I have tons of equity in a rental house and I want to eliminate the headaches. Do I have to buy another rental to delay capital gains?
Perhaps you can put your money in land which may increase in value. One requires you to "work" while the other choice needs little to no upkeep. See your tax-person.

Our fico scores hover at 500. What is your advice to be in a position to buy before our pre-schooler is in college?
First, you might buy today, but at what cost? High closing costs, coupled with high interest rates could make it undesirable or impossible. Obtain your complete credit report and negotiate all your negatives. Pay all your bills on time. Use credit cards only when necessary or NOT at all. Don't close your accounts. Keep your balances at least less than half of your credit limit on each. Pay more than the minimum at least if not able to pay off each month. If your car is ailing, give it penicillin, steroids or a transplant; but don't incur another large, lengthy monthly obligation.

Do I have any recourse against my lender who collects impounds each month? They did not pay the second half of our property taxes on time.
Yep. If penalties were incurred by the county or a resulting late fee assessed on your loan, notify lender by certified mail that you desire reimbursement and any negative on your credit removed or you will see them in Small Claims Court.

I desire an equity loan on the large manufactured home I own as a shareholder in a 5-star park. I have met with only negative responses. Why?
A manufactured home is personal property. It must be attached permanently on its own land to be considered real estate. Only real estate is eligible for a home equity loan or a senior citizen reverse mortgage.

What does a "Notice to Creditors" mean?
A mandatory ad in a newspaper prior to a business being sold. If people owed money from a business owner do not respond before the sale is culminated, they are "out of luck."

My felon-husband fled the country a number of years ago. I want to sell the house we own as joint tenants. What can I do without his signature?
Seek out a real estate attorney to assist you in obtaining sole title. There is something called "quiet title."

What is the "down leg" of a real estate transaction?
Term used mainly in an IRS 1031 Real Estate Exchange, i.e. the property you are selling to purchase another - which is the "up leg."

We, as buyers, now regret agreeing to real estate arbitration to settle our case. We lost the arbitration award. Can we now take the seller to court?
Nope. Absent extraneous circumstances, the arbitrator's decision stands.

What is the major reason for preparing a "living trust?"
Avoiding probate upon your death.

So what?
Probates can cost alot of money and much time; all this time the property sits idle.

Our Homeowners' Association (HOA) has changed our C.C.& R.s effectively precluding the rental of the unit I presently occupy. Is this legal?
No, if the changes were drawn up by the Board of Directors only. To have the enforceability of conditions, covenants and restrictions (CC&Rs), those changes must be voted on by the members of the association. If they were, yes, they are legal.

In order to qualify for a home loan, a friend was advised to obtain an Employer Identification Number (EIN) and open bank accounts to establish new credit. Should he?
It is a crime to misrepresent your Social Security number, lie on a credit application, or obtain and EIN under pretext.

What is a "No Neg Loan?"
An adjustable loan with no negative amortization provisions. The loan amount can therefore never grow for any reason.

What does "egress" and "ingress" mean in a property's description?
The ability to reach a road from a parcel of land - coming and going, in and out, entering and leaving.

Would this have anything to do with an "easement?"
Yep.

My sister says she has a "tenancy at will" on her recently sold property. Was she right to accept that in the terms of the sale?
Probably not. She simply has a right to occupy property at the will of the new owner. Ugh!

Does "deposit" and "earnest money" have the same meaning?
They are generally used interchangeably in real estate transactions.

What is a landlord responsible for in a rented property?
Heating, plumbing, gas, electric, waterproofing, hot and cold running water, floors and stairways in good repair, building and grounds clean and sanitary as well as free of rodents, etc.

How about torn, frayed and dirty carpeting?
The first two: owner must repair (safety first!); third: it's the tenant's dirt. He cleans it.

We were issued a mortgage credit certificate (MCC) when we purchased our home two years ago. Can we claim the tax credit when we refinance?
Yes, but only if you secure a new MCC.

Will the credit increase when I refinance?
Check with the issuer; if you have a variable interest rate, it might affect the amount of your eligible credit.

