If I pay additional monies on my interest-only loan, will my payments go down accordingly?
Many do. It is wise to check with your lender prior to signing those loan documents to clarify exactly what you are agreeing to pay and the advantages and disadvantages.

How much will paying Mello-Roos increase my monthly payment?
If your lender requires an impound account, then it will increase by at least one-twelfth of the total yearly MR assessment.

Then I can deduct it from my income tax, right?
No. Mello-Roos charges are paid in your tax bill; however, they are not deductible since they are assessments. Check with your taxman.

My hot water is in the garage on a raised platform in front of my car. Does it comply with the latest code?
I have been told it does; however, if it was my HW, I would certainly install steel posts in front of the heater to be on the safe side.

Must I pay tax to the Franchise Tax Board at the time of closing escrow on the proceeds of the sale of my house?
Yes. There are exemptions and several rules to follow but the withholding is 3-1/3%. You will be apprised of this in escrow.

Will the escrow officer withhold and remit the necessary tax due the state when we sell our house?
Yes, escrow can for a small fee.

My mother wants to will her share of the family home to me. She doesn't want it to go to my dad who is also on title. Can she?
Yes, if the ownership is in Tenancy in Common. If they own the property in Joint Tenancy, her share will automatically be owned by your dad.

Can she make him change the type of ownership?
The only way dad will sign the change of title, in my opinion, would be if he got dreamy-eyed generous. Good luck.

What's the difference between "effective" age and "chronological" age?
Chronological is the actual age = a house built in 1985 is actually 20 years old; however, the effective age might be more or less depending upon its condition (wear and tear).

What is "Ductwork?"
The metal tubing from 6-12" in diameter which distribute heated or cooled air from the central system throughout the building. Duct tape holds the tubing together.

Oh, what if the tape gets old and falls off?
That is primarily why you should inspect the ducting on a periodic basis.

My tenant told me his nonrefundable cleaning deposit is illegal?
Yes, it is illegal. However (sigh), you are allowed to deduct from the security deposit a reasonable cleaning charge after vacating the rental.

It has been hinted to "fudge" in various areas of my home loan application. If I keep my fingers crossed, am I "home free" if the loan is funded and I move into the home?
No.

I want to acquire a property below the border in Baja on a 1031 exchange. Is this permitted to forestall payment of capital gains?
The property must be located in the 50 states to defer taxes due.

Is it legal to inquire of a tenant clarification of his doubtful Social Security number?
Yes and further, if he does not clarify to your satisfaction you may choose to decline his application for rental.

Does this apply to purchasing also?
Yes, I do believe it does.

When is graffiti considered "art?"
Never. It is a crime.

How many types of swimming pools are there?
Five. 1) above ground, the cheapest; 2) figerglass reinforced plastic; 3) vinyl-lined in-ground; 4) gunite - a mixture of cement and sand over mesh; 5) poured concrete - actually poured into wooden forms.

My home has increased in value since obtaining a Reverse Mortgage. Can I take advantage of this increase?
Yes. Seek advice from your Reverse Mortgage lender.

My home is about to be lost in foreclosure? Can obtaining a Reverse Mortgage save my house?
If you and the property qualify, yes.



I still owe money on my home? Can I get a Reverse Mortgage?
The equity (what the house is worth minus what is owed) dictates your eligibility amount.

How much are the new limits for Home Keeper and FHA's Home Equity Conversion Mortgages?
Fannie Mae will boost its loan cap for the Home Keeper program and all other mortgages to $359,650, up from the current level of $333,700. HECM loan amounts vary by location, but they will range from a maximum of $172,632 in rural and non-metro areas to $312,896 in major cities -- up from the previous ceilings of $160,176 and $290,319, respectively.

We supplied a well-known on-line computerized lender with tons of personal information 2+ weeks ago. "It" now needs $300 to provide us with a prequalification letter. Is this the norm in the industry?
No, not in my sphere of influence. Call me for a referral.

Can filing a bankruptcy stop a tenant's eviction after receipt of a judgment?
No. The BK should be filed prior to issuance of the eviction judgment.

What is a Graduated Payment Mortgage and do you recommend them?
Any loan where the borrower pays a portion of the interest due each month during the first few years. The payment increases gradually during those years to the amount necessary to fully amortize the loan during its life. It depends upon how long you intend to keep the home and/or the loan.

As a homeowner, am I liable for injuries to those doing work on my home?
Yes. Verify that your "contractor" is licensed and insured. Your insurance may not cover such incidents.

What does "principal residence" mean?
Where you hang your hat, cook your meals, sleep and take a bath, etc. If it is on wheels or a permanent foundation, or even floats qualifies.

Why does my use of a finance company reflect poorly on my credit scores?
They charge high interest and fees which indicates your poor credit management, even if you pay in a timely manner.

