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Cape Gazette
Lewes, Delaware
Jim's Towing Service
October 8, 2004     Cape Gazette
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October 8, 2004
 
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34 - CAPE GAZETYE, Friday, Oct. 8 - OcL 11, 2004 Agent's offer to list condo confusing HOUSE CALLS Edith Lank rough indication of price in ads. I wrote "Low $20s," which was a typical price back there in the Dark Ages. Perhaps some agents will write in and tell us why they find it more effective to omit prices in their ads. "Always leave them something to call up about" maybe? Mortgage programs Dear Edith: In regard to that reader whose husband applied for a mortgage and couldn't claim his tips as income because he doesn't declare them. We have programs to accommodate situations like this. We do not use income tax re- turns. This is considered a stated- income loan wherein the income is not verified. If he qualifies with the income he states, then we're OK. There are other programs al- so that this individual may qualify under. Most programs are credit- score driven, and today the con- Dear Edith: A real estate person wrote to me asking if I wanted to sell my condo, and I replied that I would. She told me I had to sign a contract and pay a commission. Is this correct? The property is in Florida. - D. Y Dear D.Y.: It's possible you and that agent were talking about two different things. Did you assume she was offer- ing to buy the place for herself?. If so, she shouldn't list it or charge a commission. That would put her in the impossible position of try- ing to be your broker - legally bound to get the best possible deal for you - while she was also acting in her own best interest. It's more likely, though, that she was simply asking whether she could act as your agent, put the condo on the market and look for a buyer. In that case, she would expect you to sign a listing and promise to pay commission in the normal way. Why no prices? Dear Edith: I find it so mad- dening that some brokers will not print prices in the newspaper. How are we supposed to know if we can afford the house? I have heard a lot of people comment on this, all negatively. Please print this so brokers will stop this annoying practice, and • tell them it actually has the re- verse effect: People deliberately refuse to respond. - R.S. Dear R.S.: Years ago when I had a broker's license, I did put a Workshop focuses on business.start-ups The Delaware chapter of SCORE, the Service Corps of Retired Exec- utives, will conduct a workshop, Thinking of Starting Your Own Busi- ness, from 6:30 to 9:30 p.m., Wednesday, Oct. 27, at the Small Business Development Center, 103 Pine St. in Georgetown. The workshop will be a hands-on training session including skills needed and reasons for starting a business and is designed to cover the basics of organization, finance and marketing and the importance of a business plan. The workshop is $30 and must be paid at the Small Business Devel- opment Center prior to the workshop. For more information or to reserve a place, call 856-1555 or 645- 8006. sumer has many choices. If you have any other questions, feel free to contact me. - R.K., loan officer Dear R.K.: Thanks for your pleasant note. Another email I re- ceived was from an individual who also makes no-documenta- tion loans, and it was so nasty I can't even quote it. He tore me apart for misleading my readers by failing to mention loans avail- able to those who don't qualify in the normal way. I hadn't gone into that because I don't like to recommend mort- gages aimed at subprime borrow- ers. Such loans often involve large closing costs and high inter- est rates. They're the last thing people need when they're short on cash or shaky on credit. Paying the loan off Dear'Edith: My father-in-law has made a very generous offer to pay off the mortgage on our home. The combined principal of our two mortgages is about $40,000. He has no interest in be- ing on the deed and only wants to help us get out of debt. How Can we handle the payoff to avoid gift taxes or other un- pleasantries? - J.A. Dear J.A.: Your father-in-law can give each of you up to $11,000 a year with no tax conse- quences. If he is married, he and his wife could give each of you • $22,000, which would more than cover your $40,000 debt. If he is not married, he could give the two of you $22,000 this December. Then in January, he could start all over for 2005 and give the rest to you then: No