Q & A with Barbara Corcoran

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Q1 -- I've been unemployed for a while, but I have been able to keep up with all my bills and have a FICO score of 720. I am in an adjustable rate mortgage and need to refinance to a fixed rate. Will the new housing rescue bill help me refinance or am I out of luck because of my present unemployment?

A -- Bad enough you lost your job, but unless you have other income you'll also be out of luck on the new bill. It requires that you prove you can afford the reduced mortgage the plan offers. Good for you for keeping your credit score high, and you'll have to put your best efforts toward finding a new job.

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Q2 -- Our landlord is offering to extend our lease which has 18 months left at the same price. Should we accept at the current price, ask for a decrease to extend for an additional year, or walk away and expect to find a larger home for less money in a year?

A -- If the landlord is calling you, you can be sure that you haven't heard his best offer yet! Before you even respond, go out and see what else you can rent for the same money. Information is power in negotiating, and with a list of other properties and rents in hand, you'll have the information as well as the confidence you need to negotiate the best deal possible. Remember that rents are coming down almost everywhere, so if you decide to extend your lease make sure you factor in rent drops going forward.

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Q3 -- Can a corporation apply for a mortgage to buy a residential property for the owners? My husband and I own a company and have guaranteed past loans and have paid off huge loans, taxes and rents through the years on behalf of the company. Now we'd like to purchase a co-op in Queens. Our credit score is excellent, car leases and credit cards are current, and we've saved $100,000 for a deposit. But our salary for 2007 and 2008 has dropped due to a slow-down in the market. We make sure our staff and bills get paid first before we pay ourselves. Will this affect our mortgage application?

A -- According to Al Fazio of Capuder Fazio Giacoia, LLP, many banks do allow loans to be held in a corporate name, but most coops do not. If you are able to find a coop that will approve your corporate purchase, then the bank will also approve the loan based simply on your current income. But you should consider a condo instead because they're much more open to different financial arrangements. The added bonus of buying a condo instead of a coop is they consistently out perform coops in good times and bad because most buyers today prefer them.

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Q4 -- How can I find out what my home would sell for in this market?

A -- Pricing a home is never a science and the best thing to do is ask a good real estate agent what they could sell it for. Invite three competing brokers in to visit your home and give you a price estimate. Feel good about the highest price you're given for about five minutes, and then move on to believing the lowest one.

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Q5 -- My two brothers and I equally co-own a condo in Hilton Head. It is paid for and currently worth about $900,000. My brothers live close to the condo and use it often. I live across the country and have expressed an interest in selling my share of the condo. However, both my brothers have said that they are not in a position to buy me out. My options?

A -- In the absence of a written agreement to the contrary, you're stuck with your $300,000 share. But don't let it sour your relationship with your brothers because it's not their fault and everyone went into the deal with the best intentions. Hilton Head is a popular vacation destination and homes there are very rentable. Discuss with your brothers which weeks they do not plan to use the house in the next 12 months and list the house for rent on any of the many websites that rent vacation properties, like VRBO or CraigsList.org.

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Q6 -- I recently asked a real estate agent to help me find a property, and he told me that he works for the seller. He said if I want a representative I would have to hire him as my exclusive agent. What's the difference? And who ends up paying the seller and buyer agents?

A -- Brokers can represent either or both sides, and the people they represent pay their commission or fees. If you hire a buyer's broker you'll know your broker has only your best interests at heart, and if you hire a real estate agent who works both the buy and sell side of the transaction, you can still feel confident that your interest is well represented as long as you choose a great agent. Ask friends for a recommendation, or visit your local real estate office and ask the manager or owner to recommend the best broker for the job.

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Q7 -- Even if the real estate market was to turn around tomorrow, isn't it true that sale prices would only inch up 2 or 3% a year?

A -- Although house prices are slow to unwind, they're quick to recover. In previous recessions, markets turned around and recaptured all their losses within a few short years.

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