Q & A with Dottie Herman

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Q1 - I live in Westchester County in a condo and I am thinking about doing a reverse mortgage. Why would that need to be approved by the board of my building?

A - Unless it is written in the By-laws of your condo Homeowner's Association, mortgage refinances generally do not have to be approved by the Condo Board. Your Condo board will have to provide certain information to comply with HUD, and the lender's approval process for condominium projects, to qualify for FHA insured mortgages in accordance with the Housing and Economic Recovery Act.

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Q2 - My house is currently in foreclosure. I recently came across some additional income and I would like to get myself out of the foreclosure process. How do I go about this? Who should I contact?

A - Have your attorney, if you have one; contact the lender's attorney to get a written current payoff amount of the mortgage loan arrears.  That way you know how much you'll need to bring your loan current. The amount will include any attorney and foreclosure fees. If you are not working with an attorney, contact the lender's Loan Reconciliation department to get the current balance due. They will send you a written document that will have a payoff deadline.  You will probably be required to send a certified check, bank check or money gram FOR THE FULL AMOUNT by that deadline. Once those funds are received in full, your mortgage loan will be reinstated. In the alternative, you might also be able to work out a forbearance agreement with the lender. Good luck!

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Q3 - I currently have my home on the market; however, it has been on for a year and still hasn't sold. I am having trouble making my payments and I have a very high interest rate from when I purchased the house. Does it make sense to refinance while the home is listed for sale? Is that even an option?

A - First of all, no lender will entertain a refinance while the home is listed for sale.  Most lenders will entertain a refinance once the home has been off the market for at least 6 months, with an explanation from the borrower as to why he/she has decided to stay in the home.  Also, if someone has intentions to sell their home in the next 3 years or less, most of the time it would not be cost effective to refinance due to the amount of closing costs incurred here in New York. You did not mention if your house is listed with a real estate broker or you were selling the house yourself.  If you are self-selling, I would suggest that you contact a good broker in your area.  They are the experts and can properly price your home and give you some very valuable tips on what you can do to sell.

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Q4 - I need to move by November. I currently live on Long Island. How many months should I allow to sell my home?

A - It is difficult to predict the length of time a property will take to sell. Property type, price point, and location are all factors that will determine how quickly a property will sell. It may be most helpful to you to consult a real estate professional who has familiarity with your area and property type who can provide you with a projected working time-line based on his/her experience.

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

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