Q & A with Dottie Herman

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Q1 - My wife and I currently came across some financial hardship and we are unable to pay our full mortgage payment at this time. If we call our lender will they work with us on our payments? We have never had an issue until now and we have lived in our home for 6 yrs.

A - Yes, what you are experiencing is not at all uncommon these days. Your lender should be able to offer you some options that can help you get back up-to-date on the payments. Unfortunately, the lenders normally do not offer this until you have started to miss payments and this process will impact your credit rating negatively. Your best course of action is to call your lender and explain the situation. They can advise you as to what is available and how the process would work. Good luck!

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Q2 - When does it make sense to refinance? I have 5 years left on my mortgage and my rate is 6.25%. Does it pay for me to refinance? What fees will I incur?

A - The best way to look at a refinance for the purpose of reducing your payment and rate is first: How much do your payments go down, and how valuable is that to you?  Then look at the cost of refinancing and divide the monthly savings into the cost to see how long it takes to recoup the closing costs.  This can vary greatly from state to state and even county to county. If your payments go down $200 a month and you recoup the closing costs in less than a year, it would be a good move.  The decision will, in the end, be based on your needs and priorities but this is the best way to evaluate the refinance.

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Q3 - I am thinking of selling my summer home near Lake George. It is a unique home and there are not many homes in this exclusive area. How would I determine the market value of my home if there is nothing comparable on the market in the area, and no home has sold here in a number of years, as it is a very small town.

A - You may elect to hire a professional Appraiser to price your unique home. Appraisers can draw from a larger pool of comparable sales and employ formulas that take into account the special features of your property. You may also benefit from inviting top brokers who specialize in sales of homes in this exclusive area and ask them each to make a pricing recommendation. The data you gather should be helpful to you in making an informed decision about selling the property. You may also wish to consider renting the popular as Lake George is a popular vacation destination and ask the real estate professionals what the summer rental rates are.

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Q4 - I live on Long Island and I know many realtors, and I am thinking of putting my home up for sale. Do I have to use a realtor who works in my area, or because there is MLS,  can I use someone I like from a surrounding town? Does a local realtor have more information about homes coming on the market or potential buyers?

A - Hiring a local real estate professional has several advantages, including their track record of sales. In addition, the neighborhood specialist also knows all the amenities of the areas (shops, schools, houses of worship, parks and recreation, transportation, taxes etc.). Most importantly, real estate professionals in an area usually have developed an excellent rapport with each other and with lenders. The credibility factor among them is key to knowing how well they qualify their buyers. Bringing in a broker who is unfamiliar with the area and does not have the relationships, may present too much of a learning curve.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

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