Profile picture for sunshineswtie6

Not sure where to start

I am interested in obtaining my parents home. They are looking to sell/sign over this home this year. I don't know what the best process is to do this. If I purchase it they only want me to pay the pay off amount. If there is a legal way to sign it over to me they would prefer it. This home is not mortgaged through a bank but is a seller carry. Where do I start and what options are actually feasible?

  • February 05 2014 - Covington
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Answers (6)

Profile picture for sunshineswtie6
Thank you for the responses! We are looking for the right professionals for the job! I hadn't considered tax implications so I'm happy I asked!
  • February 09 2014
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In addition to possible tax consequences, there may be an impact on government benefits, so consulting an attorney would also be prudent.  They presumably could handle any deed preparation issues and review the existing security documents for due on sale provisions.
  • February 06 2014
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Wetdawgs has a good answer.  We suggest that you consult with an Attorney who handles real estate & personal taxes for both yourself and your parents.
  • February 06 2014
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You would need to talk to a tax advisor first as there will be tax implications.  Next you could talk to the current mortgage holder to see if they will assign the mortgage to you but most likely you will need to talk to a lender and get a loan (unless you are paying cash) to actually buy the property and get the loan out of your parents name.  A lawyer or a title company could do the final paperwork for you.
  • February 06 2014
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You start with a CPA. As wetdawgs alludes to, when property or money are in motion, you risk triggering tax events. It is also a good idea to have the contract with the seller reviewed by an attorney.

All the best,
  • February 05 2014
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Profile picture for wetdawgs
There are two aspects:

1.  You will need to qualify for a mortgage of the amount your parents owe, so start with a good lender.

2.   Your parents are likely to owe gift taxes on the equity they are giving you, so they need to meet with an accountant.

3.   A title company can wrap everything up into a neat package.

  • February 05 2014
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