Don't delay accepting offer on foreclosure

Q. Two months ago I found a property I wanted and signed an offer to buy it for what they were asking. The property had been foreclosed and the agent said it would probably take about three weeks for the bank to OK the sale. I wrote out an earnest money check that the agent's office has. I had an OK for the mortgage from my own bank so I was ready to buy.

After a month I called the agent and he said the deal should be ready in about a week. Two weeks later I called again, still nothing. Another two weeks have gone by now and he still hasn't heard.

I now want out of this deal. Do I have a right to get out being I haven't heard anything in over two months?

A. If you don't have a written acceptance of your offer, you can probably withdraw it and get your deposit back.

Foreclosures, short sales and deeds in lieu leave many lending institutions owning lots of real estate these days. It's a shame so many aren't set up to deal efficiently with buyers. Delays, committees, documents passed back and forth and just sitting on desks, people going on vacations, all end up making today's real estate mess even worse.

I expect some buyers have success in purchasing these properties, but they're not the ones who write to me.

Q. We are talking about having our bathroom remodeled. We have only the one bathroom. I would like to have the tub converted to a shower since I have a hard time getting in the tub to take a shower. My husband said it is fine with him but if we ever have to sell the house, a tub would sell better than just a shower. What has been your experience?

A. I'm afraid your husband is right. A house without a tub would be difficult to market. From a resale point of view, it'd be a definite mistake.

Is there no way you can add a small low-threshold shower stall to your remodeling plan? Could part of a nearby closet be sacrificed? If not, I've seen ads for a swiveling chair arrangement that eases bathtub entry. And for a door-entry tub that can also serve as a shower - though that might not be enough for some future buyer who wanted a full stretchout tub.

Q. Can my landlord put me out of my house for making a bedroom in the basement if I pay for it?

A. You should be able to make any legal use of the area you're renting. A structural change, though, would certainly require your landlord's permission.

Your town or city probably has its own rules about a basement bedroom. In most places it must have a window big enough for exit during a fire. In other areas, it must be big enough to admit a firefighter in full equipment. There may be other standards. You can find out by calling your local government's building bureau.

Your landlord could be in trouble if you made any illegal use of the property. If you did, that's usually enough to void a lease.

Q. I've tried every form for this question and it eludes me every place I've tried. I'd like to know the period of time that I have to purchase a home, after the sale of my home, to get credit from the IRS on the new purchase. I'm getting a little rum dumb from pursuing this. I hope I've formed the question correctly.

A. You're not getting anywhere because you're asking about an old IRS tax break that no longer exists. There still is a rollover tax treatment for investment property. But with the sale of your own home, it no longer matters whether you buy a replacement residence or not.

The current generous home sellers' tax break allows you to take up to $250,000 profit (twice that for a married couple) with no federal capital gains tax due at all. There is no age limit now, and it's no longer once-in-a-lifetime. To qualify, you must simply have owned and occupied the place as your main residence for at least two of the five years before you sell.

Sorry, constant readers: I know this gets repeated a lot, but what can I do? Questions about the home sellers' tax exclusion come in every single day, and I try to hold them down to no more than once a month in the paper. Just as I try limiting "for Pete's sake, go see a lawyer!" to no more than once a week.

• Edith Lank will personally respond to any questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.

2008, Creators Syndicate Inc.