CAN ANYONE HELP?
ok about a week ago i asked for help with this but i haven't recieved too much in lieu of help so here it goes again.
My grandfather decided that he couldn't take care of his house anymore. so he decided to sell it to me. due to my younger days my credit score is not what it should be so i couldn't find financing. So we decided that he could refinance the house and i would make the payments. Which i have done faithfully, as a matter of fact i have it auto withdraw from my account bi-weekly.
anyhow, when we refied the house my name was supposed to be added to the title, but i don't see anything that says that. (i even signed some paperwork.)
but at the same time i signed a real estate purchase agreement between my grandfather and myself. but we never filed it.
so i was wondering, how would i get the deed in my name from this point. could i just go and file the purchase agreement or should i have a sub to dran up?
[addsig]
quick update the house has a fmv of $93,500.00 but i only have to repay the refy of 55,000 which will leave me with alot of equity that i can use to start my investing career. so i would really like to be able to get a home equity line on the house. but with my wounderful credit i doubt i'll be able to refy in my name.
I will try to help just because nobody else has. But this is not an area of expertise for me
If your grandfather has owned the house for a long time and bought it at a low cost, then there is a huge tax issue with him deeding over the house to you. In these situations it is usually better for him to leave it to you in his will.
Meaning if he had bought the for 20k and now Fair market value is 90k, I believe he will have to pay taxes on 70k.
What might be a better idea is to have him put the property into trust and have you as the benefical interest. Which basically means that you are incharge. He might want you to be 50% benficial and himself to be 50% beneficial. Not sure about the tax implications of this.
I do not know how you transfer title and not trigger any tax consequences for you grandfather.
Maybe ask this question in a couple of days in the legal forum. There are some pretty sharp minds there.
Brenda
Just have your Granfather grant deed you the property. There is not tax issue here. It has been his primary residence for a long time. He qualifies for the $250k deduction if single and $500k if married. I believe there is also a one time law for senior citizens. You are OK.
Just make sure you get that grant deed
recorded!
Then go out and take a credit line againsts it and start your career in real-estate. As Rajwarrior writes: You have invested in yourself now!
Best Riches,
Jeff adam
[addsig]
i dont think i should have to worry about it since the payment i automatically coming out of my account but should i worry about the dos? cause that clause is in there.
raymo28,
Glad to meet you.
My advice to you is contact an attorney to straighten your situation out.
Ask him about a Family Limited Partnership, this will eliminate your concerns about the DOS clause and protect your position in the property.
John $Cash$ Locke