Q & A with Barbara Corcoran

Q1 - We bought our home in 2003 and have a mortgage and a home equity. The problem is that the home equity is an adjustable, interest only 10-year loan. I really have no idea what we were thinking, but it's done. As luck would have it, we've been unable to pay off any of the home equity loan. Would it be wise to refinance and combine the mortgage and the home equity? Will this affect us in any way if we sell this year or later?

A - If you plan to sell your home within the next few years, it doesn't pay to refinance because the upfront costs will be more than what you'll save in your monthly payments. But if you expect to stay in your home longer, combining both loans at today's low rates makes good sense. But meanwhile, stop beating yourself up over it! At the time you signed on, home prices were going straight to the moon and, like everyone else, you believed the myth that "you can always pay it off!" There are another eight million people who fell for that promise, too.

Q2 - I got two price estimates on our small home in Lodi and the prices the brokers gave us are very different. How do I know which one is right?

A - Get a third estimate from another good broker and go with the lowest price given.

Q3 - We've bought a house we really like at St. George's Lake where we plan to retire. We paid all cash with the money we've saved while living in Queens. We're ready to move, but my wife wants to wait until we sell our co-op before we move on because she thinks we'll get less for an empty apartment.

A - I agree with your wife. Empty apartments get less because they look sad and they convey the wrong message of desperation to prospective buyers. If your apartment is clean and uncluttered and shows well, you're right to wait.

Q4 - I bought a house with my boyfriend three years ago and we're both listed on the deed. At closing we both agreed that if anything should happen, each of our halves should go to family. Now he tells me that my name is off the deed that he went and took my name off without my knowledge. Is that possible?

A - If your name was removed from the deed without your knowledge, there could be only two alternatives. Either someone forged your signature on a deed and transfer documents with the help of a notary public, or your interest in a property was removed by court order. First do a title search with a title company or, if you live in one of the five boroughs of the City of New York, a simple review of the NYC website www.nyc.gov/acris will show you whose name the house is now in. Al Fazio of Capuder Fazio Giacoia, LLP says if you determine that you are no longer an owner, you should immediately seek the assistance of a real estate litigation attorney who can initiate an action to return the property to its proper ownership, and if someone forged your signature on a legal document, it's a matter of both criminal and civil implications that could land your boyfriend in jail. Don't wait too long to determine your course of action.

Q5 - I had an open house on Sunday and two people came. Two hours later they called and insulted me with an offer of $300,000 even though they knew my price was $435,000! My broker told me I should give them a counter offer but I told her to have them take a walk. Where do people get the nerve to go around bothering serious people with nice houses to sell?

A - Buyers today feel obligated to put in low bids. Some of them are wise guys and some of them aren't, and it's hard to tell the difference based on their opening bid. If you are serious about selling your house, swallow your ego and listen to your broker. Counter with whatever price you're willing to accept, let's say $405,000 or $410,000, and see what the buyer comes back with. You've got just as much a chance of getting a decent $400,000 or maybe even $405,000 from that wise guy as you do of never hearing from him again. The only way you'll find out is to counter.

Q6 - We're about to sign a contract with a young couple who is purchasing our two-family house in Queens. On Sunday we found a smaller house we really like and had our bid accepted, and have already received the contract. We plan to sign that contract the minute our buyers sign their contract. I just want to be sure that's the right thing to do.

A - Slow down! Before you sign your contract on your new place, make sure your buyer has their bank commitment in hand. Today bank commitments are good for only 30 to 60 days and need to be renewed, so make sure the commitment period is long enough to cover your closing date, plus an extra month in case anything goes wrong. Only then should you sign a contract on your new place.

Q7 - I have a nice home in Orlando and I'm worried about all of the foreclosure signs my husband and I pass on front lawns in our neighborhood. Don't all those signs lower the value of our home?

A - It's discouraging to see so many signs in your own neighborhood, but there's a better way to look at it. Foreclosures always signal the bottoming of the local market because banks are willing to sell foreclosed homes at rock-bottom prices. Foreclosures define the bottom of any market, and markets need a bottom to bounce up from. Chances are good prices in your area are very near the bottom and will creep higher soon.