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Leperflesh posted:As a buyer, you can make any offer you drat well please. You are not under any obligation, ever, to be "nice" to the seller by meeting their unrealistic expectations. That includes both ordinary sales, and REOs. No I'm very aware of the implications, the places I'm looking at are almost completely finished. To be "livable" would require buying a fridge, microwave, stove, dishwasher and dryer/washer. They're mostly 2 bed/1-1.5 bath houses that are "finished" just missing the fun stuff that can easily be done over time. Floating cost really wouldn't be an issue because if I were to get a house at that price I would be cutting my monthly housing cost in half which would provide more-than-enough money to do things at my own pace on the weekends. I already deduct my taxes as I work from home so being able to add on the taxes from a mortgage would be splendid. I'm not looking to purchase right away - I'm on a lease until July 1st so I'm mostly just doing research, checking my potential options and figuring out what exactly *I* want out of the deal. South Dakota has a home buyers class which is one on one with a bank to answer any questions you have which I plan on taking. Not only will I get informed, I get 3% off closing costs by taking it so  I'm aware that it will take forever to get what I'd want done on a home finished, I helped a friend of mine build a bathroom in his basement when I moved in with him so he could sell the place. It was supposed to take maybe 2 months worth of weekends due to the simplistic nature of the idea but ended up being a 5 month project. That bathroom was drat-sexy though. I'm mostly frustrated being a potential buyer with the market here because I'm a gay male with a partner and it seems builders don't care about "bachelor/no kids" houses. We're looking for something where they focus more on the master bedroom, bathroom, kitchen and less on how-many-bedrooms-can-we-shove-in-this-property type homes but it seems all builders are focused on the platonic family here. That is mainly why getting a semi-unfinished foreclosed home seems ideal for me as I can finish it exactly how I want it on my own terms rather than getting horesfucked by some assclown by changing a massive family room into 80 bedrooms. Edit: and by family room I mean cocktail party room
flyboi fucked around with this message at 19:57 on Aug 1, 2011 |
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Aug 1, 2011 19:49
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Quick question for anyone familiar with VA loans. My wife and I just started looking for a home ONLY because her parents dropped a bomb and offered to front money for a down payment. During our meeting with the loan officer we found out that I was eligible for the VA loan which I had no clue about. It's a 2% fee in order to put 0 down. Based off our calculations, it seems like using the money from her parents as the down is better than taking the 0 down and lowering the financing amount... I think. Just looking for possible solutions to where I have what appears to be the best of both worlds, the ability to put 0 down and having a significant down payment.
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Aug 2, 2011 00:27
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The Wormy Guy posted:Quick question for anyone familiar with VA loans. Step 1. Borrow less money Step 2. Pay less interest Step 3. There is no step 3. If you have 20% to put down its better terms (generally) than pretty much any other loan you can do. As you put in more than 20% the terms only get more favorable for you. Put down as much as you can afford to tie up in a very restrictive "savings" account all your new junk-mail will be sure to tell about.
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Aug 2, 2011 13:26
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Dijkstra posted:loving realtors... Here's a story for you I ran into this exact situation when looking a few months ago. It was a nice house, but overpriced. It originally sold for $138ish back in 2005, and thats what they had it listed at last year when it sat on the market for 8 months. They took it off the market for 4 months, and re-listed it for $136k, and in the MLS listing it said SELLERS MOTIVATED, IMMEDIATE OCCUPANCY, BRING ALL OFFERS! So based on the price per square foot, and recent comps, and some things that I could see that needed to be fixed or addressed, I offered $123k. Their counter? $135k. Good luck with that assholes. House is still on the market, and I found a much nicer home for less money in a better neighborhood.
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Aug 2, 2011 14:18
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The Wormy Guy posted:Quick question for anyone familiar with VA loans.
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Aug 2, 2011 15:21
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gvibes posted:Is the money from her parents a gift or a loan? Just FYI, you are going to have to jump through some hoops in the mortgage application process if it's a gift. All they'll have to do is make the parents provide a bank statement showing the money leaving their account along with a letter saying it's a gift, it was no problem for us.
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Aug 2, 2011 15:40
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sanchez posted:All they'll have to do is make the parents provide a bank statement showing the money leaving their account along with a letter saying it's a gift, it was no problem for us. Anything more than 13k in this year you have to pay taxes on. Just a heads up for tax filing or you might be a little ;_; when you file for taxes and get dinged. The bank will report the deposit into your bank account so the IRS will be well-aware you received that money and curious as to what you're declaring it as.
