Question: I was recently laid off my job and have missed my last three mortgage payments as a result. My home is on the market and listed with a broker, however in our local California market there's an over-abundance of inventory right now.

The lender told my broker a few days ago that they will begin foreclosure process next Monday, however we still have four months to sell the house before the entire foreclosure process is complete.

Can the lender come after me for any unpaid balance I owe on my property if it's foreclosed or if I sell at a discount?

Answer: If you have a "purchase money" mortgage in place -- the loan used to first acquire the property -- then in California your liability is limited to the sale value of the property. If you've refinanced then you may be responsible for any unpaid loan balance. Speak with a real estate attorney for specifics. Be aware that the rules in other states would usually allow you to remain responsible for any unpaid debt.

Question: Do all reverse mortgages, HECM's or private lenders, have interest rates that are variable as opposed to fixed?

Answer: Reverse mortgages are available with both fixed and variable rates.

To find fixed-rate reverse mortgages speak with lenders. However, do not sign up for a reverse mortgage until you have spoken with an outside authority, such as an attorney who specializes in elder law, who can review the specifics of the loan. Reverse mortgages are complex instruments, they impact equity seniors have acquired over decades and they should be carefully examined before acceptance.

Question: I have lived in my house for one year and two months. The value has increased $25,000. Should I refinance and get the cash out to pay my debts? I have an adjustable first mortgage at 6.5 percent and a fixed-rate second mortgage at 8.37 percent.

Answer: You need to ask more questions. For instance, what will it cost to refinance? Is that money better spent paying down other debts?

What is your credit standing? Have all mortgage payments been in full and on time?

If you refinance, how much cash can you actually get out of the property?

If you refinance, is there a prepayment penalty on your current first mortgage?

Would it make sense to just refinance the second loan?

Speak with lenders for details and options. Make sure your get a good faith estimate and a truth in lending statement so you can see all refinancing costs.

Question: We have been told by the city that to qualify for affordable housing we need the following:

A one bedroom apartment can rent for $788 at the 50 percent level and $951 at the 60 percent income level.

Currently the minimum income for a one-bedroom apartment is $22,384 at the 50 percent level and $26,882 at the 60 percent level.

Many of us who qualify for the 50 percent level are being billed at the 60 percent level. They reduced my rent for the current month when I called, but have done nothing for the overcharges since I moved in some 15 months ago.

What can I do?

Answer: Speak to the highest manager of the city housing office you can find and ask for a refund. If that's not possible, contact the consumer affairs department of the state attorney general's office for assistance. Many state attorney generals have such an office or something similar.

Question: When a home is sold and the seller is relocating to another state does he owe state taxes on the sale of his home?

Answer: The goal of state tax collectors is to, well, collect taxes. For the specifics in your state, consult with your settlement agent. In some jurisdictions you will find that a percentage of the sale value is collected on the spot if you're moving out of state -- you can then apply for a refund if one is due. Alternatively, if you are moving within the state there may be no additional tax at closing -- the state will catch up when you file your tax return.

As an example, in Maryland you pay 6.5 percent of the gross if moving out of state, but if you lived in DC or Virginia and moved to another jurisdiction there's no equivalent collection.

Question: Who do I contact to make a formal complaint regarding a real estate agent?

Answer: Generally the best approach works like this: First, speak with the agent and see if the matter can be resolved. Second, speak with the agent's broker or office manager. If still not satisfied, contact the state or provincial regulator and ask them to examine the issue. A list of regulators can be found at ARELLO.com.

Question: I live in Colorado and I have a home in California that my parents have been renting from me for the past five years. I want to sell the property, but my parents don't want me to because they like the home.

I have lots of equity in the house and want to sell so I can use the profit from that house to buy another or pay off my condo here in Colorado.

How can I go about this? I don't know if it's better to put the house on the market and try to sell it with them in it, or should I just give them a period of time to find another rental property?

I hate to have them move but the cost of keeping the home is getting to me and it has put a strain on our relationship. They think it's their home and not mine.

Answer: Maybe there are other choices here. Could your parents buy the property from you -- perhaps at a discounted price? Would it make any sense to refinance the home to pull out additional cash?

