I Need Help With A Situation (don't We All?)
Ok, here's the deal...
I was in the technical world (Nortel) until 2001 when the bottom fell out. Could not find work, got way into more debt and my credit went to he**.
I own my house in Texas, but I also own a house that my mother lives in in MN. Since Texas has such horrible laws about home equity, I decided to tap the equity in my other house. No dice. Can't qualify for a refi.
So, a friend of mine said that she would buy the house and hand over the profit to me.
I want to get the house back from her ASAP (and she wants me to get the house from her ASAP).
So, would this be a sub-2 deal? I will be making the payments on the house even when she buys it.
Help? 
sammiecat,
This would not be a Subject To deal in the traditional sense.
Your mother could finance the house then put the property in a Living Trust and appoint you as the trustee of her estate. You could also stipulate in the turst that the property would go to you should anything happen to your mother.
You would be well advised to seek professional consul however when setting up the living trust but well worth. I belleve this will solve you inquiry.
John $Cash$ Locke
John,
It is not my mother doing the financing, it is a friend. My mom cannot qualify for anything either because she is retired and on a fixed income.
I am trying to get the house back from my friend when I sell it to her.
1) Since you can not refinance (for a lower rate and take cash out) your friend will buy it, save the costs and quit claim it then have her refinance (if it will appraise)
2) The friend has control of the property she gave you the cash and yet you want to make the new loan payments. You have used the friends credit and will continue for 2-3 years before you can POSSIBLY refinance it again.
Our suggestion: Follow the subject to but behind the scenes A. create a charitable remainder trust, B. use the tool that works –Well drafted a family limited partnership. Section 704 of the IRS code – they have been used since 1916; and ratified in all 50 states. Family Limited Partnership – (stops lawsuits cold) where it does not matter if you change states. C. Living Trust –
Separate the ownership NEVER relinquish control and structure the combination of the above (A,B,C) to create the net effect of:
No capital gains tax
More retirement income
No estate tax
Income tax refund (gives the refund right
now)
You control Trust (future payments will be due)
Best Retirement Plan (well drafted and pre-approved by IRS)
Lease back the trust assets to the business
Finally Pay the friend $5K, in six months quit claim the property to the Charitable Remainder Trust
If you have questions, obtain legal advice,
Eric & Rosa
[addsig]
Thank you for the well thought out advice.
I cannot say that I understand it all, but I will try...
Can anyone clarify this advice for me? I guess I am not as smart as I thought.
Thanks
If your friend chooses to buy the home and give you the profits, just have her add you on to the title for the protection that you need. After you are able to qualify for a mortgage, just refi and get her off.
Hoped that helped~
I know, I know....
You could mary her and then refi and then a week later annul the marriage. You gotta be creative! LOL
Quote:
On 2003-11-13 00:22, cscarpero wrote:
I know, I know....
You could mary her and then refi and then a week later annul the marriage. You gotta be creative! LOL
I think this is the best solution!!!!
Josh