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vjm82466
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Post subject: Gift of Equity |
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| I am selling my brother-in-law a house on 13.98ac. He has been paying the mortgage payments and taxes for the last 4 years. I am keeping approx. 2 acres of land as my equity. The property appraises at $65000. My brother-in-law is getting a loan to pay off the existing mortgage of $38000 and that way the mortgage will be in his name. Do I need to write a gift of equity letter? How would you figure the amount that is being gifted? |
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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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Hi
Are you going to help your brother-in-law with the down payment towards the loan? If you make any cash payment to him to help him with the down payment, you’ll be required to write a letter of equity to the lender to confirm the fact that money of the down payment is not from any borrowed source. |
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vjm82466
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Post subject: |
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| No cash money is changing hands between us. He is just getting a loan for the payoff amount of my current mortgage so he can get the property in his name. |
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LUEY
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Post subject: Gift of equity |
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we are buying a house from our daughter and son in law for what's owed on the home $109 thousand after closing cost and fees we will be financing $118 thousand....we were asked to get out son in law to sign a letter gifting us equity of $48 thousand...do they intend to actually use this money as a down payment raising our total to be paid $168 thousand?
Nothing was said about using this money as downpayment but only to show the value of the house...now I've talked to our accountant and read all these horror stories...does this sound right?? |
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katiegirl
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Post subject: gifting a house |
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| My son and his wife just bought their first house. 2 weeks later they split. They bought the house with no money down, so there's no equity at all. She wants no responsibility for the home. He's willing to take it alone. Can she "gift" the house to him thus allowing him to remove her from the mortgage and title to the home? They are not yet divorced as it has just recently happend. They are young, no kids and have no other credit obligations and nothing to contest, so the divorce will be a matter of filing the appropriate paperwork. |
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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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To katie,
Your son's wife can transfer the property ownership to your son through a quit claim deed. But this will not take her name off the mortgage. Property title and mortgage are two different things. Your son will have to refinance the mortgage in his name to get his wife's name off it. She can gift her share of ownership, but she cannot gift her liability towards the mortgage. If she wants her name off the loan, your son will be required to refinance solely in his name. |
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marinomortgage1
Joined: 27 Nov 2009
Posts: 2
Location: Fort Lauderdale
1.27 Dollars($)
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Post subject: Gift of Equity |
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Usually has to be a Family member gifting equity out of the property in order for you to use it for down payment money  |
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dlham1959
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Post subject: gift of property |
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| I need a gift of property form, Family member is gifting property to me and I am making a equity loan and need a gift of property letter |
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jameshogg
Joined: 20 Dec 2005
Posts: 10148
Location: Nevada
941.94 Dollars($)
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Hi dlham,
I don't think there is a separate form available for gift of property. If a person wants to give you a property as a gift, then he or she will have to use a quit claim deed. You can contact an attorney and he would help you in drafting the deed.
Thanks |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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The smartest way to go about this is to call it a purchase, which is what it really is. Then complete a purchase contract between the two of you and incorporate the language about the gift in the contract. As James said, you can have an attorney help you out with the language and the format.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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mdt
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Post subject: Gift Letter |
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| We are in the process of moving my parents into an assisted living facility and I am going to buy their house. This facility is based solely on SS and they are asking for a gift letter from my parents stating they are gifting me the home, but I will be purchasing at a latter date. Is there such a letter for this type of transaction |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Post subject: |
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| Well... it'll be better if you could contact an attorney and get such a letter drafted from him. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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Post subject: |
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Great idea to engage an attorney, especially in light of what's being asked. If you're purchasing the home, why is the assisted living facility seeking a gift letter? That seems pretty odd.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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T
Guest
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Post subject: down payment gift |
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| I am purchasing a home. I have the required 5% down. My mother wants to give me more to help lower my mortgage payments. Do I need to inquire of my lender and if so, will they try to pad the cost of the loan when they see that I have "extra" money? Is there any way around the gift letter? I have the check now. Can I just deposit it ? My lender assumes I am only putting the required amount down. Should I tell them that I am interested in putting at least 10 percent down? Will my lender want to trace my down payment? when will they trace it? A day before closing? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Post subject: |
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Hi Guest!
Welcome to forums!
If your mother is giving you the money as a gift, then you'll have to get a gift letter for the same and inform the lender about it. The lender will want to trace down the payment. The gift letter will help the lender in that matter.
Feel free to ask if you've further queries.
Sussane |
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