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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

This discussion is 8 years long and running!

If I add a relative to the title, then cash-out [url=http://www.mortgagefit.com/refinance.html]refinance[/url] and later quit-claim title to a relative (who assumes the loan entirely) do I have to pay taxes on any of it?

And also where would I get such a loan, that could be assumed in such a way

Like | Dislike | Share | Posted: Sat, 02/02/2013 - 14:52 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi IndianaLones,

You may be liable for property transfer taxes and other associated fees. Also, if it's a gift transfer and if you cross the exemption limits, then you may be liable for paying gift taxes.

Like | Dislike | Share | Posted: Sun, 02/03/2013 - 22:18 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks! The property has about $200k in loans and is worth about $500k. Any idea where I could get one of these assumable refis?

Like | Dislike | Share | Posted: Tue, 02/05/2013 - 12:05 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Indiana,

Well, if your mortgage docs mention the fact that the loan is assumable, then only someone else will be able to assume the loan. You should check the mortgage docs carefully for the same.

Thanks

Like | Dislike | Share | Posted: Tue, 02/05/2013 - 22:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am currently considering refinancing my $240,000 mortgage for a $180,000 mortgage. The gentleman who is helping me with my refinance told me that we may be able to get my current lender to accept a settlement amount of $180,000 on my $240,000 mortgage. My payment history with them is excellent, I am only trying to lower my interest rate. My question is this...what effect does the $60,000 "written off" by my current lender have on my taxes? Will it be considered as income for me? I don't want to do this deal if it's going to mean owing the IRS next April.

Like | Dislike | Share | Posted: Thu, 04/30/2009 - 10:10 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

traci, the lender in question is probably going to issue to you a 1099 form and that $60k will appear as taxable income. you'd better speak with a tax advisor, or the irs directly, and also ask the bank its intentions as to whether they'll be issuing the 1099.

sara...i have never heard of anyone claiming proceeds from a cash-out refinance as income. that's not to say it doesn't happen, of course.

also, it looks like you were addressing 1031 exchanges in your post - now close to 4 years ago. i'm just curious if that's what you were discussing. i didn't get that reference from the original post.

Like | Dislike | Share | Posted: Thu, 04/30/2009 - 10:19 | Post subject:

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