Michael Dunn's Q&A

This is a matter of personal preference. Here are some things to think about:If you don not own the land, who does?Most likely the land will be owned by an HOA (Home Owners Association) and your rights as an owner would be similar to those of a condominium owner. The HOA will have quite a bit of authority in what you can and cannot do with the land surrounding your TH. You may not be able to have a garden for example, or walk your dog, etc. Other people may also be able to use the land if they wish. The only thing that you technicaly own is the from the walls in.If you do own the land, an HOA may still have some say in how you use it, but it is yours to enjoy exclusively. Your neighbors can't let their dogs pee in your yard. Generaly, you can make the decision as to what to do with it for landscaping, although I'm sure the HOA will have some guidlines.Additionally for myself, I like the security of knowing that I own the land that i live on. It gives me piece of mind that there will never be some other owner that can come and say, "Well it's been fun, but I'm going to use my land for something else now." As unlikely as that scenario may sound, why risk it?-Mike

Yes, if you are prepared to buy both properties. However, if you meant that you do not wish to complete the sale on the first home, and would rather purchase the second...then it depends. In Colorado, the commision approved contract is somewhat buyer friendly in that it alows for a number of opportunities during the due deligence period for a buyer to evaluate the property and if it is found to be un-satisfactory, allows for a buyer to terminate the contract without loosing his/her earnest money. This due deligence period is for a specific period of time, so once the final deadline has past, you are commited and if you do not proceed with the closing of the transaction, your earnest money may be kept by the seller.So, at least in Colorado, if you have not past your final deadline, you could terminate the first contract and proceed with the purchase of the second.On an ehtical note, most people assume that when a contract is signed, barring any un-forseen circumstances or problems with the property, that the parties will proceed in good faith and fulfill their obligations as laid out in the contract. Simply put, I would recomend that you deal fairly and openly with the other party of the first contract and try to work something out, before getting involved in another contract.-Mike

If you haven't missedor been late on any payments, they can't report it as delinquent. If you are participating in a loan modification program with the lender, make sure that you stay current on your payments throughout the process. The loan modification in itself, shouldn't hurt your credit. Also be sure that you are dealing directly with your lender, as there are alot of sneaky scams out there that appear to be offering things on behalf of your bank or lender, when in reality they have absolutely no affiliation. I have heard of some scams that are actually encouraging owners to let their mortgage become delinquent in order to have more leverage with the lender. THIS IS A HORRIBLE IDEA. Just make sure you are dealing with your lender, and that no matter what, you stay current on your payments.-Mike

The only one who can stop the forclosure process is the lender. If you get the payments up to date, the can withdraw the "Notice of Election and Demand" and the process is stopped. If it is done soon enough, or if you negotiate it with the lender, the fact that you were in forclosure briefly might not be reported to the credit buroughs.-Mike

If she is indeed an agent, you should contact your local board of realtors and report it. If that doesn't work, call your state's real estate commision. I'm in Colorado, and agents here could loose their license for this kind of nonsense.-Mike

Call the county assessor's office, or possibly the public trustee. Different states handle their forclosures a little differently. Sorry to hear of the hardship. Have you talked with the lender about a loan modification?-Mike

Usually the lender just wants additional documentation that this is indeed going to be your primary residence. Lenders are super cautious these days, and many of them are requiring additional verifications and documentation to do the loan. Just more paper work. Hang in there and be thankful that you are getting the loan in this market!-Mike

Lenders in my area are requiring 25 - 35% down on any loans for investment properties. If you are buying a primary residence, it is usually possible to get a loan with a 20% down. Another option would be to consolidate all of your mortgages into one loan to a corperation or LLC that you form. If you have some equity in the properties, this could simplify your payments and also free up some of the equity to use for other investments.-Mike

I don't think that creating a business would be helpful if you are the only principal. Banks will pull the credit of any pricipal/partner that is involved in a business loan. In addition, the amount of a down payment you would need for an investment/business loan is now around 25-35%...much higher than it is for a home loan for your primary residence.If you intend to live in the house as you are fixing it up, I would try to get the loan as a primary residence. If this is your first home, you may qualify for an FHA loan which only requires 3% down, and you could also take advantage of the $8000 tax credit if you close on the house before Dec 1.If you absolutely cannot get a loan on your own, your other options are: to seek a partner with good credit, to arrange seller financing of the property, have the owner cary a note or possibly do a wrap-around mortgage.-Mike

I'm not sure where you are seeing the "recently sold" term, but in many areas, the county assessors web site will have the information you need regarding the date of a sale, how much, etc. If the assesors database is not updated quickly enough to have recent sales, call the assessors office directly. Property sales are a matter of public record. Calling a local realtor would probably be the easiest way to find this out, as they have access to the most up to date information.