Would A Lien On Property Prevent Reverse Mortgage?

Q: I'm wondering about getting a reverse mortgage on my home. If there's a lien on your property can you get one?

A: For those new to the term, a lien is a legal charge against a property making it security for the payment of a debt, judgment, taxes or most commonly a mortgage. And a reverse mortgage, marketed to seniors, allows homeowners to spend down the equity in their home.

Reverse-mortgage lenders throughout the industry would answer your question with "a qualified yes," says Sarah Fiske, western regional manager for the Reverse Mortgage Company, a national lender. "If there's an existing lien, they're still eligible for a reverse mortgage, but if we're the lender, we do need to be in first position on the property," which means her company is the first one repaid.

There are two ways to do this, she says. First is to take out a large enough reverse mortgage to pay off the lien up front. The mortgage company will run figures based on your home's value, your age and current mortgage rates, to determine how large a reverse you can get.

The second is to "get the lien holder to subordinate - in other words, put their lien in second position." Fiske says lien holders rarely agree to this.

The Reverse Mortgage Company, by the way, expects to begin offering Fannie Mae's reverse mortgage, called the Homekeeper, to Washington state homeowners in March. For more information: (800) 334-9057.

Q: Is there a book I can recommend to the board of my condo association to help them? We live in a 19-unit building, and most of the board members are new. We'd like to have some guidelines.

A: Books, pamphlets, magazines, online info - the Community Associations Institute has it all for you. Virginia-based CAI is a national nonprofit association serving the educational needs of those who live in condos, co-ops or neighborhoods that have homeowners associations. They'll send you a free catalog of their publications and products (which cost $1.50 and up), which includes such titles as "Homeowners Associations: A How-To Guide for Leadership and Effective Participation." To get it, call CAI's local office at (206) 528-2584 and leave your name, phone number and address. You can also check out the association's Website: http://www.caionline.com through your Internet provider or by calling (800) 248-1325.

The local CAI chapter runs frequent day-long courses. The next one, on March 16, will cover the basics of running a condo association; in April and May will come courses on condo financial management. Call the CAI office for the particulars.

Q: After I rented an apartment, signed the lease and paid the deposits myself (damage and the last month's rent), my boyfriend moved in.

Now the lease, which my boyfriend never signed, is about up and we're splitting up. I've given the landlord a month's notice I'll be moving, but my boyfriend is staying put.

The landlord has agreed to this, but says he won't give me my deposits back because the apartment is still occupied. I don't think it's fair. What can I do?

A: Barbara Osinski, an attorney and specialist in landlord-tenant law with Catholic Community Service's Legal Action Center, says you're right, your landlord isn't treating you fairly. "Technically she should be entitled to a refund of her damage deposit and last month's rent (presuming you haven't already used this deposit to pay your last month), then the landlord should sign a new lease with the boyfriend and obtain deposits from him," Osinski says. "This cuts off her liability (for damage) and ensures the landlord does have someone he can hold responsible in the future." Osinksi suggests you write the landlord a letter stating that you've properly terminated your lease, that you're no longer liable, that the landlord has established a new tenancy with the boyfriend and that you're entitled to your deposits back. Should this not bring satisfaction, Osinski says you'd have a strong case for small-claims court.

Home Forum answers readers' questions every Sunday in the Home/Real Estate section. Send your questions to Home Forum, Seattle Times, P.O. Box 70, Seattle, WA 98111, or call 464-8510 to leave questions on Home Forum's recorded line. The e-mail address is: erho-new@seatimes.com. Sorry, no personal replies.