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Aug 2, 2011 16:18
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flyboi posted:Anything more than 13k in this year you have to pay taxes on. Just a heads up for tax filing or you might be a little ;_; when you file for taxes and get dinged. The bank will report the deposit into your bank account so the IRS will be well-aware you received that money and curious as to what you're declaring it as. Wait what, isn't gift tax the givers problem? (If they give away 1mil+ over their lifetime) Or does it count as income? http://www.fairmark.com/begin/gifts.htm Seems fine to me. sanchez fucked around with this message at 16:25 on Aug 2, 2011 |
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Aug 2, 2011 16:22
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sanchez posted:Wait what, isn't gift tax the givers problem? (If they give away 1mil+ over their lifetime) Or does it count as income? It depends on the conditions of the gifting and at least with my dad he's a cheap rear end and made me claim the money when he gave me money towards a car. Although it was the end of the year so we just did 12k in December and the rest the following year.
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Aug 2, 2011 17:29
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flyboi posted:It depends on the conditions of the gifting and at least with my dad he's a cheap rear end and made me claim the money when he gave me money towards a car. Although it was the end of the year so we just did 12k in December and the rest the following year. If I'm reading that doc correctly neither of you should have paid any tax, unless he's already given you a million dollars.
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Aug 2, 2011 17:32
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quote:It depends on the conditions of the gifting and at least with my dad he's a cheap rear end and made me claim the money when he gave me money towards a car. Although it was the end of the year so we just did 12k in December and the rest the following year. 1. Gifts are never taxable to the recipient. Filing of a gift tax return is the responsibility of the gifter. 2. I'm not sure what your dad wanted you to 'claim'. There's no tax advantage to gifting - for you or your dad. 3. Neither of you should have paid any tax. It's not even relevant unless your dad is some kind of multi millionaire with an enormous estate.
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Aug 2, 2011 17:38
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sanchez posted:If I'm reading that doc correctly neither of you should have paid any tax, unless he's already given you a million dollars. Correct, because it was under the minimum. Admiral101 posted:1. Gifts are never taxable to the recipient. Filing of a gift tax return is the responsibility of the gifter. http://www.irs.gov/businesses/small/article/0,,id=108139,00.html Who pays the gift tax? The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement. Like I said, my dad's a cheap rear end.
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Aug 2, 2011 18:11
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The minimum is a million dollars, unless he's already given you that, or is going to, there is no problem, there was no point splitting the transaction.
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Aug 2, 2011 18:25
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sanchez posted:The minimum is a million dollars, unless he's already given you that, or is going to, there is no problem, there was no point splitting the transaction. How many annual exclusions are available? The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, and $13,000 on or after January 1, 2009, the annual exclusion applies to each gift. The IRS would like to tell you that you're wrong. Any-who less tax talk more house talk.
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Aug 2, 2011 18:28
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flyboi posted:How many annual exclusions are available? Nope, you're not reading it right. If you give more than the exclusion, you have to report it, but that's all, there is no tax liability until the million dollar mark is hit. EDIT: Actually it looks like the limit has been raised to 5 million. sanchez fucked around with this message at 18:34 on Aug 2, 2011 |
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Aug 2, 2011 18:32
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quote:How many annual exclusions are available? You're saying that a gift from someone's in-laws would have tax implications, when in the vast, vast majority of the cases it would not, so it's kind of relevant in context of this thread. Anything above the 13,000 is applied against a lifetime exclusion. The excess is NOT taxable in any way shape or form, unless you also exceed this lifetime exclusion. You paid tax when you shouldn't have. The Wormy Guy will not owe tax either unless he's already been receiving extraordinarily lavish gifts from his in-laws for years now.
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Aug 2, 2011 18:38
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DJCobol posted:I ran into this exact situation when looking a few months ago. It was a nice house, but overpriced. It originally sold for $138ish back in 2005, and thats what they had it listed at last year when it sat on the market for 8 months. They took it off the market for 4 months, and re-listed it for $136k, and in the MLS listing it said SELLERS MOTIVATED, IMMEDIATE OCCUPANCY, BRING ALL OFFERS! So based on the price per square foot, and recent comps, and some things that I could see that needed to be fixed or addressed, I offered $123k. Their counter? $135k. But this place literally had nothing done to it since the current owners bought it in 1999. We would have to probably buy appliances before too long. Not to mention we would need to rip out a bunch of old paneling, redo electrical outlets, paint, fix some gutter drainage issues, landscape and crap like that. So yeah, good luck assholes.
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Aug 2, 2011 18:42
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flyboi posted:Anything more than 13k in this year you have to pay taxes on. 1) gift from mom to son-in-law 2) gift from dad to son-in-law 3) gift from mom to daughter 4) gift from dad to daughter. Not 100% sure on that.
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Aug 2, 2011 19:03
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The gift tax is only for the giver of the money. They can donate up to $XXX per year/lifetime/whatever and not have to pay taxes on it. The receiver of the money has to pay income taxes on it, regardless. (Note: There are some exceptions, like everything in our tax code).
