Arizona Real Estate Notebook

Robert Bruss

Each mortgage lender is required to disclose all fees on the lender’s Good Faith Estimate (GFE), which must be supplied to you within three days after you submit a written loan application. This form, however, is not binding on the lender and there is no penalty or legal enforcement for a lender’s false GFE, but it’s a starting place.

When you spot a junk fee on the GFE, object to it up front. Unless the lender will waive or at least modify the junk fee, maybe you should do business elsewhere. However, if the lender failed to disclose a fee on the GFE that later shows up on the closing documents, as the borrower you are in a strong position to challenge that unexpected fee and negotiate it away.

NO WAY TO GET OUT OF MORTGAGE CO-SIGNING OBLIGATION

This situation is a classic example why individuals should avoid co-signing mortgages unless they also are a co-owner of the property. If your daughter was a co-owner, she could bring a partition lawsuit to force the property sale unless the ex-boyfriend refinances.

NO TAX BREAK ALTHOUGH HE PAYS HALF THE MORTGAGE

AN UNEXPECTED CASUALTY-LOSS TAX DEDUCTION

BIG DIFFERENCE BETWEEN LEASE-OPTION AND LEASE-PURCHASE

A lease-option gives the tenant the option or choice (but not the requirement) to buy the property at the agreed price and terms. The term of a lease-option is customarily one or two years.

But a lease-purchase agreement obligates the tenant to buy at the agreed price and terms, within the specified time limit, such as 12 months.

BE VERY CAREFUL WHEN TRIMMING NEIGHBOR’S TREE