How long should I wait before I my friend (who co-signed my mortgage) of the contract?

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What are the risks if my friend has accepted the loan conditions are so I can get a loan Greatti .. my plan is, after all, they take the loan ASAP├╝brigens I have excellent credit is that I need another job, money only pays, and if I had to ask for the loan documentation Complete .. So I could not prove my income .. with other work I applied I am sure can pay the mortgage w / no problem, because I can not agree to buy w / a mortgage with a home run.
My daughter and son-in and took two small children in the United States from Italy and my husband and I lived for the last 7 months. Want to buy a house, have to put $ 75,000 in cash, and I recently took a second mortgage (15 years 6% fixed rate loan home equity) free loan for $ 160,000 for interest, so that they buy a home with money for $ 235,000. But my husband and others tell me they can with the IRS, etc. kompliziertWir expected, the documents showed how a promissory note and said that to make monthly payments on the loan is $ 160,000, which is under my name. And if she should die or move out of the loan, would pay the price for the sale of the house to repay the loan at $ 160,000. Do I interest you in charge? Are you really going to repay the loan, which is under my name and is already paying a 6% interest. Is it the fact that more than 100,000 dollars is a problem with the IRS and interest-free loan of the family is? This is not a gift because they pay ausgeschaltet.Es this is very complicated and I do not want a great gift tax on interest or imaginary, or, worse still stuck, get into trouble. Do I need a lawyer or can we just note Quicken Lawyer order and be OK? I hope to pay my daughter and son-that the loan in my name. It is precisely for them to get a loan, because now the requirements for 2 years stay, 2 years hard work and 2 years in the credit of the United States. House prices are falling and I want them to be able to buy one now.

6 Comments
  1. Reply
    Spock (rhp)
    January 22, 2011 at 8:28 am

    you can’t get her out of the loan without the permission of the owner of the loan — the mortgage company.

    their method is usually a re-fi and you’ll have to qualify for that.

    maybe the markets will change in three years or so to permit that.

  2. Reply
    charlie m
    January 22, 2011 at 8:33 am

    Check with the mortgage holder directly. If you get a green light a quick claim deed might work well in this case.

  3. Reply
    Miriam
    January 22, 2011 at 9:16 am

    All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.

  4. Reply
    sdn90036
    January 22, 2011 at 9:53 am

    It would be a lot easier if you didn’t have your friend co-sign on the real estate contract to begin with.

    Good luck.

  5. Reply
    v b
    January 22, 2011 at 10:26 am

    Item 1. You get the loan recorded. Your local records building can do that for you. (You need the loan recorded for two reasons–one in case you have foreclose and 2nd so she can deduct the mortgage interest on her taxes.)

    Item 2. You can’t loan $ 160K without interest to them. If the loan is for more than 9 years, the current minimum interest rate is: 4.29%. (You can charge more.) This is taxable interest income to you. You would list it on your 1040 schedule B, showing your daughter’s SSN, name and address.

    At 4.29%, that’s $ 6800 in interest in year 1–you can gift her the interst if you want (because it’s less than $ 13,000), but you STILL have to list it as income on your tax return.

    See IRS pub 550.

  6. Reply
    Glenn S
    January 22, 2011 at 11:17 am

    You are going to be the mortgage lender. Have escrow draw up a Note secured by a 1st Deed of Trust in favor of you and your husband on the property that your daughter is purchasing. You are required to charge interest according to the IRS. Make at least 6% interest to cover the payment on your own property….that way it will be a wash, the same for you, your daughter and her husband.

    The reality, sometimes people die or get divorced. If you don’t have your name on the property as the lien holder your son-in-law could take the property and not pay you back if your daughter died, or take half of the equity including what you lent them in the case of a divorce without being named as the mortgage holder.

    Also require that you are named as the lien holder on the their homeowners insurance. Make sure that they buy title insurance and also direct the title company to notify you if they should not pay the property taxes. Have all “all due on sale” clause if at some point they decide to sell.

    It’s great that you are willing to help your daughter out buying a house, but you also have to protect yourselves financial.

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