Appraiser can value hoarder’s home

Q: My mother is a hoarder. She owns her split-level ranch-style home, which is in my deceased father's name and hers. Mother is 98 years old and has dementia, which is in the more-than-moderate stage. She lives by herself with her dog.

We are applying for Medicaid for her so that she can go into a nursing home when the time comes. Medicaid is asking for an appraisal of her home.

The home is a total mess; every room is full! How can we get a true value on the home? Could it be appraised from the outside only? Would the appraiser even enter the home? — D.K.Q.

A: Not to worry. An appraiser will know how to look at the bare bones of the property, and how to make adjustments, if any are appropriate, for condition. Just go ahead with your planning, and leave the problem to a professional.

Off the Deed Isn't Enough

Q: I have a question concerning my husband and me. I left my husband two years ago after 28 years of marriage. I left the house because it is falling apart and I didn't want to stay there and moved in with my mother. My husband is still living in the home.

About three years ago, we filed for bankruptcy, but the court would not take the mortgage off. Now that I am on my own, I can't get good credit because my husband (we are not divorced yet) is just paying the interest on the mortgage, not the principal.

I want to get my name off the deed so that I can move on with my life. Do you know what would be the quickest, and least expensive way for me to get him to take my name off the deed? Would appreciate any help or advice you can give me. — askedith.com

A: If you both own the house, all it takes to remove you as co-owner is for the two of you to sign a new deed naming just your husband as owner.

That's simple, but it won't solve your problem. It won't take the bankruptcy off your credit record, and it won't relieve you of responsibility for the mortgage. You once accepted liability for that debt, and, in fact, you are personally responsible for the whole loan, by the way. Unless the lender releases you from that mortgage, you're still bound.

You need your own lawyer.

Renting Rule of Thumb

Q: Would you please tell me what the rule of thumb is on renting? There are three adults and one child. It is a three-bedroom and two-bath home. The child will have its own bedroom. One roommate will have to share the bath with the child. (Roommate is no relation to child).

I think the rent should be split into fourths and the mother of the child says thirds. The mother can afford to pay for her and her child. — C.

A: I'm afraid there's no rule, except that are sometimes legal limits on how many unrelated persons can share a residence.

But anyhow — seems as if the fairest way would be — let's see. That child's bedroom, one of three, is probably worth one-third of the rent. But then, the child has only one-quarter use of those two bathrooms. The mother won't share that bathroom, but is she in the other single bedroom or does she share the double?

I'm just not getting anywhere with this. Maybe readers will have some ideas.

Rehab and Rental Pitfalls

Q: I am thinking of buying a house to rehab, and then rent out. What are worst pitfalls to avoid? — F.P., askedith.com

A: The main pitfall in rehab is probably paying too much for the property because you underestimated the time and expense of renovation or overestimated the rental income you could eventually expect.

The main pitfall in landlording is poor tenant selection.

You need a lot more advice and information than I can give you in a couple of paragraphs, though.

First off, you should set yourself up with a real estate attorney and a certified public accountant before you start. Then, in the old days I would send you to the library, where you'd ask a librarian for some basic books on rehab and landlording. Today, if you're good with the Internet, you may be able to find the same material for yourself. Either way, expect to spend hours studying before you do anything.

You might want to invite an experienced investor to participate in this first venture you've located. Sometimes a real estate broker can suggest a name. Find the right mentor and you'd learn a lot. It's a good way to start.

Edith Lank will respond personally to any question sent to www.askedith.com, to edithlank@aol.com, or to 240 Hemingway Drive, Rochester NY 14620.