If selling is the only reasonable option, then give you parents as much time as possible to move elsewhere. They may see the value of the property in a new light.

Question: We are looking for a second mortgage. The house is completely paid off. Where do we go for this financing?

Answer: You are not looking for a second mortgage. Since the property is debt-free, you are looking for a new first mortgage or trust. (If there was financing on the property, then the new loan would be a second trust or mortgage. In the event of a foreclosure, the first loan must be completely repaid before any money can be given to the second lien holder.)

Question: I rented an apartment for the last 13 months. I deposited $575 and now the landlady is not returning this sum.

I have maintained the apartment very nicely, no damage. I have cleaned but she is saying that it will cost $575. I know it won't cost more than $100.

Please let me know how to handle the case.

Answer: The purpose of a deposit is to compensate a property owner for damage beyond normal wear and tear and the failure of the tenant to make proper payments.

Make a photographic record of the apartment and tell your landlord that you will take her to small claims court if your deposit is not returned. Explain that if you win you will also file a complaint with every local regulator you can locate -- she may want to reconsider.

Question: I need to know if there are laws against imposing restrictions on the ratios pertaining to how many renters can rent in a condo. I do know it will have to be amended by the owners. I was told that it is discriminatory to restrict and I question that since there is no protected class involved.

Answer: Rental restrictions in condos are common. However, once a condo regime is established -- that is, once the declaration and by-laws are in place -- it can be difficult to institute rental limitations because a change in the declaration or by-laws may not be supported by unit owners.

The problem that arises when more than 40 or 50 percent of all units are leased is that lenders then treat the entire property and all units as investment real estate -- including owner-occupied units. This can make financing and refinancing difficult, thus impacting sale values.

The condo board and attorney will have to determine how the declaration and by-laws will have to be amended to establish a rental ban or limitation. Unit owners will then have to approve. There are a number of approaches to such controls including an outright rental ban, a limitation on the length of a rental, a limitation on the percentage of units that can be rented, etc.

Question: I was owner financing the sale of my home back in 2004. The guy who I owner financed it to filed a quitclaim deed for my property and then he did not pay the note for the house.

Now, yes, I did sign the quitclaim deed, but he was also supposed to get the house refinanced into his name and never did. The county changed the taxes into his name then changed them back into my name because the appraisal district said that it was not a legal document. The mortgage note is still in my name and now I am selling it again, through the bank and the title company are saying that there is a cloud on the title because of this quitclaim deed. The guy refuses to sign the property back over to me. What can I do?

Oh, by the way, I did not mention that I was in bankruptcy at the time this deed was filed and, yes, the property was included into it. How can I undo this quitclaim deed?

Answer: If you were in bankruptcy at the time of the original transaction did you need court approval to sell the property? Did you get it?

Miller's first rule of quitclaim deeds is don't. Your experience explains why. Undoing a quitclaim deed gone wrong can be remarkably complex, time-consuming and costly.

As the seller you did not get title insurance, so that option is out. What might be possible is the purchase of a bond to offset any future title claims. Another approach may be to foreclose on your buyer as he did not pay the loan. You'll need a real estate attorney to untangle the situation and -- since you are in bankruptcy -- the approval of a judge to do anything may be required.

Have a real estate question? Send your inquiry to Ask Realty Times. Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here. For past columns, please press Ask Realty Times.

This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal services or other expert assistance is required, the services of a competent professional person should be sought.

Published: June 15, 2007

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Have a real estate question for Realty Times? Wondering about buying, selling, financing, refinancing or renting? Here's where you can send your question to Peter G. Miller, OurBroker®, a nationally-known columnist, author and reporter. Peter G. Miller has written six books -- including The Common-Sense Mortgage -- a guide with hundreds of thousands of copies in print. Miller was the original creator and host of America Online's Real Estate Center and joined Realty Times in 1998. Send your questions to . Because of the volume of mail received, individual questions cannot be answered privately and not all questions can be used. Published letters may be edited for space and style and all letters become the property of Realty Times upon receipt.