Question: I'm a real estate broker and often have several buyer brokerage clients at once. They each receive automated announcements as properties are entered into the MLS and when listings are updated. Is there any conflict here since I have more than one client receiving similar information? If so, what's your advice?

Answer: As a buyer broker it's appropriate to send information which meets the needs of your clients. Given that you're located in a particular community it would not be surprising to find more than one buyer with an interest in homes of a certain value or within a certain neighborhood.

The potential for conflict arises in the hugely-unlikely event that more than one client buyer has an interest in a particular property. If this happens you cannot be in the position of helping buyer clients bid against one another.

The solution to the problem is to have buyer brokerage agreements which allow you to withdraw without penalty from representing a client when situations become conflicted. For instance, if two clients want the same house the buyer brokerage agreements could give you the right to represent the buyer with whom you first had a buyer brokerage arrangement and to withdraw from any later agreements.

Could you lose a commission if the buyer you continue to represent does not get the property -- but the client you released is able to make the purchase? Yes. Such a loss -- though remote and implausible -- is simply the cost of being in business and treating client fairly.

You should, of course, explain your ethics policy at the time you first present a buyer brokerage agreement so that clients understand how you work.

Question: If I have filed for bankruptcy, can I still sell my home with a short sale?

I am behind on my payments by six months. I owe more on the home then it's worth and the market is declining in my area. Please help!

Answer: The so-called Bankruptcy Abuse Prevention and Consumer Protection Act was passed in 2005, legislation designed to protect well-funded mortgage lenders and credit card companies.

According to a study developed by the National Consumer Law Center, the National Association of Consumer Bankruptcy Attorneys, the Consumer Federation of America, the National Association of Consumer Advocates and the Center for Responsible Lending, "The practical effect of the current bankruptcy law is that borrowers stuck in unaffordable home loans must cure their defaults and, in addition, make monthly payments on the loans according to their terms or lose their homes. No other creditor in personal bankruptcy or business bankruptcy can leave a borrower in such a position."

At the time the bankruptcy bill was being debated, ING Direct, unlike many other big lenders, opposed the legislation and published an ad in the Washington Post which explained that "as originally envisioned more than a century ago, our bankruptcy laws were intended to allow hard working Americans to make a new start. Bankruptcy doesn't just happen to people who are careless or deliberately irresponsible. It also happens to people who work hard, save their money, and despite this simply have more bad luck than they can afford. If the Bankruptcy Reform Bill fails to protect them, it robs America's savers of the hope that makes them strive for financial independence."

ING Direct had it right.

What's unusual about your situation is that you haven't already been foreclosed. One of the provisions of the 2005 legislation is that you must get six months of counseling -- plenty of time in many jurisdictions for a lender to force the sale of the property before you can get to court.

In effect, the 2005 law requires you to become more destitute before you can have access to a bankruptcy judge.

If you have actually made it into a bankrupt court it's unlikely that you will be able to sell your home without permission of the judge. For this reason, do not list your property until you have spoken with an attorney or legal clinic in your community. If you do not have an attorney, contact the local bar association, community housing groups or local law schools for assistance. All may be able to suggest an attorney who help you on a pro bono basis.

Question: When is the sale of a home complete?

Answer: In the general case, a home sale is over and done when all existing liens have been paid off and a change of title has been recorded in local land records.

That said, there may be an exception in the case of a foreclosure. A number of jurisdictions say that after a home has been sold through foreclosure the owners may still get back their property by paying off old debts and charges, a process called equity redemption.

Question: I'm in a jam. I had a mortgage which was paid off by another lender four years ago when I obtained a line of credit. Now I'm in the process of closing the same house, but a title search says the old loan has not been canceled by the county clerk's office. To make the matter worse, the first lender closed two years ago with no forwarding address. What can I do?

Answer: No problem. Go to the file you have from the home equity settlement. Did you pay for title insurance? If yes, have the new lender contact the title insurance company and the closing agent who conducted the settlement. They will get this straight for you.

Question: I bought my home below its appraised value. How can I go about getting my yearly taxes reduced?

Answer: There's a difference between an "appraisal" and an "assessment." An "appraisal" is used by lenders to get an independent valuation of the property while an "assessment" is used by local governments to value properties for tax purposes.

The lower appraisal may give you grounds to ask for a new assessment, however it would not be surprising if the assessment was actually lower than the sale price. If your sale price is higher than the current assessment it might be wise to stick your appraisal in a file rather than create grounds for a higher tax bill.

Question: Many of the homes going into my neighborhood are condos. I live in a single-familly home. How will I know what my comps are?

Answer:This is not a problem for any appraiser or real estate broker. They will value your property on the basis of recent sales recorded for other single-family homes in your neighborhood.

A condo flat or townhouse is not the same as a single-family home with a lot, thus they do not readily provide a basis for comparison. The apples-to-apples comparison is single-family homes to single-family homes, not single-family homes compared to condos, co-ops or other types of real estate.

Question: Can you explain what a HELOC is? (an also how to say it?)

Answer: The term "HELOC" is an abbreviation meaning "home equity line of credit". It's pronounced "hell ock".

In basic terms a HELOC is typically a second mortgage secured by your home. Instead of getting all the money up front, with a HELOC you have the right to make withdrawals against a line of credit. As you repay the money the line of credit is restored and you can again borrow from the account. Be aware, however, that HELOCs are not a big piggy bank: If payments are not made the loan can be called and your property can be foreclosed.

Question: In what ways does inflation affect home prices?

Answer: Inflation means that the value of cash is being reduced over time, thus it takes more dollars to buy a loaf of bread -- or a house.

In practical terms, homeowners can beat inflation with a fixed-rate mortgage. While the interest rate is set, inflation over time means that each month you're paying with less-valuable dollars while the cash value of your home rises. If the cash value of your home rises faster than the rate of inflation, they you've gaining additional spending power and that's both one measure of real wealth and often a very good reason to be a long-term real estate owner.

Question: Are zero down mortgages still a bad idea -- even if I plan on selling before my rate becomes adjustable?

Answer: Zero-down mortgages are neither a bad idea nor a good one. The VA, as one example, has offered financing with zero down for decades to those with military service in a program that's widely admired.

What's a terribly-bad idea is the thought that you will be able to sell before the start period for your new loan is over.

Many borrowers during the past few years bought homes with little or nothing down using loans that featured small monthly payments for the first few years of the loan. The theory was that the homes could be sold before introductory payment periods ended and monthly payments rose. For too many people this theory turned out to be wrong when home prices stalled or fell. The result is that large number of borrowers now face foreclosure because they can neither sell the property nor pay the new and higher monthly costs they face.

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: July 18, 2008

Use of this article without permission is a violation of federal copyright laws.

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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.

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