Q. Seller from March 2007 called complaining that she can't get a loan to build a barn because mortgage we took subject-to is still in her name. How do we handle this?

A. Well first of all the debt ratio is not the only reason she can't get a loan. She probably also has credit issues.

We have had this come up a few times. First, see if she can work with a mortgage person that is friendly to you. That way you can work with the mortgage person to get her loan through. You can do the same thing with her current loan person but it is sometimes more difficult.

When working with the loan person, ask what documentation is needed to show that the original seller is not responsible for the loan. They may want a purchase and sale agreement, copy of the deed, cancelled checks. Some may even want to fabricate a lease to show the original sellers are

leasing the property. Be careful with that one. If they just ask if the property is rented, you can say yes and get them a copy of the current lease that you have for the property. Many times that will work.