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Aug 2, 2011 19:08
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quote:The receiver of the money has to pay income taxes on it, regardless. (Note: There are some exceptions, like everything in our tax code). The receiver of a gift? No, never.
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Aug 2, 2011 19:11
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Admiral101 posted:The receiver of a gift? No, never. The receiver doesn't have to pay the "gift tax" but I am fairly certain that money that the poster is talking about in this case will be considered income and therefore subject to normal income tax rates. Edit: I may be wrong, but I thought this was the way it worked. Google isn't helping, as I don't trust yahoo answers at all.
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Aug 2, 2011 19:13
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quote:The receiver doesn't have to pay the "gift tax" but I am fairly certain that money that the poster is talking about in this case will be considered income and therefore subject to normal income tax rates. It would not be considered taxable income and would not be subject to normal income tax rates. It has to be a true gift though. Employers cannot give a gift to an employee, for example. The Wormy Guy has absolutely no tax obligations from accepting a gift from his inlaws. His inlaws MAY have a gift tax filing requirement (emphasis on "tax filing", not "tax liability"), but that's it.
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Aug 2, 2011 19:17
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sheri posted:The receiver doesn't have to pay the "gift tax" but I am fairly certain that money that the poster is talking about in this case will be considered income and therefore subject to normal income tax rates. From the mouth of the IRS: TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART III > § 102 § 102. Gifts and inheritances (a) General rule Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance. There are some exceptions but they do not apply.
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Aug 2, 2011 19:18
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flyboi posted:my dad gave me money towards a car. we just did 12k in December and the rest the following year. flyboi posted:he's a cheap rear end What the gently caress? You owe your dad an apology right loving now.
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Aug 2, 2011 19:35
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We have an excellent Tax thread that could help with any more questions. http://forums.somethingawful.com/showthread.php?threadid=3394641
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Aug 2, 2011 19:45
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LloydDobler posted:What the gently caress? You owe your dad an apology right loving now. Not really, he knows he is. It's not like that's a terrible thing and I'm ungrateful for him giving me the rest of the money that was required from the divorce settlement from my mother 10 years after he was supposed to pay it. We're friends he's just sheisty when it comes to money.
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Aug 2, 2011 19:54
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gvibes posted:In practice, I think that you can do four times the annual limit, by splitting into four gifts: Wow lots of talk about the gift portion of my post. ^^^^ This guy has it right. Each of her parents can give each of us a certain amount of money, thus increasing how much we can receive (I think it was around the 13k limit per transaction). I got this information directly from the loan officer. And no we won't be paying taxes on the gift from what she told us as well.
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Aug 3, 2011 00:16
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The Wormy Guy posted:Wow lots of talk about the gift portion of my post. ^^^^ This guy has it right. Each of her parents can give each of us a certain amount of money, thus increasing how much we can receive (I think it was around the 13k limit per transaction). I got this information directly from the loan officer. And no we won't be paying taxes on the gift from what she told us as well. The 13k limit is totally irrelevant except for reporting purposes. Nobody will pay taxes unless your parents are giving you millions of dollars. If your loan officer made you split it up and they're not giving you millions of dollars the loan officer is wrong too. How much clearer can this get?
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Aug 3, 2011 01:34
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Man... My girlfriend and I have been approved through a lender to buy a house, and the deal is done.. docs are all ready to go from underwriters to the title company except for one small detail. Our original lender, Chase, refuses to transfer the appraisal and proof of AIR (Appraisal Independence Requirements) compliance to our new lender. AIR is a law that basically forbids lenders and appraisers from scheming to inflate home values. Our new lender has already viewed the copy of the appraisal I received from Chase and is satisfied with the appraisal and valuation, but they insist upon receiving a copy of the appraisal directly from Chase along with an AIR "Certificate of Compliance". Example certificate: http://www.elliemae.com/hvcc/Certificate%20of%20Compliance.pdf HUD posted:AIR allows Lender B to originate a loan using an appraisal transferred by Lender A if Lender B determines that the appraisal with written assurances that the appraisal was obtained in a manner consistent with AIR, conforms to Lender B's requirements for appraisals and is otherwise acceptable. Will Freddie Mac hold Lender B liable for remedies if it is discovered after the transfer that Lender A did not obtain the appraisal in a manner consistent with AIR? Our new lender is asking for something quite reasonable, in my opinion: they want Chase to vouch for the integrity of the appraisal. I can't imagine why Chase would refuse, for any reason other than: 1) They did something shady. 2) They're dicks. Chase dicked around with our loan for two months before rejecting it. This new lender approved and took us this close to closing in two weeks. I can't believe Chase is doing this.. it's almost like they're a cartoon villain twiddling their mustache and trying to find any way they can to derail our home purchase. I doubt there are any experts here on this minutiae, but on the off chance there's someone knowledgeable reading, I'm all ears. Thanks.
