What is "seller carryback?"
The second trust deed which is held by the seller instead of a higher cost 2nd issued by a mortgage company.

What is Net Operating Income (NOI)?
Actual earnings, after deducting all expenses, including interest and depreciation from gross sales/income.

Are Reverse Mortgages recommended?
It depends: for those over 62 who have substantial equity in their homes and want to spend their "twilight years" in the house.

What is a "Due on Sale Clause?"
If a loan is not paid off at time of sale (buyer "assuming without qualifying), the loan can be foreclosed.

What is RESPA?
Real Estate Settlement Procedures Act. Requires lenders to disclose the loan costs. Demand a Good Faith Estimate when working with a lender.

I know there are lots of types of mortgages today; how do I know which one is best for me?
You probably don't. It is recommended you work with a lender who is not only knowledgeable but who has access to all the loans available no matter what your circumstances are.

How will I know if he has all the different types?
Ask him. If he can't rattle off numerous loans and a comfortable one for you, move on.

You don't like credit counseling organizations very much. Why?
Your credit report will reflect their use. It can be as bad as a bankruptcy. Learn as much as you can regarding your credit card debt, etc. prior to resorting to their use.

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.

When refinancing, should I take out another 30-year old?
Nope, let's try for at least a 20 year payoff or a 15. You will save tons of money that way.

I am in default on my home mortgage. I'm trying to sell it. Time is running out.
If you haven't contacted your lender, do it immediately. Do not file bankruptcy until after you have exhausted all avenues and have established a repayment plan with your lender. Negotiate to dismiss the foreclosure during the repayment program.

What is this about a CPSC furnace recall of numerous models?
Yes, if you own a home, perhaps you can check with The Gas Company or a serviceman. If you are contemplating purchasing, it is one of the items a good buyer's agent knows about.

I heard that my employer can run my credit report?
NO ONE can legally run your credit without your permission.
Can I really get a free copy of my credit report as they advertise?
Yes; within 60 days of being denied credit, insurance or employment; or you are unemployed; on welfare; the report is fraudulently inaccurate.
Can I at least find out what's in my credit report?
Yes, reporting agencies must share all information with you - if you ask.

I was asked to pay an advance fee for a loan. It sounded fishy so I didn't pay. Is it legal?
Nope. No one can ask for or accept money for their service until a loan is made.

What is "equity stripping" and do you recommend it?
A loan based on the equity in your home, not your income. You risk losing your home. Ye gads!

I drive 40 miles to and from work each day. Is leasing a car a good deal?
No way. In the long run, it's cheaper to buy.

I bought a home recently and never received a copy of the $350 appraisal?
Shouldn't my lender have given me a copy?
Yes, most assuredly, within 15 days of its receipt. You paid for it; however, the appraiser is the lender's client.

Is there a new law re: 60-day termination of month-to-month rental agreement?
Yes, 30 days - less than one year's tenancy or property is being sold. Otherwise 60-days is the rule.
How about increasing my rent more than 10%?
Sixty-day notice is required for 10%; less than 10% it's 30 days.

All those involved in the purchase of my house declared verbally or in writing where required that I am connected to city sewer. First it was declared a septic tank; now I find it is actually a cesspool system. Help!
Wow. Too involved; but keep posted.

I keep hearing about mold common in bathrooms. Is it all dangerous?
Of the 1000 species of mold, most are not to healthy people. Mold is everywhere in and outdoors. Clean affected area with bleach and most importantly correct the underlying water leakage.

As a first time buyer, can my relatives help me purchase?
Indeed. Your parents and grandparents can even contribute from their IRAs penalty-free.

Is it good to "shop" for financing a home or refinancing a loan?
Yes. Include several of each: mortgage brokers who will shop their sources; and direct lender banks and mortgage bankers. Interest rate is not the only requisite to a good loan. A Preliminary Cost Estimate is a MUST.


I keep hearing about mold common in bathrooms. Is it all dangerous?
Of the 1000 species of mold, most are not to healthy people. Mold is everywhere in and outdoors. Clean affected area with bleach and most importantly correct the underlying water leakage.

As a first time buyer, can my relatives help me purchase?
Indeed. Your parents and grandparents can contribute from their IRAs penalty-free.

Is it good to "shop" for financing a home or refinancing a loan?
Yes. Include several of each: mortgage brokers who will shop their sources; and direct lender banks and mortgage bankers. Interest rate is not the only requisite to a good loan. A Preliminary Cost Estimate is a MUST.

