>> i'm bob massi. for 32 years, i've been practicing law and living in las vegas. i help people with all sorts of real-estate problems, from trying to save their homes to closing major deals. eight years ago, 6,000 people a month moved here, looking for employment and affordable homes. little did anyone know that we would become ground zero for the american real-estate crisis. now, it's a different story. the american dream is back. we're gonna meet real people who faced the same problems as millions across america, and we'll dive deep into a city on the rebound because las vegas now vegas is back. america, and [ woman vocaling ]

if you buy a home today in america, there's a one-in-five chance that you will end up living under rules imposed by what we call a board of directors, usually elected by you, the local resident. this board has very broad powers, and based on certain guidelines, well, they dictate just about everything in the community -- from the color scheme, how many cars can be in the driveway, how high your grass can be. and a lot of states? guess what, guys? they have the power to take your home if you don't make your monthly dues payments and assessments. very, very important to understand this. in some cases, people really enjoy homeowners associations. why? because they protect them. in other cases, i must tell you, they are a nightmare. >> they can be totalitarian regimes, but most totalitarian regimes, while they have their downsides, they also can be clean and orderly. >> this is karen and james. they bought a home in an hoa-managed neighborhood and one day found themselves in the middle of a major battle. >> we came back from vacation, and we found this rumble strip had been installed in front of

our home. and first night back, made a tremendous amount of noise, and we realized, "this is not gonna work for us." >> their once-quiet house was now filled with this noise... [ rumbling ] ...every time a car drove by. >> you're just constantly interrupted. as soon as somebody goes over these rumble strips, you wake up. and then it takes you an hour or two to get back to sleep. it's just not fair to the homeowners. and what's so infuriating is that these hoa board members, they don't have these in front of their homes. >> we just couldn't take the noise anymore. we had the president come over to our house, president of the hoa, and we asked him, "look. beuse these rumble strips." >> he actually started yelling at me in my home, telling me, "who am i to demand them to remove the rumble strips?" and i said -- i had to remind him -- "we're the homeowners. that's who we are. and you're supposed to be our advocate. you're the homeowners association." >> they set up cameras looking out of their bedroom window to document the constant noise... and the fact that the strips do not seem to slow the traffic

down at all. they soon learn that they were pretty much powerless to take on the hoa. >> once you're outside of that gate, that is technically city of las vegas oversight. but once you are in these gates, the hoa owns these roads. they have oversight. they can determine the speed limits. they can determine what they're gonna put here. but it's just so difficult in that they don't have any skills or experience or education in transportation, road construction, engineering, and then this is what can happen. >> and they have the legal right to do it. and everything that they can do is in the cc&rs, which you are given. so, yes, it is legal, but it's not right. >> cc&rs are the covenants, conditions, restrictions, reservations -- the laws that you must sign if you want to buy a home in an hoa community. and they are legally enforceable with monetary fines and even talk about the right of hoas to foreclose on your property. in a different hoa, when this resident used foul language, well, he was fined $100, with another $100 being assessed every week.

there is no first amendment freedom of speech in homeowners associations. >> i find it amazing that three people on a board of directors have more power and protection than city, county, and state agencies combined. and it's all legal. >> for karen and james, the hoa battle -- well, it took its toll. >> we finally came to the conclusion we're not gonna sink our savings. we're not gonna lose any more sleep over this. we're gonna try to sell, and we're gonna try to get out. and that's exactly what we did. >> so, they packed up, and they moved. >> i'm not willing to spend our money and any more time living in a community where we cannot sleep. >> i just think that homeowners should have the right to challenge their hoa before and after decisions. >> and it's not just the rules that get people into trouble. hoas are notoriously aggressive for going after people who fall behind on their dues. in fact, nevada is one of about 20 states that have laws that allow hoa liens to get priority over first mortgages. >> it could be a few thousand dollars, and if the hoa isn't getting paid, it can go ahead and foreclose and wipe out the

