Where do all these Questions and Answers (QandAs) come from?
Over the years I have chronicled many Frequently Asked Questions (FAQs) put to me relative to residential real estate buying and selling in California's San Bernardino and Riverside Counties.

I have quite a bit of money being held by the intermediary in my 1031 Tax Deferred Exchange. I am under the impression I will not earn interest on the money. Why?
I would definitely check with your CPA because it is my understanding that you can receive benefit of that money at the closing in the form of a 1099 INT statement.

How many properties can I buy or sell in one 1031 Exchange?
As many as you can afford and are able to secure within the required timeframe.

What assurance do I have that my money is secure while being held after the close of my income property escrow?
Qualified Intermediaries are required by law to secure very high limit fidelity bonds.

Can I purchase a property to be used in an exchange prior to the sale of my income property?
Yes. It is referred to as a Reverse Exchange.

How many times can I claim the capital gains exclusion on my residence?
There is no limit to the times you can utilize the IRC 121 principal residence sale excemption; provided you meet all requirements of term of occupancy.

My daughter advises me that it is a bad idea to even think about a Reverse Mortgage. What do you think?
First, seek advice from your banker, your tax advisor and/or your attorney. My opinion: your daughter might be more interested in there being equity for your heirs when you can no longer maintain the home or die.

Is it true I cannot legally evict a registered sex offender who has been my tenant for years - I just found out about this fact?
As strange and as sad as it seems, you would be guilty of discrimination. (Who makes these "laws?")

I read the word "FIRPTA." What does it mean?
Foreign Investment of Real Property Act. The IRS receives 10% of the gross sales price from seller's proceeds if the seller is a foreign person.

What is a Home Equity Line of Credit (HELOC)?
A variable-rate, revolving line of credit based on the available equity in your home.
So, what's the difference between that and other 2nd trust deed loans?
You have continuous access and only draw what you need when you need it and it offers lower interest rates.

The equity in my home exceeds 22% but my lender will not eliminate the PMI payment. Why? The loan was made in 2001.
Have you paid your payments in a timely manner? Have you other liens on the property? Your overall credit history (fico scores) just might hinder you being successful also. Be forceful and demand to know why.

Is it true a poor credit score will haunt me forever?
No. It will rise, slowly, as new info is added to your bank and credit bureau files. Your old, bad credit will have less of an impact as time passes.

What is an "involuntary lien?"
A lien imposed against property without the owner's consent, as in unpaid taxes or special assessments.

What does it mean when a measurement says "front foot?"
A standard measurement of land, applied at the frontage of its street line.


What is "Full Disclosure?"
Sellers and their brokers must divulge all pertinent facts regarding a house, good or bad - or else.

What does "cleaning up" credit really mean?
Each person's credit is as distinctive as their personality. Many people have incorrectly been led to believe their ancient problems will keep them from buying a house. Some items should be paid and then removed. Let's look it over.

I owe the IRS and I had a bankruptcy. Can I buy a house?
There are loans out there for you BUT they are not easy to get and are expensive.

MLS (Multiple Listing Service). What does that mean?
Brokers and their agents combine all their listings in one computer base, which is accessible by all other brokers and their agents. It is a valuable tool benefiting everyone - buyers, sellers, the industry as a whole.
Explain?
Any house listed on the MLS is available for you to buy and me to sell you.


Bob co-signed for Jim to buy a home but Jim didn't make the payments. Bob had signed a quit claim to Jim, but the lender still hounds Bob. Why?
When you sign (quit) all claim to a piece of property, you DO NOT also eliminate your responsibility for the repayment of the note you signed as a co-borrower.

Three years ago I bought a car and it turned out to be a lemon. I gave it back to the dealer. Now I'm told I still owe a lot of money. Can this happen?
Yes. Let's talk.

Is it a good idea to buy a car first and then a house?
Qualify and get the house first and then you can increase your debts by buying the car.

Why do we have to be pre-approved before buying?
To determine what price home you can afford. I work together with loan specialists to clean up your credit before we go "lookee-looing."

Are you available evenings and weekends to show properties?
Every day. All the time. 24/7 (24 hours/day-7days/wk).

When is the right time to start talking to you?
Yesterday! Today! Tomorrow! Just call JONI.

What are "comps/comparables?"
Short for recent sales of similar properties in a neighborhood.

We're getting a divorce. Can I buy a house before it's final?
Probably, if you still are talking to each other.

Mello Roos can add a lot of $$ to my payment. Can I claim it on my income tax as a deduction ?
Some people construe them as a tax, but ask your tax man.

I receive AFDC and my son receives SSI. Can I buy a house?
A possibility, but you might also need a co-signor.

What is escrow and how long is it?
A neutral third party who processes the documents and/or money to hold until specified conditions are met in a specified period of time, i.e. proration of taxes, insurance, homeowner's fees, etc.

Why is it cheaper to buy in the Inland Empire?
The closer you are to the ocean - L.A. or Orange Counties - the land is worth more. Build four identical houses the same day and year- one each in Huntington Beach, Corona, E. Highland, and Hesperia. The price decreases the further east you go.

What's an "underwriter?"
A well-paid person who reviews all the documents supporting your loan and issues loan approval.

How long do I have to live in a HUD house?
One year.

What is Renting/Leasing with an Option?
You lease a property at a certain rental with a stipulation to buy at a future date for a certain price.

What are prepayment penalties?
Fees paid to the holder of a mortgage/note if it is paid off before the due date.
Do all home loans have them?
Check/read the loan documents you sign(ed).

What is equity?
The difference between the amount you owe and the amount you can sell (market value).

Mortgage companies collect impounds each month. What are they?
Taxes and insurance - "pay as you go." Each month you pay on the principal owed plus interest and 1/12th of your estimated yearly taxes and insurance. It's easier all around that way.

What is piti?
p=principal, i=interest, t=taxes, i=insurance.

What's a note?
A promise in writing to pay a prescribed amount of money.

What are C. C. & R.s?
Covenants, Conditions and Restrictions. All condos and/or PUDs have "Rules of the Condo/PUD Project," including the CC&Rs and are furnished to the buyer in escrow.

My student loan is in default. What should I do?
You can't hide. Contact the lender or let's talk.

What about the former loans on a repossessed home?
All loans are paid off in the foreclosure process. They are sold "free and clear."

What is "Mortgage Insurance?"
It is protection to the mortgage lender against the borrower defaulting who invests less than 20% down.
What did you say?
If borrower doesn't pay his monthly payments, the lender forecloses. The insurer (FHA, VA) pays the lender what is owed on the property and then they own it. Inasmuch as FHA is part of HUD, HUD owns properties which were insured by FHA.

What do you think about a bi-weekly mortgage plan?
Steer clear of these rip-offs. To reduce your principal similarly, simply add one extra monthly principal payment per year.

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 canceling 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.