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Posted: Sat Nov 21, 2009 5:12 am Post subject: HELP SIS

MY SISTER LOST HER JOB SHE IS HAVE TROUBLED PAYING HER MORTGAGE MY MOM HAVE GOOD CREDIT AND A GOOD JOB WILL IT BE BETTER FOR MOM TO GET A NEW LOAN ON THE HOUSE OR REFINANCE IN HER NAME BECAUSE MY SISTER ALSO HAVE BAD CREDIT HOW CAN SIS GET HER EQUITY

savior70 · Posted: Sat Nov 21, 2009 5:52 am Post subject:

Hi,

Since your mom has good credit and a good job, it will be better if she refinances the loan in her name and takes over the mortgage responsibility. How much equity in there in the property? Is it possible to do a cash-out refinance? In case it is possible, your mom can repay the current mortgage and also use the excess money to pay your sister her share of the equity in the property.

Posted: Sat Nov 21, 2009 5:57 am Post subject:

property is worth 120,000 my sis payoff is 85,000 so mom will needto refinance how much

Posted: Sat Nov 21, 2009 6:02 am Post subject:

SOMETHING ELSE MOM HAVE NEVER PURCHASE A HOME WILL SHE BE ALLOW TO GET THE TAX CREDIT FIRST TIME BUYER

savior70 · Posted: Sat Nov 21, 2009 6:08 am Post subject:

Hi,

How much your mom needs to refinance for depends on how much she can qualify for and how much your sister wants to take as her share of the equity. Talk to your sister and her mother regarding this. Once they come to an agreement as to how much money your sister should get for her share, you can decide on the loan amount accordingly.

If your mom has not owned a primary residence for the past 3 years, she qualifies as a first time home buyer and can claim a maximum of $8k tax credit. But she will need to buy the property from your sister and be on the title to the house.

Posted: Sat Nov 21, 2009 6:23 am Post subject:

SO THAT MEAN NEW LOAN NOT REFINANCE

jerry · Posted: Sat Nov 21, 2009 6:54 am Post subject:

Hi Guest,

If your mom refinances just to take over the mortgage liability, she does not qualify as a first time buyer. As the term itself suggests she has to be a 'buyer' to claim the tax credit. She has take a new loan and pay the purchase price and then the existing loan will be paid off in full.

But in this case, your mom cannot claim the first time buyer tax credit if she buys the property from your sister because purchases from lineal descendants like children, grandchildren are not allowed for the purpose of tax credit.

Thanks,

Jerry

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