Ilyce Glink

Q: We are in a dispute with our homeowner's association over the placement of our fence. If we do go to mediation, would you recommend taking an attorney with us? We are trying to avoid high attorney fees, hence our interest in mediation. What would you recommend?

A: The point of mediation frequently is to avoid using attorneys and reduce costs. Even if you want an attorney present, some mediation rules may prevent you from having one with you to present your case.

You need to find out what the rules for the mediation are and whether you're restricted in using an attorney. If you you're not allowed to have an attorney represent you, you might still want to talk to one to determine how you should proceed.

Make an appointment with the attorney, bring your documents and listen to what he or she has to say about your situation. You should be able to use your time with the attorney to develop a strategy for the mediation and understand your rights and options.

If you don't know a good real estate attorney, contact your local bar association and ask for the head of the real estate committee. The person who chairs that committee will be a good real estate attorney and, more importantly, should be able to guide you to the best person for the situation.

If you decide not to use a real estate attorney, you should learn as much as you can about your issue. Determine where exactly the fence is located and read the documents that govern your homeowner's association to determine what rules those rules. Once you've done your homework, you should be in a better place going into the mediation.

Q: My wife and I purchased a home on February 27, 2009 after living in another home for over nine years. Are we entitled to the $6,500 long-term homeowner program? Thanks for your time.

A: I'm sorry, but you do not qualify. The move-up tax credit is only available to those who purchased their homes after November 6, 2009 through June 30, 2010. Because you bought your home a year ago, you would not fall into the appropriate date range.

Unfortunately, the move-up home buyer tax credit contains strict time limits as well as other restrictions. For those who don't fall within these strict parameters, you're out of luck. That's because the move-up home buyer tax credit was intended to stimulate demand for homes and Congress didn't want to give the tax break to people who had already purchased homes. Whether the tax break actually increases the number of move-up buyers hasn't yet been determined. Some of those buyers would have purchased a home anyway, while others may only be buying to take advantage of the tax break.

Although the IRS tax code doesn't require that you sell your existing home in order to qualify for the $6,500 long-term homeowner tax credit, many homeowners who wish to trade up might need to get cash from the sale of the property.

Home buyers wondering whether they qualify for a tax credit might want to spend some time on HomeBuyerTaxCredit.com. It provides an interactive short series of questions to help figure out if you qualify for either the $8,000 first-time home buyer tax or the $6,500 long-term homeowner tax credit.

Q: I am a disabled veteran and would like to get a VA loan with my wife on the mortgage.

Two banks said I can't put my wife on the loan because she had a foreclosure three years ago due to a divorce. Her ex-spouse claimed bankruptcy, but she didn't.

The VA said they don't have a problem securing a loan with her on it as long as my credit is good and I am the veteran. She has had some bad credit in the past but is current on all her bills for the last year.

Are there banks out there that are willing to give us a VA loan? If the VA is willing to secure the loan, isn't the loan then a low risk to the bank? Please help.

A: Unfortunately, even though the Veteran's Administration can secure loans, it doesn't originate them. You have to get a mortgage lender to agree because there are risks for that lender. Currently, most mortgage lenders are looking to reduce their risk and make sure they follow stricter guidelines for their loans.

The real issue for you is whether you need your wife on the loan to get approved. If you can get the loan with your disability pay and other income, you might want to go down that road. Your wife might still be able to own the home with you, but the sole borrower on the loan would be you. If that works for you, then find a lender and move things forward.

It's a bit more complicated for you if you need your wife's income to qualify for a loan. While you indicated that your wife's ex-spouse filed for bankruptcy protection and their former home went into foreclosure, the foreclosure is probably an issue for any current lender.

If your wife and her ex-husband owned the foreclosed home together and took out a loan together, that old lender now shows the foreclosure on your wife's credit history.

If the divorce decree granted ownership of the former home to the ex-husband and made him solely liable for the debts on the home, you might be able to get somewhere with your current lender. But you also referenced that your wife has poor credit and has only started to pay her bills on time for the last year. Her poor credit could cause her loan application to be rejected

But there may be lenders who can help. You should go back to the VA and tell them you're having this problem and ask them to recommend a lender who might be able to work with you. You might also want to talk to local banks that keep a portion of their loans in their own investment portfolio. They might have looser lending rules than other banks. Few likely do, but you may find one in your area.

If you do buy the home, you will need to determine how you and your wife will own the home. If the lender does not allow your wife to apply for the loan but allows you and your wife to hold the title to the home, you'll need to remember that any late payments on the mortgage will affect your credit history and score and not your wife's. You'll also need to remember that she is not personally obligated under the mortgage.

But if the lender won't allow her to be on title, then make sure to have a will that spells out your wishes should something happen to you. You may also benefit from talking to an estate planner to work through issues relating to the home and other assets you own jointly or separately.

Good luck.