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michellerhind · Joined: 17 Aug 2009 Posts: 1 1.00 Dollars($)

We are going to buy my boyfriend's parent's home that was appraised @ 240k for the remaining amount on the loan to pay their loan off. The remaining amount is 80k, right now we are working on fixing our credit scores to help us get approved for that amount. I have been doing some research and was wondering if you could answer a few questions.

Because there is a little amount left on the loan would it make more sense to buy the home and than once paid off have the title transferred to us from his parents? Would there be any taxes involved in that?

Can we draw up paper work ourselved based on an agreement that would hold up in transferring the loan?

Do we need to have pay closing costs if the house if never listed on the market?

Also, the parents will remain living in the home, does that effect any of the outcomes to us buying the home as opposed to them "giving" the home to us once paid off?

I guess I am looking for direction here due to a few factors- both partied are flexible in how to accomplish the ulitmate goal of us, my boyfriend and I, owning/getting the home. We just aren't sure on the path to take to protect us if something were to happen to them or the home in lieu of us buying it.

Thanks so much for any ideas or opinions you may have to share!!

Niicss · Posted: Tue Aug 18, 2009 1:44 am Post subject:

If the property is transferred to you as a gift, then your boyfriend's parents will have to pay the gift taxes. If you purchase the property from them, then they won't be liable for this tax. Rather than drafting the paperwork yourself, it would be better if you could take the help of an attorney to draft it. Though the property is not listed in the market, you'll have to pay the closing costs when you are taking a mortgage. While transferring the property to you, your boyfriend's parents can add a life estate clause into it. This will give them the right to live in the property until death. However, I don't think this will affect your chances of getting a loan.

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Are there details to buying parents home under appraisal value?