Monthly Archives: February 2009
Buy Home Or Receive As Gift: Tax Implications
What is the best way to give your home to another family member without incurring a large tax? Ilyce warns against transferring a house into another family’s name because of gift tax implications. Instead the family member could buy the home from you, while you become the lender, loaning 100% of the money. This way you can avoid the gift tax, and pay a mortgage payment every month instead of rent.
Personal Finance Information Disclosed To Real Estate Agent: What’s Required?
What kind of personal and finance information is a seller required to disclose to their real estate agent? A seller wants to file a complaint about a real estate agent who has not been returning her calls. The seller says she did not tell the real estate agent that she was getting a divorce, but Ilyce says the agent works in the best interest of the seller, and personal information about getting a divorce should not matter. Ilyce suggests filing a complaint with the local real estate commission and with the Better Business Bureau.
Joint Tenants: Owning Primary Residence With Others
Deciding to own property with another family can be stressful, because of credit and finance implications if one family doesn’t make mortgage payments. Ilyce suggests buying in a multi-family building, or buying as joint tenants or tenants in common, or having a real estate attorney help subdivide the property and turn it into a condominium. The most important thing when owning property with friends is to protect yourselves and make sure whether you’re joint tenants, co-owners of a building that’s turned into a condo, your finances won’t be compromised.
Credit Report: Rebuilding Good Credit After Bankruptcy
It is possible to rebuild your credit after bankruptcy. But, once your bankruptcy is discharged, you must continue paying back your loans on time, in order to rebuild your credit and improve your credit report. One bankruptcy is discharged, it’s easy to slip back into old habits instead of rebuilding credit and improving your credit report.
Former Home Owner Still Responsible For Gift Home’s Mortgage
If you give your home as a gift to relatives without checking to see if the mortgage loan is assumable, as the former homeowner, you are still responsible for the mortgage. The situation is worse if mortgage is still in your name but the deed is in the name of your relatives. As the former home owner, you are responsible for all the mortgage payments, and need to either refinance the mortgage in your relatives’ names, or transfer ownership back to yourself.
Credit Report Errors Hinder Mortgage Loan
Errors on your credit report can hinder your chances of getting a mortgage loan approved. Credit report errors take a long time to fix, but should be fixed immediately. But if you are married and getting the mortgage loan as a couple, you can get the mortgage in one partner’s name while your credit report errors are fixed.
Landlord Selling Investment Property To Renters
If you are a landlord, there are issues you may have to deal with if you sell investment property to renters. As a landlord, you should keep the mortgage lenders involved in the process because the lender may want to call the loan. In fact, the mortgage lender most likely has the right to call the loan if you, as a landlord, sell investment property to your renters.
Late Credit Card Payments Means Bad Credit Report
Making a late credit card payment just once can ruin your credit. Credit card companies are afraid that you can’t pay and your interest rates will jump, if you make even one late credit card payment. Just one late credit card payment can take up to a year to correct and have your credit score returned to where it was before the late payment.
Credit Report Collection Agency Claim – Pay Or Fight?
What are your options If you get a credit report and find that an old insurance agency sent your account to a collections agency for an old policy? Ilyce suggests checking to see if it’s false debt by calling the collection agency and demanding to see a copy of the old bill and whether the credit report is wrong. Ilyce also suggests since the bill is small, it might be worth paying the collection agency to get the bill off your credit report and improve your credit score.
1031 Exchange Helps Rental Property Owner Buy In Another State
Should you as a rental property owner who lives in California keep the building you own on the East Coast or do a 1031 exchange and buy a building in California. Ilyce explains the pitfalls of not being in the same state as the rental property you own, and suggests the 1031 exchange. The 1031 exchange will help you buy rental property nearby where you can keep an eye on your tenants.
