Expert: Dick Dennis - 10/28/2007

Question
QUESTION: I am thinking of relocating out of CA in late 2008 to early 2009. What are my options for the property I co-owned with my aunt? Foreclosure, buy-out, sell, etc...

I am a first time home-buyer. The property is located in San Marcos, CA, where my aunt lives. But I live in Orange County. We signed on the property on July 5, 2003. I also do not live in the property. My aunt rents it out to tenants.

If you are unable to advise, please refer me to someone who can. Thank you for your time.

ANSWER: I live about 44 miles from your property. Let me know what the unpaid loan balance is and the address. I may be able to find a buyer for you NOW. Otherwise when you are ready to sell, find yourself a good Realtor to get a buyer for you, or I might be able to help you in that end. I do wish you well.

Dick Dennis          dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Mr. Dennis,

Thank you for the reply. Forgive me for sounding stupid, but how do I determine the unpaid loan balance?

As I do not know how long the selling process takes, I like to start the process now. I expect there's going to be some costs involved, and some objections from my aunt. She is unwilling to sell at a loss, even though keeping the property is severely draining her finances. The property is located at 1472 Clearview Way.

I'm certainly open towards realtor references from you. I prefer someone who can school me on the basics and be thorough in every aspects of the game. Especially when they involved monetary costs.

Answer
Based on the information I have, the sale of your condo was made on November 10, 2003 and it closed escrow on December 31, 2003. I don't know what you may have signed on July 5. It doesn't make sense that you would sign some papers four months earlier unless the condo development was't quite finished and they had you wait that amount of time. Your aunt's name is Annie Yeo, right?

My guess is that your monthly payment is approximately $2430 per month NOT INCLUDING taxes and insurance which would make it more than $3,000 per month if it did.

Someone may have mislead you if you are paying somewhere around $3,000 because with the approximate $97,000 down payment you do not need to have your taxes and insurance included in your payments. You may pay the taxes and insurance separately. I certainly hope the rent you are getting for that condo is somewhere around $2,500 or more. Otherwise it is costing you each month to own that property.

If all this money talk is not a concern of yours, then please excuse me and I would recommend you keeping that property for at least another three years. You will be glad you did. Otherwise, you may find that you may NOT be able to sell the property for too much more than what you owe. The market has dropped drastically in the last year. I can find out for you how much is the ACTUAL market for your unit, including the fact that you have tenants.

To find out what you owe, look at your monthly statement you or your aunt receives each month. It tells you how much is owed after you make the payment each month. Another thing: I don't know how many units are in your condo development but if there are too many people renting there, you may find it very hard to sell the property. There are a few other things you should know, as well.

Let me know if there is something else with which I can help. I do wish you well. You may contact me at the following email address, if you wish.

Dick Dennis   dixiedee13@aol.com