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#1
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Where to get mortgage forms
This is a little OT, but I am going to take over the mortgage on my
son-in-law and daughters house as I can get more interest from them than on a cd and they will get a lower rate from me than they can get at a bank. (5%). What is a good, cheap way to get the mortgage forms, and what are the different pieces of paper called. It has been a long time since my wife and I had a mortgage and I am rusty on all the various names. TIA Bob Hofmann |
#2
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Where to get mortgage forms
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#3
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Where to get mortgage forms
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#4
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Where to get mortgage forms
wrote:
This is a little OT, but I am going to take over the mortgage on my son-in-law and daughters house as I can get more interest from them than on a cd and they will get a lower rate from me than they can get at a bank. (5%). What is a good, cheap way to get the mortgage forms, and what are the different pieces of paper called. It has been a long time since my wife and I had a mortgage and I am rusty on all the various names. TIA Bob Hofmann This is a risky proposition! You have to consider what happens when your son-in-law/daughter can't pay. Do you let it slide? Create a fuss, awkward situation, or family resentment? A CD is insured, what you are proposing is not! If you want a fairly safe investment in real-estate, then consider an AAA-rated GNMA fund and backed by the US government. If you still want to float your daughter a loan, get a real-estate lawyer to draw up the paperwork, and maybe we can watch y'all on Judge Judy! |
#5
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Where to get mortgage forms
In article ,
Phisherman wrote: wrote: This is a little OT, but I am going to take over the mortgage on my son-in-law and daughters house as I can get more interest from them than on a cd and they will get a lower rate from me than they can get at a bank. (5%). What is a good, cheap way to get the mortgage forms, and what are the different pieces of paper called. It has been a long time since my wife and I had a mortgage and I am rusty on all the various names. TIA Bob Hofmann This is a risky proposition! You have to consider what happens when your son-in-law/daughter can't pay. Do you let it slide? Create a fuss, awkward situation, or family resentment? Also, if you give them a below market interest rate, there can be some rather nasty tax consequences. Personally I wouldn't touch this. |
#6
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Where to get mortgage forms
In article ,
Phisherman wrote: You have to consider what happens when your son-in-law/daughter can't pay. That's easy. He forecloses on them, and since they're now homeless, they move in with Dad. |
#7
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Where to get mortgage forms
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#9
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Where to get mortgage forms
JoeSpareBedroom wrote:
h wrote in message ... .... Plus, the son cannot take any mortgage tax deductions, since it won't be a mortgage, just a loan. .... I'm not so sure about that. What makes a loan a mortgage? What it's used for, or who you get the loan from? ... What makes a loan a mortgage is what the collateral is. If the collateral is the property, its a mortgage. Mortgage interest on primary and/or secondary is deductible irregardless of the payee. But, it needs to be structured properly for this and other enumerated reasons and shouldn't even be considered w/o proper legal representation for each party... -- |
#10
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Where to get mortgage forms
On Mar 6, 9:29*am, dpb wrote:
JoeSpareBedroom wrote: h wrote in m... ... Plus, the son cannot take any mortgage tax deductions, since it won't be a mortgage, just a loan. ... I'm not so sure about that. What makes a loan a mortgage? What it's used for, or who you get the loan from? ... What makes a loan a mortgage is what the collateral is. *If the collateral is the property, its a mortgage. *Mortgage interest on primary and/or secondary is deductible irregardless of the payee. But, it needs to be structured properly for this and other enumerated reasons and shouldn't even be considered w/o proper legal representation for each party... -- I am going to have a regular mortgage on the property, the land and the house are the collateral for the oan, just like as if I were a bank. I will have to issue a 1098 form to them for the interest paid each year just like a bank does, and I will have to declare the interest they pay me as interest received just like I do for interest received on a CD. Thanks for all the warnings, I didn't get to the position of giving them a mortgage without having some $$$$ smarts. |
#11
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Where to get mortgage forms
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#12
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Where to get mortgage forms
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#13
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Where to get mortgage forms
On Thu, 06 Mar 2008 19:07:24 GMT, PaPaPeng wrote:
Or heck. Why don't you pay off the mortgage to buy over the house. You have clear title. Rent it back to you daughter for the same amount as a bank loan repayment with interest. Have an agreement whereby should they want to buy back the house their rent payments will offset the sale price less whatever interest amount agreed on. An accountant will be needed to figure out the details. You can use the bank loan figures as a guide. Right. When he pays off the mortgage they can execute a Quitclaim deed and record that and the OP has Title. Draw up a Lease purchase contract with details. Pops is now the bank! |
#14
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Where to get mortgage forms
The question is better suited to misc.legal or misc.legal.moderated,
