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Eric Said:

Can I sell my home to my spouse?

We Answered:

Yeah you can but your wife will have to qualify for the home. Meaning the home will have to appraise for the sales price of the home. But if it can appraise for the sales price it sure as hell will appraise for a refinance. On an FHA you can go up to 97.25% LTV.

Anyway lets assume for some reason the home will appraise different for a purchase over a refinance. Your wife will need to have the 3% down minimum if you go FHA. There is no problem with you selling it to your wife but make sure she can qualify.

What I really dont understand is how can you get value for a purchase over a refinance. The values will be really similar either way.

Mae Said:

During a deed-in-leiu of foreclosure, the bank is demanding money.?

We Answered:

You really need to consult a real estate lawyer...

Having said that, just send the note back with a letter declining to sign and reference the surrender of deed in lieu of foreclosure. Then sit back and see if they have a reaction. Believe me, if the bank thinks that they have a chance to get you for the money, they will react to your refusal to sign. KEEP copies of all the documents that you send, and send the letter registered with return receipt requested.

BTW, I don't understand why the bank would need you to sign a note to file for mortgage insurance? All they would need is your signed document to surrender the deed to show the loss to the bank.

If the bank is trying to scam you, I think that you should see if the Az state office of consumer protection would be interested in a bank trying to scam a consumer. A threat from the state office of consumer protection would probably be enough to scare them away....

See URLs for the consumer compliant process in the Office of the Arizona Attorney General...

Vicki Said:

first time home buyer?

We Answered:

first thing i would suggest is to get pre approved. this will take out the guess work and will give you a better idea of what you can afford. After that you should be able to find a down payment assistance program in your area if you have low to moderate income. Hopefully you have good credit, or else it is going to be very difficult to obtain a loan. Hope this helps and good luck

Alfredo Said:

I think I'm Being Screwed by my Leasing Office?

We Answered:

You should begin looking for alternate housing now and see if you can find an attorney who specializes in real estate and/or landlord/tenant law to talk to for free (it should be less than a 30 minute consultation). Many community groups, civic associations, & support groups know how to get good, free legal advice by using lawyers who volunteer for charity.

I am not familiar with AZ tenant law, but it is a fair assumption that you are guaranteed nothing but timely notice (which you now have) and the option to terminate your lease without penalty or fee as a result of your landlords default.

Your rent is in no way (legal) way connected to the mortgage payment for the property you are renting unless your rental contract actually says so (that would be rare). In many cases these days, desperate property owners are renting for significantly less than their mortgage payment in the hope that the market will turn around sooner rather than later.

In general, if a property goes to auction with a rental agreement in force the new property owner is required to honor that agreement until it expires. Automatic renewals should never be assumed. You will want to be sure you speak to the new owners directly about renewing; most consider rented and long term tenants a good thing...but a few may have other plans for the property.

Samuel Said:

bank seize any other assets?

We Answered:

Generally you would be best off paying the mortgage yourself while you try to sell the house if you can. Unless otherwise specified in the mortgage agreement, the only assets they should be able to touch are the ones specifically listed in your agreement. Assuming no other homes/property have been put up as collateral, this normally means the only property they can touch is the one for which they put up money, even if you also have other property mortgaged through them.
You should be aware, however, that under normal circumstances, even if you take a slight loss by paying the mortgage and renting out the property rather than giving it back to the mortgage lender, the losses if you do it the way you suggest may be significantly higher. You need to consider how much money you have already paid into this home, as well as the effect of credit loss from defaulting on this loan (which is how the lender will normally make it appear). Future interest rates will be higher, and all the equity you built up in that home would be lost. Say, for example, you've paid $20,000 into the home. Giving it back to your lender doesn't give you back any of that money, so unless you feel that your losses from renting it out over, say, three years, would be more than that, you are losing money with your plan. Over three years, you could conceivably find a buyer for the home rather than relying on a short sale.
In any case, the short answer to your question is, no. What your CPA means when he says your assets aren't protected is that were you to declare bankruptcy, you could be forced to sell them. Defaulting on a single mortgage, while extremely bad for your credit, isn't the same thing.

Terry Said:

How do I know if my loan is non-recourse / recourse?

We Answered:

All investment property is full recourse, first or after financing does not matter one bit.

The person you called at the bank would not be involved with people trying to keep the banks money, would not know what you are talking about.

You WILL have to repay the bank, you can not keep their money like a few dishonest people are allowed for their primary residence.