On homes and real estate: Accountant recommended to help new landowner

Q. I recently inherited some land from my mother. Parts are zoned residential and never improved, but one tract is commercial. It had a building that was torn down years ago. Will any of the property taxes be deductible on my income taxes?

A. All property taxes that you pay on any land you own are deductible on your federal return, assuming you itemize. You might as well check this out with a CPA, since I suspect you'll want your own accountant now that you're a landowner.

Q. My niece and her husband bought a house. Two years later, they rented it out and moved away. My niece says the mortgage company raised the payment by $75. She couldn't tell me more because her mother-in-law took care of everything. I thought a mortgage is set once it is locked in. What could have happened?

A. Your niece may have an adjustable-rate loan that includes a new interest rate a bit higher than her old one.

On the other hand, if she has a fixed-rate mortgage, monthly payments for principal and interest do stay the same every month. But the lender might also collect extra money, which is held in an escrow or reserve account. That's used to pay her property tax and homeowner's insurance bills. If her taxes went up $900 a year, the lender would collect an extra $75 monthly, so there would be enough in the account to pay the next bill.

Or it's just possible that she has a special homebuyer's mortgage, perhaps offered by her state, with some advantage that doesn't apply if the house is no longer her residence.

Q. I was intrigued by the article in your column about a reverse mortgage for a 72-year-old woman. It does seem to address her present financial needs, but how would future needs be met once she moves into a nursing home, for example? Also, is this different with an assisted-living facility? Do you have any recommendations on the best person to contact for that type of information?

A. A reverse mortgage is an excellent solution for an older homeowner who wants to remain in the house but needs more income. It allows for borrowing against the equity in the home with no repayment due as long as the owner lives there. For health care information, consult a lawyer who specializes in elder law.

Q. I have been a mortgage customer of my bank for 10 years, refinancing once since then without ever missing a payment. In October 2010, before the bank ruined my credit score, it was 823. I have ample income and assets to make monthly payments.

Last October, I applied for refinancing to a lower interest rate at my bank. I promptly completed all paperwork. Out of concern for identity theft, I maintain a security freeze on my credit report at all three credit bureaus. I had the freezes lifted, and the bank was able to obtain the information. I was promptly approved for the loan.

Then the trouble began. There was one complication to be cleared up, but frequent turnover in the people that were handling my loan. Some made false statements to me about the progress of the loan. As things began to drag, some of the representatives ceased to answer my inquiries. The process was finally shifted to a helpful and communicative person. She cleared up the complication and indicated a likely closing date of March 10.

As it had been so long, they had to pull new credit reports. I lifted the freeze at all three credit bureaus again, but one of them went wrong. The bank tried repeatedly to pull the report at that bureau to no avail. The bureau indicated a department that the processor could contact, but she said it was done automatically and she couldn't reach it. She finally realized repeated inquiries were harming my credit score, so she submitted the loan package to their underwriting department.

A few days later, I received a communication with “Incomplete Credit Report” listed as the reason for denial. There was no information about a person or department to whom I could communicate or appeal the decision. I still want that mortgage at that interest rate. I hope you will have suggestions on how to pursue an “appeal” or some other recourse I might have.

A. A librarian can help you find contact information for the president of the bank, the president of the credit bureau and the agency that regulates mortgages in the state. Then it's time to send out complaints.

Ÿ 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 email her at www.askedith.com.

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