first deedf trust that the bank may have. >> that means they can foreclose on your million-dollar home to collect just a few thousand dollars of unpaid dues. >> yesterday, i actually was talking to an individual in the real-estate industry who apparently bought lots and lots and lots of homes, like hundreds of homes, at homeowners' auctions, and they got them for extremely low prices. >> pennies on the dollar. >> unbelievable. >> yep. million-dollar homes bought for several thousand dollars. in 2007, this house was purchased with a mortgage of $800,000 when the homeowner fell behind on the mortgage and the hoa dues. it was the hoa. guess what they did? they quickly foreclosed and sold the house to an investor for a total of -- believe this? -- $6,000. bank of america held the mortgage, appealed to the supreme court. bye-bye. they lost. >> the nevada supreme court said, "no. super priority means super priority. homeowner doesn't pay their dues, hoa goes in and forecloses, and the house sells for 2,000 bucks to satisfy the

hoa dues, and it just wipes out a half-a-million-dollar mortgage, and that's the way it is. >> up next, are you in the market for a property with the bulletproof windows and a hidden gun compartment? we'll tell you who lived here when we come right back. [ woman vocalizing ] [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. still clean their dentures manywith toothpaste. but they have to use special care in keeping the denture clean. dentures are very different to real teeth. they're about 10 times softer and may have surface pores where bacteria can multiply.

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same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. >> welcome back. i'm bob massi, the property man. well, las vegas has a legendary history, and every once in a while, a house goes on the market that lets us step back in time and see that history up close. here we are, las vegas country club, in the '70s, one of the most exclusive areas in las vegas. and i'm standing in front of "lefty" rosenthal's home. when you mention lefty's name, put it right next to tony spilotro, the infamous tony spilotro, the mobsters in the '70s. and if you saw the movie "casino," you know what i'm talking about. >> i was so good that whenever i bet, i could change the odds for

every bookmaker in the country. i'm serious. i had it down so cold that i was given paradise on earth. >> in the 1970s, frank rosenthal secretly ran various las vegas casinos for the chicago mob, including the stardust, the fremont hotel, and the hacienda. robert deniro's character was based on him, and sharon stone's based on his wife, geri. joe pesci's character was their partner, reputed mob boss anthony "tony the ant" spilotro. for much of the '70s, las vegas and its casinos was secretly run out of this very home. let's take a walk inside and meet the broker who's gonna sell this home. so, brian, we're at the infamous lefty rosenthal's home. it was built, what, in 1974? >> yes, roughly 1974. >> and he passed away, what, seven, eight years ago, i believe? >> 2008, believe. these are the original doors to the house. they're bulletproof. as you know, he was being chased by the mob and the fbi and everybody else.

>> just about everybody. >> just about everyone, so the doors are bulletproof. the entry doors to the courtyard and these front doors, they've remained unchanged since the house was built. >> okay, let's go in. this is the window, by the way, that faces the las vegas country club, which is one of the oldest golf courses in las vegas. tell us about the window. >> right. the window is also bulletproof. the original window -- lefty was coming down the stairs one day. the mob tried to shoot him from across the golf course. and the original bullet mark is in the glass. it remains there today. >> it's amazing the way these guys lived, you know? >> yeah. >> going into what appears to be the living-room area. >> the smoke-mirrored ceilings and walls are original. the piece of art behind the television there on the wall, that's an original piece commissioned by steven chase out of palm springs for lefty rosenthal. the sunken bar is original. the closets in the house -- all the closets are original. an this one over here has a hidden gun compartment, where lefty kept his guns. >> yeah, let's go take a look at that. there's like a little door that

actually opens, and the gun or guns were put in that area. >> that's correct. >> the lifestyle that these guys had, and if these walls could talk, it would be amazing the business that went on in this particular place. >> absolutely. >> in fact, with so many investigations hounding lefty, this house became his criminal-defense headquarters, and his attorney, oscar goodman? guess what? he became mayor of las vegas, and now his wife, carolyn, is the current mayor. >> his lifestyle was different than any other person i had ever represented. he must have stayed up the better part of the night, holding court in the various restaurants, but he uld stay in bed all day. and his wife would basically it on him, and we would hold our meetings about his various cases, and i had, oh, i'd say maybe five or six cases going at any one time just involving him. and he would be there in his pajamas and then in his robe, and i would be taking my notes and going over things that lawyers go over with clients. it was the most modern,

