It's important county recorder gets proof of mortgage payoff

Q. Once a mortgage and/or a refinance is completely paid off, does one need to keep all the original paperwork?

A. I hesitate to tell you it's all right to throw out any documents. But if the discharge document for your paid-up loan (a satisfaction certificate or in some states, or a transfer deed) has been entered in the county's public records office, that's all that really matters. Unless you have reason to think someone might raise a question about that old mortgage in the future, you might as well celebrate with an old-fashioned mortgage-burning party.

About that vital discharge document: If you received a copy, stamped by the records office to show that it's on file there, you're just fine. If you received a copy and it hasn't been recorded, take it to the county clerk's office and enter it yourself. If you don't have a copy but it shows in the public records, nothing to worry about.

But if no discharge has been recorded, anyone who searched the records would see the loan still out against your property. In that case, don't throw anything away until you've straightened the matter out with your lender. It's important.

My husband and I are going to be investing in real estate via tax sales, but we are new to this business so I have some questions and confusion. First off after we buy a property from a tax auction we want to turn around and sell it for a profit, but do we have to fix it up first or can we sell it as is? Second, do we have to get an inspection before selling the property? Finally, if we were to buy a house on the other side of the United States, could we sell it with out having to travel all the way there?

A. You should be getting your answers from whatever party is trying to sell you an expensive tax-sales "seminar." My feeling is that you shouldn't be fooling around with the business at all. I have the impression you'd be heading for disaster. Tax sales are no place for amateurs. There's too much you don't know and I can't set you straight in this small space. Sorry.

I have the opportunity to purchase a new construction, bank-owned home at a substantial savings. The one problem I see is that it is located directly across the street from a very well-maintained cemetery. The thought of living across the street from a cemetery does not bother me in the least, especially since I can get a great deal on the home. My question is how do you think the location would affect the resale value?

A. Some people wouldn't want to live across from a cemetery, and anything that narrows the pool of potential buyers cuts down on the top price you might get when you sold. That's why you're being offered a "great deal at a substantial savings" in the first place. Whether you want to take advantage of it is really your personal decision.

What is required regularly during the marketing stage of an REO?

A. I wonder if that's a homework question from a broker's course. Sounds like it. Are you asking about the duties of the agent who is trying to sell a "Real Estate Owned" foreclosed property owned by a bank?

What are required regularly during the marketing of any property are periodic reports to the owner, even if nothing is happening. That should include feedback from potential buyers who saw the place. If nothing is happening, the seller should be hearing suggestions for enhancing the property's appeal, and recommendations for adjusting the asking price to a level that attracts buyers.

I am getting married and moving to another town. I currently own a home but my future husband has never owned a home. If he has the loan in just his name, can we still get the rebate?

A. He cannot get the $8,000 tax credit if at the time of the purchase he is married to anyone who owned a home in the preceding three years.

Anyone who plans to take advantage of this year's first-time buyer's tax credit, by the way, had better get moving. After finding the right house and negotiating a signed sales contract, it can often take two or three months to arrange financing and legal matters, before the actual transfer of ownership takes place. While there is some talk of an extended tax break, as it stands right now the sale must be finalized before Dec. 1.

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

2009, Creators Syndicate Inc.