Posted on: 07th Jul, 2010 09:14 pm
I am trying to get into another house (bigger with a pool :D). I am upside-down (120K) and cannot qualify for another home loan. My Realtor mentioned that I could have my parents buy a house and they would keep the "deed" and sign the "note" over to us, therefore granting us tax benefits. This throws many up red flags for me. Does anybody have any pointers, comments, concerns???
How would this affect both my husband and I and my parents now, during tax time and down the road.
Once I can qualify for a home loan (possibly years down the road after my credit is rebuilt), can I purchase the home from my parents for the amount owed on the loan or would fair market value play any role in the pricing???
AHHHHH - please help? :D
How would this affect both my husband and I and my parents now, during tax time and down the road.
Once I can qualify for a home loan (possibly years down the road after my credit is rebuilt), can I purchase the home from my parents for the amount owed on the loan or would fair market value play any role in the pricing???
AHHHHH - please help? :D
"I purchase the home from my parents for the amount owed on the loan or would fair market value play any role in the pricing??? "
I don't think fair market value will come in between this deal as this property deal is in between your father and you.and father can transfer his property (along with mortgage) to his heirs to any cost (even free as well)
So,I don't think you will be in any trouble.Just go ahead with the deal.Best Wishes.
:arrow: :arrow: :arrow:
I don't think fair market value will come in between this deal as this property deal is in between your father and you.and father can transfer his property (along with mortgage) to his heirs to any cost (even free as well)
So,I don't think you will be in any trouble.Just go ahead with the deal.Best Wishes.
:arrow: :arrow: :arrow:
Hi j2k,
I guess you're speaking about the mortgage note here. If you cannot qualify for a home loan, then how can your name be added to the mortgage note? Moreover, if your name is mentioned on the mortgage note, the lender will want you to add your name to the property.
If your parents purchase the property and take out the loan, then later on, when your credit improves, you can get the property transferred in your name and refinance the mortgage.
I guess you're speaking about the mortgage note here. If you cannot qualify for a home loan, then how can your name be added to the mortgage note? Moreover, if your name is mentioned on the mortgage note, the lender will want you to add your name to the property.
If your parents purchase the property and take out the loan, then later on, when your credit improves, you can get the property transferred in your name and refinance the mortgage.
Hi adonis
In my opinion second option suggested by you would be the best for j2k.
In my opinion second option suggested by you would be the best for j2k.
I do not think the deal between the fair market value of the property deal will come as you.and between his father and father with the mortgage) for any cost to your heirs own (property transfer can . So, I do not think any of trouble.Just deal.Best wishes would go forward with. he could have his name both on the job. However, mortgage interest claim will be yours alone.