scientific home in the history of the world. >> really? >> for the time, you couldn't get -- it was like a fortress, bulletproof windows, doors that locked automatically, alarms wherever you looked at, buzzers here. it was different than anything i've ever seen. >> brian, what's so interesting is, so much is authentic. so, it's not just that they're buying something from 1974. it's the history. like, for example, this you said is an original piece. >> that's right. that's right. this is an original that was put in when lefty lived here. there's original features throughout the house, and that's what makes it what it is. it's got that '70's vibe, that classic vegas feel to it. >> absolutely. let's go into the kitchen area. >> this is another original piece commissioned for lefty. it's been here since day one on the wall. the ceiling above has gold-leaf accent under the wood. that's all original. >> it's a part of history of las vegas that it'll never be like it was, and that's why whoever is interested in buying this, they're buying a very big

part of the history of las vegas. brian, let's take a look at the master bedroom here. >> okay. this is the master suite. all the closets and mirrors in the room are original. it has a great view looking out over the golf course. that's the 15th tee box out there. you might remember from the movie, there was a famous scene wherthe fbi they were trying to spy on lefty, d they ran out of fuel and nded on the golf course. they actually ended up in that pond out there. that's where the plane ended up. this bathroom over here is the original bathroom. everything you see in there, even the wallpaper, is original. >> it's interesting to see how bright the lights are. him being in the casino business -- >> and geri being a showgirl. >> and geri being a showgirl, this is like hollywood -- hollywood lights. >> that's right. >> how do you pitch it to a prospective buyer with the

history? 'cause some people don't like the idea it's a mob house. let's face it. >> sure. the history is the biggest part of this home, and it's a beautiful home. >> mm-hmm. >> but the history behind it is what makes it so unique. so, the story of lefty rosenthal and tony spilotro and everything that went on here, that's the angle that we use to market this home. >> up next, a look inside of one of the most beautiful properties you can imagine. >> this is a special home. the style would be classified as a desert contemporary. it gets you from the get-go. >> it does. when we come right back. [ woman vocalizing ] dearthere's no other way to say this.

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>> welcome back. i'm bob massi, the property man.

it doesn't matter if you're buying a $100,000 or a $20 million one. there are certain key things that you must know before making such a massive commitment. in just a few minutes, i'm gonna review those things with you. but first, we had a chance to check out one of the hottest properties for sale now, and it is truly amazing. take a look. ivan, i mean, this is your specialty, these magnificent homes, and we're just walking like an entrance to, like, "ben-hur." >> you know, this is a special home. the style would be classified as a desert contemporary. it gets you from the get-go. >> it does. >> i mean, you walk in, and you're captured by the views. and one of the this that separates this home from so manyther homes is that they surrounded themselves with all this land and all of this privacy. what they did with this home is that they created a home that not only shows well for entertaining but that you can

live in, that you can have a family live in. so, this home right here, it's amazing to think of having families and normal-to-day activities, but this is where that would happen. you've got your family room. you've got your kitchen with a double island, all the newest appliances. >> and the view, 'cause now, as we're walking, and, of course, we're facing east. so, we actually could see downtown las vegas with this magnificent pool and fireplaces. it's just remarkable, the detail of this home. >> and it's not just "and the view." the view is the home. >> it is, isn't it? >> in las vegas, the strip is our ocean, and this is what we have. we're on the golf course. we're elevated above it. you're on just under two acres. it sets itself apart from just about everybody else because of what it has to offer in terms of view and amenities. >> and behind i see we have fire in different parts of the home, and i know there's a waterfall here. and now we're looking back in, and you see even more so the

