded in the past week and the buyer threatens to sue me. Am I liable?
You are required to disclose all KNOWN defects on the [Property] Transfer Disclosure Statement. If there was nothing for you to disclose and you are sure it never flooded during your ownership, you shouldn't be held liable.
What's the difference between a "quick claim deed" and a "quit claim deed?"
The first one is an erroneous term - means nothing. The latter term is correct.
What does Quit Claim Deed mean?
The grantor (the one who is signing) conveys (gives) whatever title (ownership) in the property to whomever is stated on the Quit Claim Deed.
I have one but I don't think it has been recorded. What should I do?
A legal document should be properly filled out, witnessed and recorded to have credibility. Get thee to the County Recorder's Office pronto. Investigate the dates of prior deeds to the property. The date and time of recording rules - not the date of signing the document.

My landlord threatens to "kick me out" but I have a lease. I don't deserve to be forced out. Can he do this?
He cannot turn off the utilities. Keep your cancelled checks, money orders, etc. handy when you call the police if he does. Your signed lease is a binding contract.

Can I expect to enjoy the use of the premises without interference while living in my apartment?
Probably not. The law does not cover your "quiet enjoyment" when it comes to tenants' children.

What is a "hard money loan?"
It used to be easy to get; hard to pay off. It is High Cost Money often borrowed against your equity with high interest and a number of points.

Help! I was told I have no credit score. Is there hope for me?
Yes, some lenders will accept those who pay rent as well as other utilities, but have no credit cards or car payment.

I have three children and I'm pregnant. Can my landlord evict me.
Sorry, yes he can.

You used the term "boiler plate" on your website. What does it mean?
The legal language that is copied, unchanged, in all such documents as in Offers to Purchase Real Estate.

I saw a listing stating it is "a flag lot." Explain.
Simply a parcel shaped like a flag... with the pole attached. The "pole area" is that which usually affords access from the street to the larger buildable "flag" part to the rear.

If I sell my house to my brother for cash. Does it go through escrow?
It is certainly worth the money; get title insurance also.

I am a veteran. Must I have good credit to get a VA loan.
Yes. Many vets falsely believe that the VA is less stringent with their qualifying rules. They are not. The home you purchase must meet their high standards also.

We have a vacation home which is not a rental. Can we look forward to a tax break upon sale?
No. It is not your primary residence and you cannot utilize the IRC 1031 exchange.
What does "Disclosure" mean?
Sharing what you know, knew, heard, read, thought, spied, considered or should have experienced while owning or being a party to the sale of real property.
We are in escrow with a seller who has not disclosed numerous defects in the home. He claims the listing and instructions stating "as-is" condition precludes him from any disclosures. Both his and my agent agree with the seller. Is this true?
It is incorrect. It means the seller will not pay for any repairs. Seller MUST declare any deficiencies known to him. In today's market, as always, foreclosed properties (REOs - lender/owned) do not have to disclose that which is even obvious. Again, Buyer Beware!
But if a seller claims he didn't know because he never lived there?
Interview the tenants as well as the neighbors. If they were aware of any "problems," you might assume the owner was apprised - in the hope of them being rectified. Full disclosure precludes many legal situations.

Will my FICO score drop if I apply for new credit?
Most credit scores are not affected by multiple inquiries from auto or mortgage lenders that occur within a short period of time. The FICO scoring usually treats these as a single inquiry which will have less impact on your credit score.
So, if my scores are low, should I shop around?
No, take the assistance from someone (knowledgeable loan officer) who cares and has the ability to advise in improving your scores, i.e. negotiation with creditors, removal of faulty or paid-off debts, etc.
Or, should I just take the best loan I can now, and refinance later when my scores rise?
The choice is yours. My crystal ball says "yes."

Is it true, my friend cannot lose his house in foreclosure if he files bankruptcy?
Nope. It only delays the inevitable procedure - with more costs.

What does FSBO mean?
It is pronounced "fizzbow" which is short for For Sale By Owner.

I have been told I have to permit a sign on my property which is for sale through an agent; is that true?
No. If you don't want to advertise to the world your house is for sale, then you don't have to have a sign placed on the premises.

Does the same apply to placing the listing in the Multiple Listing Service (MLS)?
Of course, you might keep that house for a long if you don't.

Is it true there is legislation which will preclude Home Owners' Assns. from foreclosing on my condo because I am a couple of months behind in my dues?
Yes. Those comprised of more than 25 units and owing less than $2500.
Then how can they collect?
Through small claims court or by placing a lien on the property.