gift tax would be due, and no gift tax return. Rental property exclusions • Dear Ms. Lank: I recently read that in some cases regarding the sale of a primary residence where the party did not live there for the required period of two years and had to pay a capital gain tax, there may be a partial tax exclusion if the sale was due to health reasons. I had to sell a rental property I owned this past year for health reasons, and it was not my pri- mary residence. Does this partial exclusion ap- ply in my case? - via email Answer: Sorry, there's no such exclusion for rental property. You are to be congratulated, though, if you have enough profit to worry about, considering the costs of buying and selling after owning the place only a short time. If you did hold it for more than 12 months, your gain will qualify for favorable long-term tax treatment. Editor's note: Edith Lank is a past director of the National Asso- ciation of Real Estate Editors and the Real Estate Educators Associ- ation. She will personally re- spond to any questions sent to her at 240 Hemingway Dr., Rochester, N. Y 14620. Include a stamped re- turn envelope. She also accepts emall at ehlank@aol.com. ROBERT V. WITSIL, JR. • Accidents & Personal Injury • Misdeneam & Felony O#erees "Zoning & Variances • DUI & Traff’ Offenses • Wills & Estates • Home Owners Associations • Corporate & Business Law • Commercial Utigation 120 South Bedford Street 420 Rehoboth Ave. Georgetown, DE 19947 Rehoboth Beach, DE 19971 855-0120 By Appointment Listing of areas of practice does not represent specialization iri those areas. !€• We know resort financing... € We know the YOUR LOCAL LOAN PROFESSIONALS programs € We know the prices We know the places € We know the people Let us get to know your needs today. 105% Construction Loans As Low as 5.00% - No Money Down - No Money At Closing Interest Only Fixed 4.875% Second Homes 95% LTV , Option Arm at 1;25% FoUr Payment Options Available Including Interest Only Lot Loan 10% Down - Interest Only ill Richard Miller Cell: 302-381-0111 Mike Meshes Rick Steele Cell: 302-236-7905 Cell: 302-249-3054 Stated. No Income, No-Dec Loans No InCome or Asset Documentation Necessary Investment Properties 90% LTV Office:302-226-Sg91 ' A A F Fax: 302-226-5990 • _.1 Toll Free: 1- 877-40-BEACH MOR CORP. "We're Making the American Dream Easy" 4343 Coastal Highway Suite 202 Rehoboth Beach, DE 34 - CAPE GAZETYE, Friday, Oct. 8 - OcL 11, 2004 Agent's offer to list condo confusing HOUSE CALLS Edith Lank rough indication of price in ads. I wrote "Low $20s," which was a typical price back there in the Dark Ages. Perhaps some agents will write in and tell us why they find it more effective to omit prices in their ads. "Always leave them something to call up about" maybe? Mortgage programs Dear Edith: In regard to that reader whose husband applied for a mortgage and couldn't claim his tips as income because he doesn't declare them. We have programs to accommodate situations like this. We do not use income tax re- turns. This is considered a stated- income loan wherein the income is not verified. If he qualifies with the income he states, then we're OK. There are other programs al- so that this individual may qualify under. Most programs are credit- score driven, and today the con- Dear Edith: A real estate person wrote to me asking if I wanted to sell my condo, and I replied that I would. She told me I had to sign a contract and pay a commission. Is this correct? The property is in Florida. - D. Y Dear D.Y.: It's possible you and that agent were talking about two different things. Did you assume she was offer- ing to buy the place for herself?. If so, she shouldn't list it or charge a commission. That would put her in the impossible position of try- ing to be your broker - legally bound to get the best possible deal for you - while she was also acting in her own best interest. It's more likely, though, that she was simply asking whether she could act as your agent, put the condo on the market and look for a buyer. In that case, she would expect you to sign a listing and promise to pay commission in the normal way. Why no prices? Dear Edith: I find it so mad- dening that some brokers will not print prices in the newspaper. How are we supposed to know if we can afford the house? I have heard a lot of people comment on this, all negatively. Please print this so brokers will stop this annoying practice, and • tell them it actually has the re- verse effect: People deliberately refuse to respond. - R.S. Dear