Q & A with Barbara Corcoran

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Q1 - Is it possible to get a reverse mortage loan on a vacant house?  I don't live in it and I don't have it rented out.

A - No, it's not.  Reverse mortgages are only available for a principal residence.  You must also be at least 62 to qualify and your home must have a very low balance on the mortgage or no balance at all.

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Q2 - My mortgage company called me to refinance.  Should I be leery?

A - No, but before you take them up on their offer, make sure you shop around.  Compare the rate they offer to others lenders'.  If you refinance with your existing mortgage company, you'll usually save on closing costs.  But don't be shy about asking them to beat the most competitive rate out there and you'll only know what that is by shopping around.

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Q3 - I went into contract to buy a house last year with a $15,000 down payment. I got a loan commitment within a month but couldn't close because the seller didn't have a CO.  By the time I got the commitment, I could no longer get the interest rate I was quoted. While I negotiated for a lower price the bank issued a denial letter and I couldn't get another mortgage.  I tried to recover my down payment but the seller's attorney would not release it. My own attorney did not file any action with the court and advised me to wait. I contacted the bar association and was advised to get a private attorney, which I can't afford. Is there another course of action I can take to recover this down payment, or anything I can do against my attorney for his lack of action?

A - Your ability to recover your down payment is totally determined by the terms of your contract of sale.  If the contract has a mortgage contingency, you're entitled to your deposit back even though the bank rescinded their previous mortgage commitment. But if you waived your mortgage contingency, don't expect to get your deposit back.  Al Fazio of Capuder Fazio Giacoia, LLP says there's also a question of whether the certificate of occupancy was ever issued, and the answer to that involves a complicated interpretation of some old laws, so you'll need good legal counsel to figure it out. You should contact a Legal Aid Society to get the help of a good litigation attorney.

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Q4 - I'm a senior citizen and sold my home in April 2006.  Might I qualify for the $8,000 tax credit if I purchase a condo before the end of this year?

A - You sure can!  To qualify for the new $8,000 tax credit, "first-time homebuyer" means anyone who hasn't owned a principal residence for three years before buying their new place.  So if you closed on your previous home in April '06, purchase your new condo any time before December 1st 2009 and you'll get that $8,000 gift from good old Uncle Sam!

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Q5 - I own a colonial style 4-bedroom, 2-and-a-half bathroom home on an acre of land in the Poconoes. I've had it for 11 years now but it's never been landscaped. How can I find a reputable landscaper? Most of the ones I've contacted don't seem serious enough to come out and give us an estimate.  Also, with the way the housing market is, does it make sense to landscape now and try to sell the property or hold off until the market hopefully picks up?

A - If you can afford to wait, you'll get a much better price later.  But do the landscaping now so you can live with it and enjoy it!  The best way to find a good landscaper is to ride around the neighborhood looking at other yards.  When you see one you like, knock on the door or leave a note asking for the name of their landscaper.  Your neighbors will happily share the information and can tell you how easy they were to work with, how much they charged, and whether they were worth their fee!

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Q6 - I applied for a mortgage with my bank, Chase, but I was turned down.  What do I do now?

A - Don't get discouraged.  First go back to Chase and find out why you were turned down.  Often there's an error in your credit report that could easily be corrected, and sometimes the bank makes mistakes when processing an application.  You might find that your credit score was not good enough and you can start fixing it by reducing your debt and making on-time payments on all your bills.  Then you can apply again in a few months.  You should also apply for a new mortgage through a reputable mortgage broker.  They can offer you clear guidance, they have a variety of lenders to call on and they can easily find out the reason for a "no."  What you should not do is take the rejection personally and give up!

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