I was led to believe we were approved for a loan and now I can't find out why the bank turned us down at "the last minute." Is that legal?
No, it is not. Federal law states you must be able to determine if you were discriminated against. Seek out a real estate attorney.

Is it true that many house fires spread by embers blowing in underneath the eaves? How can we prevent this?
Cover the vents with mesh - thus keeping a fire from starting on the inside-out.

I want to buy, but I am shy and afraid of what it all entails?
Go to www.reposandmore.com/synopsis.htm. It spells out the many but rather simple tasks involved in the buying process and escrow.

Should I buy the property offered to me by paying a small down payment and taking over the present loan - which is not transferable.
Legal or not, you better be prepared to get financing if the lender "calls" the note.

Must I furnish filters to my apartment units' air conditioners and furnaces?
If you supplied the appliance, you maintain it. $Ugh$

I have an FHA Reverse Mortgage. My equity may have decreased since its inception; are there new rules?
I believe so. Call your lender.

An ex-landlord has notified me that if he forgives my past-due rent, the IRS might get involved? Can he and will they?
Yep, a landlord can file a Form 1099-C, which in effect indicates you had additional income.

I'm not sure my agent and lender told me to shop for insurance. Now I have to pay "Big Bucks" for a hastily obtained policy.
Nobody ever thinks about insurance until they have a loss. Caveat emptor!

Can I shop around for a better deal and cancel the "Big Bucks" insurance after the close of escrow
Nobody ever thinks about insurance until they have a loss. Caveat emptor!

We are sellers; our escrow cancelled due to buyers’ inability to obtain a loan. Can I retain their deposit?
If the contract has a loan contingency therein, no. Otherwise, probably... but good luck.

Can I qualify for a loan with a tax lien on my credit report?
If you have entered into a repayment program; if so, I suggest you contact a loan broker.

A house is being sold “as-is;” seller will not tell me what is wrong with it. Should I buy it?
Caveat Emptor (Buyer Beware). If you want a challenge and the price is right.

I built an outside laundry area behind the house I rent; owner has given me a 3-day Notice to Perform or Quit. (Tearing it down.) What should I do?
Remove it or move.

Can I deny a tenant a rental because he has been living in a group home for two years?
It is discrimination to base your refusal solely thereon.

How long is a formal probate court procedure?
Seven to nine months!

How do we avoid this costly effort?
Ownership as joint tenants is one solution. Your partner will simply own the property with the same terms upon your demise. Spend a few $$ for legal advice.

Escrow is ready to close; tenants have made no effort to move. Owners want to close anyway. Must I?
Check your escrow instructions. It should state that the property be delivered "vacant."

As a seller, what costs may I include when calculating my new basis?
Transfer and recording fees, document preparation, commission, repairs performed 90 days prior to close.

What can I legally deduct from my yearly income tax?
Interest, late fees, taxes; no association dues, Mello Roos assessments or fire/homeowners insurance premiums.

But I am forced to pay these.
Yep, them's the rules.

I co-signed to help my brother buy a house last year. Can I buy one now?
Yes, if he can prove he made the payments solely and on time.

Can I really buy a house with only 3% down or less?
There are loans available with steady income and good credit.

What are points?
One point = 1% of the amount of the loan. They are tax deductible.
Why pay them?
Paying point money up-front, gets you a lower interest rate.

Hazard Insurance. What is it?
Protection against fire, wind or other horrors.
Does Hazard Insurance include earthquake?
Only if you pay extra for it.

I don't have a bank account. Should I open one before I buy?
It is not recommended. No change in financial status should occur prior to seeking out a lender for your new purchase - on the four rules set forth by lenders: http://www.reposandmore.com/4things.htm

I am thinking of changing jobs. Should I look before I buy?
Same field? More $$$? Have at it.

I'll be getting some money back on my income tax, should I pay off bills or buy a house?
Most tax advisors will suggest you buy the house. There are exceptions, however.

Should I be afraid of a house with lead-based paint?
Not if you're informed. Probably anything built before 1978 contains some lead-based paint - many with layers applied since. Call 800-424-LEAD or 909 653 4341 for a pamphlet.

We are ready to close escrow. The seller and brokers said there are no Mello Roos. There are special assessments of $99/mo. Isn't that mello roos?
Most likely. A rose by any other name...