Posted on: 01st Jun, 2009 10:32 pm
My father is retired and wants to sell his home worth 200,000 for 140,000 to a family member to keep it in family. The loan officer told me I can not purchase his home because of a new law that was passed. Can you explain.
Hi
It seems that the loan officer is referring to the arm's length transaction which is a transaction between two parties who are independent and unrelated to each other. This is to make sure that both the parties are acting in their own self interest and the agreed-upon price is not grossly different from the actual fair market value. However, it is possible to sell homes to people related to you like a family member or a relative. It could be done by hiring a third party who has no interest in the transation, like an appraiser or a broker who will give his professional opinion that the sale price is reflective of the actual fair market value.
It seems that the loan officer is referring to the arm's length transaction which is a transaction between two parties who are independent and unrelated to each other. This is to make sure that both the parties are acting in their own self interest and the agreed-upon price is not grossly different from the actual fair market value. However, it is possible to sell homes to people related to you like a family member or a relative. It could be done by hiring a third party who has no interest in the transation, like an appraiser or a broker who will give his professional opinion that the sale price is reflective of the actual fair market value.
i think that loan officer is on something. there is no law that prevents a parent from selling a home to a child, and the price to be paid isn't legislated either.
go ahead with your proposed transaction - simply make sure that you meet all requirements of a "normal" loan officer (if you can find one). that's a joke, by the way.
go ahead with your proposed transaction - simply make sure that you meet all requirements of a "normal" loan officer (if you can find one). that's a joke, by the way.
Legally you can purchase your father's home.
I think loan officer is misguiding you......
I Can Help With Your Mortgage!
I would love to assist you. Email me back, and let's discuss!
MSmith@PrecisionFundingUSA.com
M
I am on line now!
I would love to assist you. Email me back, and let's discuss!
MSmith@PrecisionFundingUSA.com
M
I am on line now!
being online is not qualification for lending expertise.
surajab
Welcome to forum. There is now such law which prevents you from buying your fahters home.
But if yoru father sells yout the home for lower price thna the market value, it may eb considered a tax fraud. The tax guys will assume that your fether sold it to you at a lwer price just so you pay less taxes on it.
Welcome to forum. There is now such law which prevents you from buying your fahters home.
But if yoru father sells yout the home for lower price thna the market value, it may eb considered a tax fraud. The tax guys will assume that your fether sold it to you at a lwer price just so you pay less taxes on it.
which law? can you explain? some guidelines about such law?
Sunil87020
Every one said there is no such law
Every one said there is no such law