Who owns the sidewalk in front of my house and where does my property end, at the curb?
Generally, you do and to the middle of the street. Easements are dedicated to the public and you are restricted from interfering with the public's use. Sidewalks, contrary to common belief, need only be maintained by you in safe condition.
How about those trees I planted ten years ago on the median strip?
You planted 'em. You take full responsibility.

Neighbors have been using the rear of my property as a walkway or thoroughfare for years. Can I erect a restrictive fence?
Take thee to thy attorney. The "interlopers" might have a prescriptive easement.

I am contemplating installing upgrades to be eligible for the utility companies' rebates. A good investment?
Absolutely. They pay for themselves in a very short time. See my website regarding EEM, Energy Efficient Mortgages.

A woman called to tell me she was my loan processor. Huh? What does she do?
She is responsible for gathering all the documentation necessary to present to "Underwriting" for approval.
Underwriting; underwriter? Sounds like someone scribbling under a table. Explain?
Underwriters analyze and review all the processed documentation. The "buck stops" in this department. Approval = Loan Funds.
I keep hearing the words "fund" and "funding." Fund (noun)= a pile of dollars, a piggy bank. But as a verb?
Yep. Fund (verb)= the act of transferring money, i.e. successfully making the loan amount available. Some lenders can fund in a couple of days; others have to scrounge around and find it in many more days. Important: Confidence in Lender.

I want to hold title in my home with my son as joint tenants. Good idea?
To avoid probate, perhaps, but how about seeking the advice of an attorney re: living trust.

I want to buy a fixer. How can I get a contractor who is bonded and licensed?
Nat'l.Assn Home Bldrs 800 368 5242. State Contractors Lic Bd. 800 321 2752.

When should I give my 30-day notice of ending my tenancy?
1) Get advice of lender and agent; 2) ANY date of the month is legal. Consider offering a 30-day notice with an option to extend if move-in date is delayed.

My friend's home inspection report shows pages of deficiencies. The seller says he won't fix anything other than that which the appraiser and termite inspections found. Can he back out?
What were the terms of the offer? A Home Inspection is not a Mandatory Repair List to the Seller. A flawless home is not required by law or by contract. Advice to sellers: Prepare your House for the Inevitable Close Scrutiny in all Nooks and Crannies.

Are trees, hedges, bushes and other plantings along boundary lines construed as spite fences?
Yes.
Can I cut the branches from my neighbor's tree which are obstructing and causing us "irritation?"
If the trunk is solely on his property as well as the branches, you better not. Trespassing.
How about the branches overhanging onto my property, as well as part of the trunk?
If rural property, rulings suggest you saw away; however, if on a 3500 s.f. lot, I suggest caution and permission.

How many smoke detectors am I supposed to have in my apartment/house?
One in every bedroom and any hallway.

I want to close escrow and allow the seller to rent back until his new house is finished. Good idea?
Advise your insurance agent, draw up a rental agreement, obtain advance payment of rents and a large deposit. Your agent/escrow/attorney can assist you in this.

I own an eight-unit apartment complex. Must the water heaters in my single-family dwellings comply with the same water heater rules and regulations?
Residential dwellings designed for four or less families are exempt.

What does "turn-key," or "move-in condition" mean in a home listing?
Just turn the key in the front door and back the U-Haul up to the door. No need to paint, recarpet or even clean. It is ready to occupy as it sits. (It might be a bit of a stretch in some instances.)

What is all this concern about mold? What causes it?
Water leaks, constant, stagnant moisture breeds wood rot/damage and mold to exist and, if not treated or removed, it will continue.
There is a black, fuzzy growth on my daughter's bedroom wall. What should I do?
Ask an expert. Perhaps start at your favorite Lowe's.

My former landlord said "no" when I asked for my deposit back when I moved into my house. Can he keep it?
If you completely vacated the property, no. If your roommate remained in the apartment, then yes. The deposit remains with the property.

What is the best advice for maintaining my central air-conditioning system?
Buy the filters by the box. Changing them every two or three months saves you big bucks.

I want to buy a house next year. What should I do now to get prepared?
Pay all your bills on time and in full. Go to http://www.reposandmore.com periodically.

FHA doesn't require terrorism insurance. What happens if my house is damaged by terrorists?
HUD will pay all or part of the claim to the lender. Good!

What is the essence of the IRS Section 1031 Exchange?
Outlines the procedure allowing a seller to avoid paying taxes on the gain of a sold property.

What's the difference between the most used bankruptcy filings?
Ch. 13 allows you to set up a 3-5 yr repayment plan, keeping most of your possessions; a straight BK, Ch.7, liquidates your assets.
Does Ch. 7 erase all debt such as child support, alimony, fines, taxes and student loans?
These obligations are generally not included in any BK.