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Aug 3, 2011 12:32
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Bought my house about 2 months ago. It's been a dream and as good as it could get until last night... Somehow an entire large tree uprooted itself and fell onto mine/my neighbors cinder block fence. No real damage but it just turned my day of relaxing and getting ready for my vacation into a day of chain sawing this fucker. not going to say do never buy but definitely know what you're getting into!
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Aug 3, 2011 21:01
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MrBuddyLee posted:Our original lender, Chase, refuses to transfer the appraisal and proof of AIR (Appraisal Independence Requirements) compliance to our new lender. AIR is a law that basically forbids lenders and appraisers from scheming to inflate home values. I don't know Chase's specific guidelines, but for the bank I work for we will transfer appraisals ordered through us to other lenders for a fee (which is generally waived when we have declined the loan for whatever reason). Have they just flat out refused to transfer it under any circumstances? Were you going through Chase directly or through a broker of some sort? If you went through a broker they might at least be able to get you an explanation of Chase's policies on this, Chase should have written guidelines for accepting and transferring appraisals from other lenders. Or Chase may just not do it at all (if so, see your bullet point 2). Captain Windex fucked around with this message at 07:44 on Aug 4, 2011 |
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Aug 4, 2011 03:44
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My sister is in the process of buying a house and has requested a loan from me which I am happy to provide. What we're unsure of is how private financing works. When she makes an offer, will she put, "Subject to private financing" and then I transfer the money to her when accepted? Or do I transfer it direct to escrow? Has anyone ever done private financing? I'm having my CPA take care of things on MY end to make sure everything is kosher, I'm just not sure how it works elsewhere.
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Aug 4, 2011 20:24
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Socratic Moron posted:My sister is in the process of buying a house and has requested a loan from me which I am happy to provide. What we're unsure of is how private financing works. When she makes an offer, will she put, "Subject to private financing" and then I transfer the money to her when accepted? Or do I transfer it direct to escrow? Typically done through a promissory note. Your sister should know that it will be counted in her debt/income ratios.
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Aug 4, 2011 20:28
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TraderStav posted:Typically done through a promissory note. Your sister should know that it will be counted in her debt/income ratios.
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Aug 4, 2011 21:03
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Captain Windex posted:I don't know Chase's specific guidelines, but for the bank I work for we will transfer appraisals ordered through us to other lenders for a fee (which is generally waived when we have declined the loan for whatever reason). Have they just flat out refused to transfer it under any circumstances? Were you going through Chase directly or through a broker of some sort? If you went through a broker they might at least be able to get you an explanation of Chase's policies on this, Chase should have written guidelines for accepting and transferring appraisals from other lenders. Or Chase may just not do it at all (if so, see your bullet point 2). I cold called Chase yesterday until I got a response--I finally got a Vice President willing to "help", and she told us they'd email us a copy of the appraisal yesterday by end of day. It didn't arrive. Today, they're not returning our calls or emails. DO NEVER BUY (through Chase)!
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Aug 4, 2011 21:11
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Socratic Moron posted:Can you elaborate on this please? Thank you! I'll point you to the ehow writeup on it here http://www.ehow.com/how_5040652_create-promissory.html It's just a legal document that formalizes the loan arrangement. In regards to the debt/income portion, the mortgage company must have a complete financial picture of your sisters situation and an under-the-table loan should still be disclosed to them. In fact, I believe it's a felony to not report it. There is no penalty for her to have the loan with you, just that it will be calculated in to her obligations.
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Aug 4, 2011 21:27
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TraderStav posted:In regards to the debt/income portion, the mortgage company must have a complete financial picture of your sisters situation and an under-the-table loan should still be disclosed to them. In fact, I believe it's a felony to not report it. There is no penalty for her to have the loan with you, just that it will be calculated in to her obligations. If the house she is buying is $250,000 and I provide her $200,000 and she provides the other $50,000, do we have to deal with any of what you alluded to?
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Aug 5, 2011 03:27
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Socratic Moron posted:Thank you for elaborating. Is this a cash deal? If so, then no one really cares where the money comes from. If she is borrowing the $50k from the bank, she will need to qualify for the 50k loan and include the repayment of the 200k to you as part of her debt obligations. If she has low income, it could be an issue. Best to pick up the phone and chat with a mortgage broker.
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Aug 5, 2011 03:33
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TraderStav posted:Is this a cash deal?
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Aug 5, 2011 04:41
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DO NEVER... get a mortgage and need to default on. Today I received a notice of a sheriffs sale... via an advertisement from a law firm who want me to file bankruptcy to save my home. I have received no formal notice of sheriffs sale. My last payment was September 30th 2010, and there is a sheriffs sale August 31, 2011. I guess I can take the house off the market and consider a deed-in-lieu out of the question.
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Aug 5, 2011 06:12
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