Posted on: 26th Jan, 2011 04:22 pm
I currently have an owner financed house that the person I have the contract with now wants to go get her own mortgage with a bank. I have a mortgage on that house, if the house her banks pays off my mortgage on that house, what about income taxes?
Hi joyce!
Welcome to forums!
If you already have a mortgage on the property, then you shouldn't have owner financed the property. It will be considered as fraudulent and you may be penalized for it. If the buyer gets a mortgage on your property, then you will be able to pay off the loan in full. However, as far as the taxes are concerned, your tax adviser will be the best person to help you in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you already have a mortgage on the property, then you shouldn't have owner financed the property. It will be considered as fraudulent and you may be penalized for it. If the buyer gets a mortgage on your property, then you will be able to pay off the loan in full. However, as far as the taxes are concerned, your tax adviser will be the best person to help you in this matter.
Feel free to ask if you've further queries.
Sussane