detail of this entire beautiful room. how many square feet is this home? >> well, 16,000, and 21,000 under roof. for this particular home, i like to talk about the "wow" factor. i mean, you walk in, and it just, as i mentioned, it just gets you. >> it does. let's go look at some other areas. >> you got it. >> we're walking into the master bedroom, and, again, the views are so consistent, facing downtown las vegas, the east side of the town. >> to have a master bedroom that looks out and is kind of contoured by the ceiling detail and the roof that juts out and captures the strip and the golf course. this is the spot. >> sitting on two acres, the property doesn't just come with amazing views but also unparalleled privacy and security. for a home this size, what is the price on it right now? >> the price on this home is $17.5 million. >> and i will tell you, after walking through the home with

you, i'm surprised. i thought the price point was gonna be $25 million or $30 million. however, as you said, this is an advantage of living in las vegas. you take this home and put it in the hamptons, put it on the beach in los angeles, santa monica, whole different market. >> yeah, this home in a different market, outside of las vegas, you'd be at least double the price. this is the attraction. so many people, they have a misconception of what las vegas actually has to offer. we have things like -- we have a hair salon, a beauty salon. we have a spa that has a hot-and-cold plunging pool, and it has a steam room and an outdoor basketball court. we have a media room that's second to none. when the current owner purchased the home, he put in millions of dollars in upgrades. he added almost a half an acre and beyond to the size of the lot, to the landscaping, to the livability and the entertaining portion of it. he actually converted an extra 1,500 square feet. so, he added on 1,500 square feet to the house. so, the home that you see today is not the home that it was even

a few years back. >> how do you go about in your specialty to find a buyer for this home? >> finding a buyer for a home like this is not something that you do every day. this is a part of the market which is unique, and the buyer needs to be unique. what we do is we spend a lot of our time and a lot of our money in our marketing. but the biggest thing that we do is we create a campaign. wereate a whole plan specic to the hom including a specific website. and a t of our buyers in this price range are gonna come from out of state. >> is this the type of home you think a celebrity would buy, an athlete would buy, obviously somebody very successful that has the money to buy, 'cause you said it's $17.5 million. or is it one of those things you never know who's gonna walk through the door that's gonna say, "i want that home"? >> that's the answer, because it is a specialty home. people that can afford a home like this have multiple homes. and depending upon if this is their primary or secondary or beyond, it could be anybody. >> i guess probably the most important question is, we know

who needs the barbershop and who doesn't. >> [ laughs ] not me. >> exactly! very good. thanks, buddy. i appreciate it. >> thanks, bob. thanks so much. >> for most of us, a home like this is way out of our league. but there are still things you can learn from this property and how it's being sold. we'll tell you what they are when we come back, in the massi memo. [ woman vocalizing ] quit smoking. but when we brought our daughter home, that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how. why do some cash back cards make bonus cash back so complicated? they limit where you can earn bonus cash back to a few places and those places keep changing every few months. the quicksilver card from capital one doesn't do any of that. with quicksilver you earn unlimited 1.5% cash back on

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>> welcome back.

i'm bob massi, the property man. and it's time now for the massi memo. we swed you rmer gangster lefty senthas house. if you're buying an historic home or even just an old home, well, you need to look out for certain things. in some cases, you can get tax credits if you're restoring the property. and, of course, historic homes, well, by their very nature, they're old, and, therefore, they need repairs. so, do this for me. look for a qualified contractor and get multiple bids. make sure they've worked on aged or historic homes. get a detailed home inspection with a licensed and bonded inspector. these historic and old homes many times, they have safety issues such as lead paint, termite issues, asbestos, structural issues from mere wear and tear. ask for utility bills, guys, to get a history of the cost. it could be expensive. and usually these old homes, well, they're not insulated at all. also, i showed you that stunning

