HELP!! Can selling your house to a family member and re-buy it later lower my house mortgage payment/ taxes?
Ok, so this lady who works with selling houses and such told us to "miss a few payments" so that the credit card company or what ever see's that we aren't making the payments. Then the plan entails to actually sell the house (which the people who sell homes do), which in this case is this lady. She said that in order to make it believable, they will have to "pretend" or play the role that we are selling the house. That means putting the sign up, letting people see the house and things of the like. She said she won't let people buy the house cause supposadly, she is the one who choses the buyer. (im guessing she is a mortgage consultant or real estate agent or something similar to that). The thing is, we sell the house to another family member. Although doing this may ruin the owners credit since they are missing tax or mortgage payments or what ever. My question is, will doing thing help lower the high tax % that my parents have from 7.35% to about maybe 5% fixed. My dad wants to take this action, but i want to find out a bit more because it sounds a bit fishy. The ending result is to eventually after a few years to trade the house from the family members name back to US. Sort of like re-buy the house back and put it under our name.
so a) will this help?
b) what are the benefits or downfalls of doing this?
Response is needed a.s.a.p!
by percentage, im refering to interest rates and all. taxes or what ever it is refering to in a house.
It's my parents decision, not mine.
and refining is already not an option because they said that we spent too much or something last year. and we tried the bank, but the bank I doubt will lower the payment for such a high debt. our house was purchased about 5 years ago.
Wow, this is a convoluted scam to get your money.
MAKE the payments, do not do what this woman is suggesting.
Yes. I'm answering your bold question but won't bother reading the meaningless details. You sell house, pay all the fees, buy it back at a lower price, pay more fees. Your new mortgage is based on purchase price. Property taxes based on new sales price. Good luck.by Gaytheist Buddha - 5 years ago
This is a scam. I answered one like this a couple days ago with the seller who decided not to sell now being harrassed and sued by the realtor who tricked them. Don't do this. THe seller agent get's 6-7% off the top, then another 6-7% later so don't do this to save 10-20,000. Also it's not easy or guaranteed and can hurt your credit. Finally you have to pay the write off back in higher taxes. So say you have 100,000 house worth in sale for 75,000, and you get a short sale. So that 25,000 difference you have to pay taxes on to IRS and state. Can be a big number.
Now the realtor gest a 2,100 commission at the closing of the 75,000 home. Then when you transfer it back the realtor gets paid by you another amount probably $2100 plus cosing costs and fees. By the time you're done it's just not worth it and a lot a real lot can go wrong.
The woman is running a scam. Fairly soon someone is going to catch on and report her. Do your parents want to risk being part of that mess?by hanora - 5 years ago
If you want to lower your taxes, go to the township/city or borough you live in and request a reassessment - usually a 1 page form.
If you want to lower your mortgage interest rate, refinance. Try to find a company that does not charge a huge fee (low closing costs like the E-loan ads) but I wouldn't go with Eloan. They charge higher interest.
But make sure you don't do the reselling thing if you absolutely don't have to. Be careful who you do business with, and know where they live. If they dont want to tell you, then something fishy is up.
Always good to know where people live because if they scam you, you can take the police right to them. ;-D