I've been warned against "predatory lenders." Who? What? Where?
Be aware of those who: contact you first, ask for money upfront, offer easy credit, unrealistic interest rates, short-term offers, super-fast approval, balloon payments, prepayment fees, and/or pressure you to sign.
Sounds ominous.
Not really, if you read carefully any documents relative to a lien on your present home or one you are anticipating purchasing.

A money judgment and abstract of judgment. Explain.
The $$ judgment is awarded by the court to the "judgment creditor" against the "judgment debtor." The abstract is the document which is recorded in the property's county.

What's a voluntary lien?
One which is placed on a property by the owner, such as a trust deed (mortgage). An involuntary lien?
Judgments, real estate taxes, IRS, FTB or children support obligations, etc.

Reverse mortgages are becoming very popular. Who offers them locally?
Wells-Fargo comes to mind.
What's their main advantage?
Keeping your house and increase your income, using its equity.
Is it true, to qualify, I must be over 62 and own a lien-free home?
To my knowledge, yes. The several loans offered are federally-insured.

Sam represented by a Realtor and is in escrow. He contacted the seller personally to negotiate some new terms Everyone involved is mad her him. Why?
When a buyer is represented by an agent, the buyer should remain silent and allow his realtor to act in his behalf in all matters pertaining to the offer and subsequent escrow.

My father-in-law says I shouldn't sell because my capital gains will be too hefty. Is he right?
Most married sellers can sell their home every two years and pocket up to $500K profit with no tax consequences.

Could I have deducted the interest paid on my home equity loan last year?
Yes, on loans up to $100K, although it can't exceed the Fair Market Value of your home.

What is the federal estate tax exemption presently?
Not high enough for some people, I'm afraid - $700,000.

What makes you think you are so smart?
I am not. I just read a lot of good stuff and pass it on.

I heard the word "levy." Meaning please?
A levy is the legal name for the seizure of your property through the legal process of your county.

I am about to levy against a small claims defendant. How do I do this?
The court clerk may assist you. You can buy or peruse Nolo Press' book "Everybody's Guide to Small Claims Court."

How much interest can I charge on an unpaid judgment?
Check with the clerk of the court. Annual rates differ.

I want to establish credit separate from my husband. Should I use my husband as a cosignor?
Absolutely not. A relative or close friend is preferable.

I want my maiden name back after my divorce. Any problems?
Among others, notify all your creditors and then check monthly to determine their compliance.

What's a "set-back?"
The distance in feet, usually 20 or even 100, from the property line that you are legally able to construct a building.

What's a 1) waver or 2) waiver?
1) the one on shore as the ship leaves the dock; 2) a document relinquishing (giving away) all the signer's rights to property.

I need to contact the credit bureaus of errors on my credit report. I am not good with putting my thoughts on paper. Can I get help?
Yes. The FCRA requires credit reporting agencies to provide someone to assist you.

My consumer inquiry to the credit bureaus sent 45 days ago has not resulted in removal of the incorrect data nor a reply. What is my recourse?
If your letter has not caught the attention of any credit bureau, a follow-up letter and telephone call is in order.

Do I save money by buying from a FSBO (For Sale By Owner)? If not, why?
No. If there was money to be saved, do you honestly think the seller would give you the benefit of the reduction.

Why should I utilize the services of an experienced RealtorŪ?
If you have current knowledge of the business and the various necessary California Real Estate forms involved, give it a go. Caveat emptor (Buyer Beware).

My agent asked me for a copy of my credit report with my fico scores to share with the seller. Why?
The better to win their trust that you are and will be able to close the escrow financially.

What's the last thing new home owners think of to replace?
Washing machine hoses. A burst hose or even a leaky hose can cause expensive damage.

Is it true I can save money on the title insurance upon our sale if I use the same title company as I did when I purchase my home years ago?
Both you and the buyer can save money that way. Ya' gotta ask.

Is it a good idea to store the wood from our tree removal next to the house?
Never. Termite Heaven.

I sold my rental house and the tenant won't move. What should I do?
Landlord 101 taught you how to evict freeloaders. If the tenant has a lease, the lease runs (is included) with the sale.

Should I shop for a good real estate loan?
You might have to under some circumstances. Multiple inquiries from the same type of lender are scored as a single inquiry if received within a short time period.

joan trossen, [E-MAIL]
CA Real Estate Broker / Integrity - Patience - Experience

I want to be your RealtorŪ
DRE #00353853
phone: 909 . 653 . 4341