but I'll answer it here. I have a private mortgage. The term "Seller financing" on a house for sale means the seller will consider giving the buyer a private mortgage. It can be a good deal for both parties. You need 2 forms, Mortgage (aka Security Deed) and Promissory Note. Using FannieMae / Freddie Mac Uniform Instrument (so called FNMA) versions of these will make it easy for all parties; a uniform mortgage is, well, uniform. You can get the forms an old-fashioned stationery store, the kind that sells forms! Or online: there are many sources. I got my forms (FNMA) online from uslegalforms.com . A mortgage is a mortgage is a mortgage, for legal and tax purposes. 5% is well within bounds of market rate and thus does not qualify as a gift. Una |
#15
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Where to get mortgage forms
On Mar 6, 6:23*pm, (Una) wrote:
The question is better suited to misc.legal or misc.legal.moderated, but I'll answer it here. *I have a private mortgage. *The term "Seller financing" on a house for sale means the seller will consider giving the buyer a private mortgage. *It can be a good deal for both parties. You need 2 forms, Mortgage (aka Security Deed) and Promissory Note. Using FannieMae / Freddie Mac Uniform Instrument (so called FNMA) versions of these will make it easy for all parties; *a uniform mortgage is, well, uniform. *You can get the forms an old-fashioned stationery store, the kind that sells forms! *Or online: *there are many sources. *I got my forms (FNMA) online from uslegalforms.com . A mortgage is a mortgage is a mortgage, for legal and tax purposes. 5% is well within bounds of market rate and thus does not qualify as a gift. * * * * Una Thank you Una!!! You are the only person who responded correctly with the names of Promissory Note and Mortgage. I posted my original question after finishing doing the income taxes for an individual who runs a home business, owns three homes, and also works outside of the home and a second semi-retired couple who have a large variety of investments and some weird expenses. I was hoping for someone to say promissory note and mortgage, which is what I thought, but didn't want to prejudice any responses. To everyone else, thanks for taking the trouble to respond, I am well aware of the pitfalls and there will be language used to make it clear what happens in case of default, death on the part of any of the signatories,etc. I have the forms and am now tailoring them to our particular circumstances. H. R.(Bob) Hofmann |
#16
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Where to get mortgage forms
On Thu, 06 Mar 2008 06:28:07 -0800, Smitty Two
wrote: In article , Phisherman wrote: You have to consider what happens when your son-in-law/daughter can't pay. That's easy. He forecloses on them, and since they're now homeless, they move in with Dad. Can't they stay in that other house that Dad owns now? |
#17
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Where to get mortgage forms
In article ,
mm wrote: On Thu, 06 Mar 2008 06:28:07 -0800, Smitty Two wrote: In article , Phisherman wrote: You have to consider what happens when your son-in-law/daughter can't pay. That's easy. He forecloses on them, and since they're now homeless, they move in with Dad. Can't they stay in that other house that Dad owns now? Nah, that's going on the auction block at the courthouse steps. |
#18
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Where to get mortgage forms
On Mar 6, 10:10*pm, "hr(bob) "
wrote: On Mar 6, 6:23*pm, (Una) wrote: The question is better suited to misc.legal or misc.legal.moderated, but I'll answer it here. *I have a private mortgage. *The term "Seller financing" on a house for sale means the seller will consider giving the buyer a private mortgage. *It can be a good deal for both parties. You need 2 forms, Mortgage (aka Security Deed) and Promissory Note. Using FannieMae / Freddie Mac Uniform Instrument (so called FNMA) versions of these will make it easy for all parties; *a uniform mortgage is, well, uniform. *You can get the forms an old-fashioned stationery store, the kind that sells forms! *Or online: *there are many sources. *I got my forms (FNMA) online from uslegalforms.com . A mortgage is a mortgage is a mortgage, for legal and tax purposes. 5% is well within bounds of market rate and thus does not qualify as a gift. * * * * Una Thank you Una!!! You are the only person who responded correctly with the names of Promissory Note and Mortgage. *I posted my original question after finishing doing the income taxes for an individual who runs a home business, owns three homes, and also works outside of the home and a second semi-retired couple who have a large variety of investments and some weird expenses. I was hoping for someone to say promissory note and mortgage, which is what I thought, but didn't want to prejudice any responses. To everyone else, thanks for taking the trouble to respond, I am well aware of the pitfalls and there will be language used to make it clear what happens in case of default, death on the part of any of the signatories,etc. *I have the forms and am now tailoring them to our particular circumstances. H. R.(Bob) Hofmann- Hide quoted text - - Show quoted text - Your much too kind Bob. Many of the answers here were completely incorrect. Starting with the claim that a private party can't issue a mortgage to another private party. Or suggesting transfering title. Or adding you as a co-signer on the loan, etc. None of those does what you want to do, which is replace the current mortgage on your daughter/SIL's house with one you give them. Certainly you can do it and have it recorded properly. I would suggest that if the interest rate is going to be any significant amount lower than the prevailing market rate that you check with a tax advisor. The post suggesting possible IRS issues with below market loans is correct. As far as the forms, personally, I'd contact a couple lawyers and ask what their flat fee would be to do this for you. Should only cost a couple hundred bucks and for me it would be worth it to have it done right. Alternatively, if you check at the local hall of records, they can probably point you to the forms/ procedures for recording the new mortgage. Of course, as others have pointed out, doing this could someday get messy if their situation changes and they miss payments, get divorced, etc. As long as you understand the potential problems, there is no reason you can't do what you want to do. It's done all the time. |
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