R.S.: Years ago when I had a broker's license, I did put a Workshop focuses on business.start-ups The Delaware chapter of SCORE, the Service Corps of Retired Exec- utives, will conduct a workshop, Thinking of Starting Your Own Busi- ness, from 6:30 to 9:30 p.m., Wednesday, Oct. 27, at the Small Business Development Center, 103 Pine St. in Georgetown. The workshop will be a hands-on training session including skills needed and reasons for starting a business and is designed to cover the basics of organization, finance and marketing and the importance of a business plan. The workshop is $30 and must be paid at the Small Business Devel- opment Center prior to the workshop. For more information or to reserve a place, call 856-1555 or 645- 8006. sumer has many choices. If you have any other questions, feel free to contact me. - R.K., loan officer Dear R.K.: Thanks for your pleasant note. Another email I re- ceived was from an individual who also makes no-documenta- tion loans, and it was so nasty I can't even quote it. He tore me apart for misleading my readers by failing to mention loans avail- able to those who don't qualify in the normal way. I hadn't gone into that because I don't like to recommend mort- gages aimed at subprime borrow- ers. Such loans often involve large closing costs and high inter- est rates. They're the last thing people need when they're short on cash or shaky on credit. Paying the loan off Dear'Edith: My father-in-law has made a very generous offer to pay off the mortgage on our home. The combined principal of our two mortgages is about $40,000. He has no interest in be- ing on the deed and only wants to help us get out of debt. How Can we handle the payoff to avoid gift taxes or other un- pleasantries? - J.A. Dear J.A.: Your father-in-law can give each of you up to $11,000 a year with no tax conse- quences. If he is married, he and his wife could give each of you • $22,000, which would more than cover your $40,000 debt. If he is not married, he could give the two of you $22,000 this December. Then in January, he could start all over for 2005 and give the rest to you then: No gift tax would be due, and no gift tax return. Rental property exclusions • Dear Ms. Lank: I recently read that in some cases regarding the sale of a primary residence where the party did not live there for the required period of two years and had to pay a capital gain tax, there may be a partial tax exclusion if the sale was due to health reasons. I had to sell a rental property I owned this past year for health reasons, and it was not my pri- mary residence. Does this partial exclusion ap- ply in my case? - via email Answer: Sorry, there's no such exclusion for rental property. You are to be congratulated, though, if you have enough profit to worry about, considering the costs of buying and selling after owning the place only a short time. If you did hold it for more than 12 months, your gain will qualify for favorable long-term tax treatment. Editor's note: Edith Lank is a past director of the National Asso- ciation of Real Estate Editors and the Real Estate Educators Associ- ation. She will personally re- spond to any questions sent to her at 240 Hemingway Dr., Rochester, N. Y 14620. Include a stamped re- turn envelope. She also accepts emall at ehlank@aol.com. ROBERT V. WITSIL, JR. • Accidents & Personal Injury • Misdeneam & Felony O#erees "Zoning & Variances • DUI & Traff’ Offenses • Wills & Estates • Home Owners Associations • Corporate & Business Law • Commercial Utigation 120 South Bedford Street 420 Rehoboth Ave. Georgetown, DE 19947 Rehoboth Beach, DE 19971 855-0120 By Appointment Listing of areas of practice does not represent specialization iri those areas. !€• We know resort financing... € We know the YOUR LOCAL LOAN PROFESSIONALS programs € We know the prices We know the places € We know the people Let us get to know your needs today. 105% Construction Loans As Low as 5.00% - No Money Down - No Money At Closing Interest Only Fixed 4.875% Second Homes 95% LTV , Option Arm at 1;25% FoUr Payment Options Available Including Interest Only Lot Loan 10% Down - Interest Only ill Richard Miller Cell: 302-381-0111 Mike Meshes Rick Steele Cell: 302-236-7905 Cell: 302-249-3054 Stated. No Income, No-Dec Loans No InCome or Asset Documentation Necessary Investment Properties 90% LTV Office:302-226-Sg91 ' A A F Fax: 302-226-5990 • _.1 Toll Free: 1- 877-40-BEACH MOR CORP. "We're Making the American Dream Easy" 4343 Coastal Highway Suite 202 Rehoboth Beach, DE