I was told I can't buy FHA in a particular condo complex, only conventional. Why?
If the percentage of the units are tenant-occupied is high, the less marketable the units will be at resale.

The county records show a fixer-upper is a 2 bd, 1 ba. Will an appraiser measure and include the non-permitted added 1 bd, 1 ba?
No value should be given without permits and it must have been done in a workmanlike manner.

I plan to sell my tenant-occupied house. How do I alert tenant of the intention to sell and to show?
Inform occupants in writing of the forthcoming sale and eviction. Notification by phone or personally is still permissible.

What types of cleaning must a tenant perform to avoid deductions from security deposit?
The same level of cleanliness as it was at the inception of the tenancy. My advice: take dated pictures.

I rent space in a mobile home park which is never maintained and facilities are seldom in working order. What's my recourse?
A nuisance action may be brought by the District Attorney.

Can I display a flag on my condo patio?
Yes, unless it affects public health or safety.

How do I know if the house I am purchasing is in a Mello-Roos District?
Ask the seller, his agent, your agent. Mandatory disclosures must be presented to the buyer immediately after opening escrow. You will know either sooner or later; why not sooner?

Loan documents are ready for me to sign. The lender does not answer my questions satisfactorily. Must I sign them?
NO. You can even change your mind within three days after signing them.

I feel I am a victim to unfair loan practices. Where do I get help?
Contact the county office of Consumer Affairs or the DA.

What is a vacation home, really?
If it was used personally more than 14 days or 10% of the days it was rented.

My elderly wife died and I want to clear the title into my name as surviving joint tenant. How?
Generally: record an affidavit of survivorship and a certified copy of the death certificate. To protect your heirs, file it soon.

What are "no doc," "low doc" or "stated income" loans?
If your income is based on projects and freelance work, you are self-employed or an independent contractor and have good credit you might not have to submit much proof of income.

My lease says that a security deposit is non-refundable. Really?
No. Security deposits are to be deducted only when there is a legal basis. This would be unlawful income.

My home insurance man continually bugs me about increasing coverage. Should I listen to him?
Most definitely. If your house is devastated, it will not be replaced. You house has increased in value, pay the money to increase its replacement coverage.

Can I get better insurance rates if I install deadbolts, burglar alarms, certain roof coverings, etc.?
Yes. Insurance is a good investment in SoCA.

Is it true bad credit scores can adversely affect my ability to obtain many forms of insurance?
It is true at this time. Legislation is pending.

Does property loss history enter into my insurance rating?
Yes. Be truthful when applying for insurance.

How can I find out how many insurance claims have been made on my house and car in the last five years?
Go to www.ChoiceTrust.com. You will be surprised as to the extent of content.

Predatory lending. What is that?
Some say it is those that seek out unsophisticated consumers enticing them to pay higher interest than they could qualify for. Caveat emptor - (buyer beware!).

How much time do I have to recover my home before it's published at Trustee Sale after the Notice of Default is filed?
Twelve (12) weeks, three (3) months with an additional sixteen (16) days grace period.

Can I get a real estate loan if I don't have any credit references on my credit report?
Yes; but perhaps you should consider opening an account or two and paying them on time to establish good credit.

If there are errors in my credit report, do I have to wait for them to be corrected before applying for a mortgage?
No. Contact the bureaus and correct them boo-boos. The lender can help in this regard also.

How does the escrow office earn its money?
Clears title, reviews for compliance all pertinent documentation, calculates prorations, draws up deed, receives loan funds, record deed, disburses monies, closes escrow and sends final documents to all parties.

I just learned my credit report states I am deceased and, hence, have no credit score. Help!
Search for the creditor that reported you no longer living, contact them in writing. They will update the file and bring back your credit score.

What is a good percentage of existing credit I can reasonably have on my revolving accounts?
It is recommended no higher than 30% of your high credit amount be maintained.

My deceased father-in-law paid for several mislaid/unfound insurance policies. Assistance please.
The American Council of Life Insurers - www.acli.com - offers guidance in tracing missing policies.

What areas in Southern California have rent control?
Only Los Angeles, Santa Monica and West Hollywood.

Why does my landlord charge so much when interest rates are so low?
Everything else has gone up. It is time to buy.

Can I force my tenants to allow me to gain access for pest extermination?
Yes, after giving them 24 hour written/verbal notice.

I looked over the Transfer Disclosure Statements (TDS) and do not like what I see. Can I cancel my escrow?
Yes, within 3 days after personal delivery; as well as cancelling any time if the TDS are never delivered to the buyer during the escrow.

A tenant supposedly has a long criminal record. Where can I get some info?
The FBI has all that info on a very private nationwide database. Try a screening company such as RentGrow.