LENDING TO SON

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.