$17 million mansion. go figure. buying and selling multimillion-dollar homes requires specific knowledge of the market. most sellers expect their broker to bring a qualified prospective buyer to the table before they just open their home to strangers. specialized qualified brokers like ivan, they understand the marketplace, and that's so important. prospective buyers, be prepared to answer questions about your financial situation related to the nature of your business -- who you are, what you do. many times, buyers can ask for luxury homes to include the furnishings, specialty items that make the home unique. and also, always remember, guys, you can negotiate closing costs. for you the seller -- well, you must make sure that your asking price is real. qualified buyers who have competent brokers know the marketplace. they've done their homework. that's ifor today. be sure to send me your questis or property stories at propertyman@foxnews.com. and check out our website at

foxnews.com/propertyman. i'm bob massi. i'll see you next week. [ woman vocalizing ] ♪ >> i'm bob massi. for 34 years, i've been practicing law and living in las vegas, the center of the recent real-estate crisis. lives were destroyed from coast to coast as the economy tanked. now, well, it's a different story. the american dream is back. and nowhere is that more clear than the sunshine state of florida. so we headed from the strip to the beach to show you how to live the american dream. i'm gonna meet real people who are facing serious problems, take you behind the gates of properties you have to see to believe and give you the tips that everyone needs to navigate the new landscape because information is power, and the property man has got you covered. [ woman vocalizing ]

thanks for joining us. nearly 700,000 new homes were built in america last year, and over the past five years, more than three million. [ saw whirring ] new construction enables you to build the exact home you want, but it can be a daunting process if you've never done it before. so we're gonna tell you how to do it right. there is a new home-building checklist on our website at foxnews.com/propertyman, and i'll have more critical information later on the massi memo, but first... deanna, nice to meet you. >> hi. nice to meet you. >> i wanted to check in with deanna armel. she's a realtor who specializes in new-home consuction in the orlando area. ♪ what are some of the first things and tips that you give a prospective homeowner, particularly somebody that's never done it before? >> the first thing i would say is, "what do we need to do to set you up for success? do we need to sell your home first? do you need a lender? what can you afford? what area are you looking for? and how much home can you buy?"

>> get a competent realtor. why? because you want them to understand what your needs are as a homeowner. >> know the location you want to be in. if you have children and you want to focus on top, a-rated schools, research realtors that are experts in the area. >> they need to understand what your needs are, the area where you're developing it. is it close to the church? is it close to the school? does it have shopping areas around it? understand your developer. what is their background? how many homes have they built in the area? and understand the incentives that they're giving you. >> builders want your business. they want to give you incentives. an incentive could be 5% or 3% towards your closing costs, and that's cash you don't have to bring to the closing table. >> sure. and as it relates to upgrades and things like that, what role do you play? >> the important component of the realtor is to protect the buyers' interests. the builder is protecting their interests, and then there's no one to protect the buyers' interests, unless you have that realtor. >> true. >> oftentimes, you drive by new home communities, and they say, "homes offered from $300,000 to

$400,000." well, that doesn't include the lot premium, and that doesn't include upgrades, and most people spend about 10% to 20% to 30% in upgrades. >> make sure that you do your own due diligence to understand what kind of upgrades you're gonna use for the home. >> step one is picking your floor plan. step two is going out to the raw land and picking that lot that yowant, watching the slab be pouredthen you get to pick out all of your colo, your cabinets, your faucets, where you want your extra outlets. there's nothing more exciting than being able to stand on a piece of raw land, dirt, just a mound of dirt, and say, "this is where my home is going to be built." ♪ tell me about the lifestyle that you've chosen here and... >> deanna just finished building a home for bob and caitlyn, a couple who wanted to build a three-bedroom, two-bath home. >> first of all, we have great neighbors. [ chuckles ] >> yes. >> we have lucked out. >> with deanna's help, they built a beautiful 2,000-square-foot house with a study. >> that part of it is just