What will increase the basis price of my house?
An addition, replacing an entire roof, paving the driveway, installing central air conditioning, rewiring.

What about installing new plumbing?
Good question. I would assume so. Check with your taxman.

What will decrease the basis price of my house?
Insurance or other reimbursement for casualty losses, deductible casualty loss not covered by insurance, payments received for easement or right-of-way granted, depreciation allowed if home is used for business or rental purposes and value of subsidy for energy conservation measure excluded from income.

On average, how long does it take to complete an eviction once it's filed, either uncontested or contested?
Either way with the Sheriff: about 25-35 days. Hang-ups and delays in services, etc. influence the time period.

Are there restrictions as to how many people can live in a rental unit?
Yes. Contact the building and safety office of the city. Health and safety standards cannot be exceeded no matter the fact that a tenant is willing to pay extra.

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.

What is a Deed in Lieu of Foreclosure?
The act of giving property back to a lender without foreclosure.

Sounds like a good way to solve a "problem," right?
Well, it depends upon your view. Owner will no longer be in debt but his credit report will still consider the act as a foreclosure.

Why?
Owner was in arrears and would have "lost" the property anyway.

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.

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. 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. 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 or can’t I legally deduct from my yearly income tax?
Interest, late fees, taxes; no association dues, Mello Roos assessments or fire/homeowners insurance premiums.

I am in escrow for 2 weeks; the home needs many hidden repairs. Can I cancel?
Yes, and your deposit returned.

Can the new landlord/owner increase my deposit to two times the new rent?
Yes, if your not under rent control.

My tenants must move due to termite extermination. Must I pay them for the days of non- occupancy?
Simply deduct the 1/30th of the monthly rent for each day.

Can I appeal an adverse arbitration award if it is erroneous?
If there is no fraud or corruption by the arbitrator - NO.

What's a "pooch or dog park?"
A completely enclosed area where dog, supervised by their owners, are allowed to run free without being leashed.

Do I have to pay rent if I get a notice to move?
Of course.

How long is the usual probate?
Without a planned estate, perhaps 7-9 months and attorney's fees.

What is a non-conforming use property?
The use of a property that violates present zoning regulations but is allowed to continue because it began before the change in zoning.

What is an "instrument?"
Legal document created to effect the rights and liabilities of the parties to it, i.e. a deed, will or lease.

What is a landlord responsible for in a rented property?
Heating, plumbing, gas, electric, waterproofing, hot and cold running water, floors and stairways in good repair, building and grounds clean and sanitary as well as free of rodents, etc.

How about torn, frayed and dirty carpeting?
The first two: owner must repair (safety first!); third: it's the tenant's dirt. He cleans it.

We were issued a mortgage credit certificate (MCC) when we purchased our home two years ago. Can we claim the tax credit when we refinance?
Yes, but only if you secure a new MCC.

Will the credit increase when I refinance?
Check with the issuer; if you have a variable interest rate, it might affect the amount of your eligible credit.

What will increase the basis price of my house?
An addition, replacing an entire roof, paving the driveway, installing central air conditioning, rewiring.

What about installing new plumbing?
Good question. I would assume so. Check with your taxman.

What will decrease the basis price of my house?
Insurance or other reimbursement for casualty losses, deductible casualty loss not covered by insurance, payments received for easement or right-of-way granted, depreciation allowed if home is used for business or rental purposes and value of subsidy for energy conservation measure excluded from income.

On average, how long does it take to complete an eviction once it's filed, either uncontested or contested?
Either way with the Sheriff: about 25-35 days. Hang-ups and delays in services, etc. influence the time period.

Are there restrictions as to how many people can live in a rental unit?
Yes. Contact the building and safety office of the city. Health and safety standards cannot be exceeded no matter the fact that a tenant is willing to pay extra.

What is a Deed in Lieu of Foreclosure?
The act of giving property back to a lender without foreclosure.

Sounds like a good way to solve a "problem," right?
Well, it depends upon your view. Owner will no longer be in debt but his credit report will still consider the act as a foreclosure.
Why?