Taxes And "Subject To"
I'm helping a friend stationed in Bagdad.
He is desparate to sell his house.
Value 150K
owes 141K
Seller has agreed to sell "Subject To" to a buyer I found.
Buyer paying 148K 2 k down and paying amount equal to morthage payment.
How does he Buyer deduct interest on his new house purchase if the loan is still in the name of the Seller???
Help!
J
Where's the house located?
Are you looking for someone to handle this, or are you trying to handle it?
I'm trying to handle it, but am open to any help or suggestions.
Jay:
Are you using John Locke's Sub2 course?
If so, and you use his method of using a Loan Servicing Company (LSC) to handle the payments, they can generate the appropriate forms for interest deduction to your buyer.
Basically your buyer makes payments to the LSC, who then pays the original mortgage and escrow (if there is one) for insurance and prop. taxes. The LSC then has the records of payments and can generate the 1099 (or is it a 1098--not sure which one). Check with the LSC to make sure they can do this before setting up the account with them.
Andy
Hello, I am in Southern Ok. Have done a lot of Subject To investing in Ok. and some other states. Also do a good bit of mobile home-land development . E-mail me if you need help. I might save you some headaches. **Please See My Profile**
Quote:
On 2004-11-14 22:42, Dchucul wrote:
Have been a member for some time. Can only remember one post from an okie. I just recently got John Locke's Sub-to manual. Have formed LLC, have a respected accountant on board, and have an interview with well referenced attorney on Wednesday. Just curious if there's anyone out there from OK. doing this. There is a REI club in Tulsa that meets once a month, but couldn't make this month's meeting. Thanks in advance for your response.
<font size=-1>[ Edited by Dchucul on Date 11/14/2004 ]</font>