super. >> i wanted to stop by and just see how it all turned out. this is actually your 11th home that you've been involved with with building. >> it is. >> and why did you pick this area? >> like our realtor, dee, said, it's location, location, location. >> picked out the layout and said, "this is what we want." >> absolutely. >> the advantage of building a new home from the ground up is, you can pick exactly what you want -- the square footage, different things that you want in your home 'cause it's personal to you. >> you are in total control of your home build. you pick your colors. you pick your roof tile, your floors, your granite. you are a part of the whole process from start to finish. >> i wanted to make sure the kitchen, first of all, was bright, cheerful. >> mm-hmm. >> i picked the white cabinets because they're light, and so that would make it look a lot, to me, a lot larger. >> the particular community we're standing in is what they're selling maintenance-free living. their hoa fees are substantial, but the substantial hoa fees pretty much cover everything. >> all the ground and landscape

maintenance, all the water for the outside, the mowing of the grass, all of that from the paint out is covered by the hoa. >> that was important for you to have that? >> sure. i get to play golf. >> absolutely. >> thataboy. [ both laugh ] ♪ >>fent communities hav different monthly fees. now, although those monthly fees include a lifestyle, basically maintenance-free living, it may be fees that are too high for people that are looking to have an affordable monthly payment. it's something to be aware of. >> what kind of anxieties did you have in building a home? because for many people, from the ground up, you know, it's scary. >> you try to stay on top of the builder, watch what's going on during the construction. >> don't be afraid during the construction process to drive by that home to make sure that everything is laid out the way you intended when you started from the beginning. >> making sure, yes, did they put in the right amount of electrical outlets? did they put them in the right places? is that where you want them?

[ saw whirring ] >> so, they're able to walk in and make sure that things are set up the way that they saw it originally, you know, the outlets, the kitchen, the family room, the bedrooms. >> i absolutely encourage every homeowner to be a part of that, number one, to make sure everything's being done right and to their liking, but, number two, the pure excitement of watching your dream come true. >> we could pick out the lot. we could pick up the location of where the sun was rising and setting. i wanted a patio where we could entertain at night. those types of things you have more difficulty with if you're looking for a -- at a second home. we've always just found it more convenient, more to our satisfaction to get what we want. you get the incentives from the builders. with a good realtor that knows the builders in the area, you get a quality builder that'll work with you. >> there's nothing more rewarding than helping a family from start to finish make their dreams come true. ♪ >> we've got more information about building your home from the ground up on our website, foxnews.com/propertyman, and

i'll review some critical ti at the end of the program in the massi memo. but first, for happily ever until death do us part. well, sadly, a lot of people part long before death, and that could cause a lot of headaches when it comes to divorce and your property. [ woman vocalizing ] you totanobody's hurt, new car. but there will still be pain. it comes when your insurance company says they'll only pay

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♪ >> thanks for joining us. i'm bob massi. good news for marriages -- across america, the divorce rate is dropping, but there are still about one million divorces every year, and combine that wh 5 1/2 million property purchases each year, and you've got some problems. the two biggest commitments you will ever make are getting married and buying a home. i got an e-mail from a man named dennis. >> once you go through the divorce, you've got all of the other things that are still carrying on from the past. the big issue that i'm working on right now is, of course, trying to get her name removed from the house so that she can get on with her life. >> he went through a divorce, and his ex-wife deeded their

home to him, even though her name was on the original note and mortgage. so, the property now is in your name? is that right? >> that's correct, yeah. >> okay, but her name and your name is still on the original loan. >> that's right. >> when you get divorced, the language in the divorce decree does not bind the creditors. >> what she was looking for was to have her name removed from the note so that she could move on with her life, and i thoroughly agree with that. >> she moved away to california, and dennis was approved for a loan modification that was based solely on his own income and qualification. >> i called them up and told them that i was going through a divorce and i needed some help on this because i was gonna be just a single income to support the house. first, they had told me that i had to stop paying on the house. that was the first thing. >> and "they" being bank of america at that time was servicing the loan? >> and bank of america said, "there's nothing that we can do for you until you" -- 'cause i was current on all of the payments. once i was not current, then they were able to start the modification process. the whole thing was done solely and based on my salary alone. >> the loan modification was

