Dear Edith: Our son and his wife have never owned a home. If we give them an interest-free loan to buy a home and the house is put in their names, will they qualify as first-time home buyers? Also, what type of paperwork would we need to prove they owe us money on the home? -- e-mail

Answer: If they buy the house as their main residence, it sounds as if they'd qualify for the $8,000 tax credit offered by the IRS. There are income limitations: The credit starts to phase out for a married couple with income of more than $150,000.

You'd want them to sign a mortgage document pledging the house as security for your loan. Get professional guidance on the whole process from a lawyer.

WHERE'S THE APPRAISAL

Dear Ms. Lank: On Monday we will be closing on a condo we have been renting. We are purchasing this unit in Florida for approximately one-third of the price that the owner paid for it. We would like to have a copy of the appraisal that was performed by the bank as part of the evaluation process, for documentation purposes in the event that we need to file a property tax appeal.

We are being told by the real estate agent that the bank does not disclose this information. Is this accurate and are we entitled to a copy? -- H. F.

Answer: You are entitled to receive a copy of any appraisal you paid for, so submit a written request to that effect.

INCLUDING THE CAR

Ms. Lank: Is it wise to mention a paid-up automobile when listing assets? Would that mean that if we ran into trouble with our mortgage, they could take our car? -- e-mail

Answer: Including the car when you list your assets for a mortgage lender won't pose any danger. You're not offering the car as security; you're just trying to convince the bank that you're a solid citizen and would be a good risk. When you sign the mortgage documents, you'll be pledging only the real estate as collateral for the loan.

FORECLOSURES ARE OCCUPIED

Dear Edith: I'm looking into buying a property for my growing family. I was told that the foreclosure homes are great buys. After researching and driving by the two properties I was interested in, I notice that both of the properties are still being occupied. The two properties are scheduled for auction soon. Is it possible for owners/tenants to still live in houses that are foreclosed or in the process of being foreclosed? -- B. F.

Answer: Yes, the unfortunate homeowners still own the property and they (or their tenants) have the right to occupy it. They don't have to let you in to inspect the interior either. Continued...