Dear Michael: We are buying a new home. The seller asked if he can store his belongings in the garage for two weeks after the close of escrow. We don’t mind if she does, but would like to know if there is any risk involved.
Answer: If you don’t need the garage and you trust that your seller will move her belongings out two weeks after the home is sold, I don’t see any problems with allowing it. Make sure the terms are outlined in writing and that the move-out date is also indicated. You may also charge a refundable deposit if you are worried that the seller will not have his belongings out of the garage on time.
Dear Michael: I am not the type of person who falls behind on his mortgage but because of personal matters, I cannot make my full mortgage monthly payment. Should I write a letter to my lender requesting a loan modification?
Answer: This is called a hardship letter and must be included with the application for a loan modification. As a homeowner, you will need to describe what caused you to fall behind on your mortgage payments: whether it was a job loss, medical emergency or other issues. Also, as the borrower, you should outline what you are doing to solve the problem, how you will recover from it and what you are doing to make sure that you don’t fall behind again.
Homeowners should use the hardship letter as an opportunity for the lender to gain more understanding of the situation and make the best case they can to the bank. The hardship letter is the borrower’s opportunity to explain what he/she is doing to resolve the situation and why future payments won’t be missed in the future. This is letter is written more effectively with hard work and reflection, rather than plugging a few details into a template.
Dear Michael: I am filing my tax returns. What can I claim as a tax deduction when buying a home?
Answer: This is really a question you should ask your CPA or whoever does your taxes. I encourage you to follow up with a professional tax advisor, as I am not qualified to give advice in two areas – legal matters and tax matters.
Briefly put, providing you itemize deductions, own and occupy your home, you can deduct both property taxes paid on your home and interest paid on your mortgage. You can deduct the points and prepaid interest you make during the actual purchase, whether you pay them or the seller pays them on your behalf. Get a copy of your closing statement because your tax preparer will need it. If you don’t have a copy, contact your escrow company or real estate agent, they can email you a copy.
Michael Kayem is a Realtor with Re/max/Execs, serving Culver City and the Westside since 2001. Contact him questions at (310) 390-3337 or homes@agentmichael.com.