processed without her having to sign anything. >> the modification was complete, and i was in the trial process for three months. unfortunately, on the third month, i got a letter saying that they were selling the loan to caliber home loans. >> oftentimes, lenders passed on their loans to servicers. those are the people that you make your monthly payments to, and then your money is sent on to theender. >> caliber wouldn't do anything, wouldn't even discuss an assumption. >> yeah, as a matter of fact, in looking over the loan-modification agreement, the representative from caliber, the new servicer, actually is the one that signed the -- the loan-modification agreement. >> yes. i got nothing from caliber until after the modification was complete, and then the letter that we had received was -- stated that "bank of america has now sold the loan to caliber." >> now, in this case, the new servicer refuses to remove the ex-spouse name from the loan, even though the lender only looked to dennis for the ability to pay. >> caliber is holding her hostage. there's no reason for her to be

on the mortgage or on any note or anything like that. the whole modification was completely based on my salary, and so she should've been removed from the -- from the paperwork. >> as we sit here today, is the value of the property still underwater? >> yes. >> today, because homes are still under value, what's a court going to do? the court can either tell the parties, "hey, go short-sell it" or "continue to make the payments." when people get divorced, there's certain language that -- that is put in divorce decrees or property-settlement agreements that basically say, "you get this property. you get the car. you get this bank account," and transfers of title happen. for example, in this case, right, your wife deeded the property to you. many times, the thought process is, "i have no more responsibility on the note," but, in fact, she did. why? because they're both still responsible for the underlying loan in case of a default. but caliber looks at it from this perspective. they say, "hey, if for some reason this property never goes up in value and this guy wakes

up one morning and says, 'i'm done,'" they have two people to go after for the deficiency. they have you, and they have your ex-wife, so they look upon her as sort of another safety net. when he makes a payment for a period of time -- for example, one year -- he could go back to the servicer, show his good-faith payment, and ask them if they would consider removing his ex-wife from the loan. you could say, "i will provide you updated financials. i'll give you my tax returns. and would you then consider removing her from this loan?" just as an alternative, let's assume that they want her on there, just what i said, as a safety net. if you have a friend, a brother, sister that is willing, many times, you could go to them and say, "listen, i have somebody that'll guarantee this loan besides me being primary. would you then consider it if they're willing to go on it just for purposes of removing her name from the note?" so, there are alternatives, and, by the way, the under and over is, this loan will probably be transferred again. >> right. i'm sure it will.

>> from caliber, you know? >> [ laughs ] yeah. >> the last thing i want to tell you, there are always new programs, dennis, that are being proposed by brokers, mortgage companies, lenders. even though this is underwater, i'm telling you, there's federal programs. there's state programs you should always look at. so, just because you have this loan mod in place, that doesn't mean the process stops. and we may try to contact caliber ourselves, saying, "listen, he is the reason why the loan modification happened," but be proactive in that yourself, and you may catch lightning in a bottle. >> i hope so. >> there's a lot more to discuss when it comes to properties and divorce, and i'm gonna speak with a few experts whose advice just might surprise you up next. [ woman vocalizing ] dentures are very different to real teeth. they're about 10 times softer and may have surface pores

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>> thanks for staying with us. i'm bob massi, the property man. as we've seen, when a couple gets divorced, it can be very tough to untangle everything related to homes and properties, but it can be done. so, i asked some experts to walk me through it. >> buying a home is, close to getting married, the biggest decision you're gonna make in your life. let's face it. >> a prenuptial agreement is important when you want to protect all of your assets. >> let's talk about a prenuptial agreement. it's a contract between both parties that intend to get married. here's what's very important for it to be enforceable in most states in the country. first of all, there has to be a total disclosure of all debts and assets between the parties, and most states require both parties to have an attorney so everybody understands what the prenuptial means, what it stands for, and what the legal impact will be if you ever get divorced. >> if you're going into a marriage with non-marital property, i would recommend a prenuptial agreement, absolutely. >> difficult, ough discuss it. love is blind. pele get married, right?

