Protect Your Interests While Lending a Helping Hand

In some markets, residential property is doing quite poorly, and residential lenders are looking closely at each deal and making it harder to apply for loans.

Commercial lenders are limiting their investments in residential properties. Small investors like you are finding it hard to obtain financing for these types of deals. In a sense, what you are hearing is that you should be happy with the financing you have and that new lenders are not looking to give you more money. They may, however, be willing to extend additional credit to you as an equity loan on terms that are probably less favorable than your current first mortgage loan.

In any event, I don't know of a conventional lender that would allow you to borrow more than 70 or 75 percent of the equity in the property now. So if you're looking to cash out 90 percent of the equity, the numbers might not work out.

Where might you go to get money? If you're a real estate investor with multiple properties, you might have better luck with a bank willing to look at your portfolio of properties and refinance all of them.

Try some local savings and loans or community banks, and see if they are interested. Local banks are becoming more active in the real estate market as larger banks pull back. Any bank willing to give you a loan will probably have to keep the loan on its books.

As the real estate market improves, it may be easier to refinance your property.

I am the co-executor of an estate of a relative and was left the house in the will. We have been unable to sell the house. I've been paying the mortgage and costs for a couple of years. I recently decided to move into the house.

Will the mortgage companies (original and equity lenders) transfer the home into my name and qualify me for a new mortgage based on my credit? Is it possible to avoid closing costs? What is the best way to approach the mortgage companies? What is the best and easiest way to transfer ownership of the house to me? Is it possible to have more than one principal homestead tax exemption?

I already have a home. Can I deduct interest and taxes on the property that I previously paid?

You have quite a few questions, so let's start with the house you inherited and how to get that home into your name.

Your relative gave you her house under her will when she died. If you are probating the will, your state should have a process to allow you to transfer the ownership of the home from your relative's name to your name.

The lawyer assisting you in probate can help you with the forms necessary to transfer the title. If you don't have anybody helping you, some court clerks can -- but are not obligated to -- help guide you in the transfer of the property.