Dear Michael: We are buying a new home. The seller asked if he can store his belongings in the garage for a period of two weeks after the close of escrow. We don’t mind if he does but would like to know if there are any risks involved?
Answer: if you don’t need the garage and you trust that your seller will move all of his belongings out two weeks after the home closes escrow, then I don’t see any problems with allowing it. Make sure that 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 he seller will not have his stuff out of the garage on time.
Dear Michael: I am not the type of person who falls behind on his mortgage but unfortunately 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 borrowers’ opportunity to explain what they are doing to resolve the situation, and why they will not miss any payments 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: What can I claim as a tax deductions when purchasing a home?
Answer: This is really a question you should ask your tax advisor. I encourage you to follow up with a professional 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. Get a copy of your closing statement as your tax preparer will need it. If you don’t have a copy, contact your escrow Co. or your real estate agent they can email you a copy.
Dear Michael: If I deed my home by a Quit Claim Deed, who is responsible for any delinquent taxes?
Answer: Property taxes, mortgages, liens, and some other encumbrances are tied directly to the property, not the person that owns it. For instance, the IRS has the right to place a tax lien on your property if you are delinquent on your taxes. That lien is then attached to the property. If you quit claim your home to your son, then the lien follows the property and your son will have to pay that tax lien off if he tries to sell the property. Some good advice is to run a title search on your home. At the very least, check the taxing authority, water, sewer, and any other entity that may have the right to liens on your property. This will give you a general idea of the property status. However, there may also be judgments and other liens attached to a property that you can’t find on your own. These will be a problem when your son attempts to sell the property or get a mortgage on it. I highly advise that you have a title company do a complete title search on the property before you have it deeded.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com