>> it is very difficult. it's a very difficult topic to discuss, but there are certain marriages that i think require it. >> there's also what's called, believe it or not, a postnuptial agreement. it's just another contract after you get married. you have a couple that doesn't want to do a prenup. they don't want to do a postnuptial after they're married. if they're married 50 years, how do they keep their assets separate? >> the best way to keep their assets separate is to keep it titled in their individual names and don't put into those accounts any monies earned during the marriage. >> so you could be married for many years, and if you keep it separate, it remains separate. >> you need to be able to prove that during the entire marriage, you didn't put any marital money into it. >> that's where you really start to get into turning assets that should be separate into marital assets. one example of doing that would be paying down the mortgage with marital funds. this is any money earned during the marriage going into a mortgage payment. >> that's what we call a transmutation. in other words, you've given up

the separate character of the property, and you've given it to both you and your wife or your husband. if somebody is married and they inherit or something's gifted to them? >> if they receive it by inheritance during the marriage, it would be considered a non-marital asset. >> so long as there is no co-mingling, and co-mingling goes back to paying down the mortgage or appreciation. >> but they never transferred the title into both names. would that -- would that other person still have a claim to some equity in the property if they get divorced? >> they could be entitled to a portion of the appreciation, especially if the appreciation is due to renovating the property, which is a term that we use as active appreciation. >> the husband or the -- or the wife buys a piece of property and puts it in their name only. >> mm-hmm. >> but it's from community funds. >> well, that's a marital asset, and that asset is going to be divided in the -- in the event of a dissolution. so that equity would be split equally between the two parties. however, the court would take

testimony as to who maintained that property. the court could award that spouse that property in an equitable distribution. >> let's talk about community property and equitable distribution. essentially, all this means is that when you get divorced, a court will look at the assets and liabilities during your marriage, and they will make a determination how they are supposed to be equitably divided amongst the parties. well, some states, like the state of nevada, are community property. in other words, there's a statute that specifically states certain things under the law. equitable distribution are mostly those states that don't necessarily have and recognize just because you're married that it's a community interest, but when all is said and done, courts always look to equity, and they will distribute the property under the laws in the state where you live. >> i represented a husband where, for example, there was a lot of net equity in the house, meaning the house was worth more than they owed. and so, when we divided the net proceeds, we were able to do

some type of unequal distribution to maybe compensate for a waiver of an alimony claim. the wife saw the money now, the husband didn't have to pay alimony to the wife, and both parties knew that house was gonna sell. >> you definitely want to interview the couple to make sure that they have an agreement and an understanding about how the mortgage is gonna work, you know, what their responsibilities are gonna be when they sign that mortgage. >> what happens with the mortgage of note? what happens with the lender? because the contract, the agreement that the parties reach is not binding on the bank. >> a divorce decree doesn't necessarily mean one party is removed from a debt. quite frankly, the mortgage lender doesn't care what the divorce decree says. a decree usually will say which property and which party is responsible for that particular debt. that debt is still joint. >> so, what they should do is probably talk to the other spouse and say, "could you refinance this property in your name alone?" and if they can, likely, they will, but a lot of times, they can't because now you have one

spouse maybe with half the income who can't refinance, and maybe their credit isn't so good. >> what do you do to protect yourself? >> this is a dangerous situation now where we have housing values that have declined and mortgages that are underwater, a lot of -- one spouse could -- could stop paying the mortgage, and then both of the parties are in foreclosure, so that's a very dangerous situation. >> if one spouse keeps the property, you want to say that that spouse will have 60, 90, or 120 days to refinance the property. if they can't do it, you want the other spouse to be able to come back into court to request that the house is sold in a partition sale. >> if you have assets during your marriage, if you inherit something during your marriage, if anything becomes a gift during your marriage and you're concerned or you don't want to have the spouse that you're married to have an interest, go get legal advice. >> i'll always recommend, you know, that someone seek independent advice from tax and family-law attorneys before making these decisions. >> up next, the massi memo, with more tips on how to navigate a

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