here is the scenario…. couple [A] buys a house for 0,000 but they couldnt afford that much so another couple-B [ family ] contributed toward the purchase,but will not live there….each couple contributed 5,000.. the title to the home lists each couple as owning 50% of the home..couple-A took out a home equity loan on their previous house + savings to come up with their 5,000… there previous house sold about 2 months later and the home equity loan was paid off at that time for the previous house that they occupied for several years…..now tax time is here and there is a question as to whether couple A qualifies for the homebuyers tax credit…there tax preparer says they do because they occupy the new house and the old house that they lived in for several years sold shortly after buying the new house,,so that there is no question about there actually occupying the new house…………..the question is this…..does couple A qualify fully for the homebuyers tax credit [ not 1st time credit of 00,,just the regular credit of 00 ] ?? or do they only qualify for 1/2 of that credit since they only own 1/2 of the new house??..or do they NOT qualify because of only owning 1/2 of the house??..the other question is this…..IF couple A does qualify fully for the 00 tax credit,,should couple A give 1/2 of that to couple B ??…couple B thinks they should get 1/2 of couple A’s 00 tax refund [ if it goes through],,,couple A isnt sure what the right thing to do is…..obviously couple B doesnt qualify for a tax credit on there own taxes because they will continue to live at their own house,,they will not be occupying the new house at all…….couple A likely will buy out couple B’s 1/2 of the new house in a few years for 1/2 of the appraised value at that time….couple B doesnt claim any legal right to the money,,they just think they should be given 1/2 of the 00 because they purchased 1/2 of the new house that couple A could not otherwise have afforded…any opinions???
Posts Tagged ‘money’
question about homebuyer's tax credit?
Monday, March 15th, 2010Can my home equity line lender force me to sell (or into foreclosure) if I own almost 70% of my home?
Friday, March 12th, 2010We are not in foreclosure but this bank has had trouble. I’m trying to understand our position should they demand full payment of the equity line.
Using 1 Home Equity to Pay for Another Home Equity?
Sunday, March 7th, 2010I currently own 2 properties; 1 is being rented and another one I live in. Both properties have equity of line of credit loans. I almost paid off the loan on the first one that is being rented; the APR on this one is fixed at 7.75%. The second property that I live in, I also have equity of line of credit at fixed rate 9.95% and the balance is 45K. My question is:
1) I almost paid off the first home equity, so should i pull out more equity from the frist one to pay for the second equity, since the APR on the first one is lower? I really want to refinance my mortgage on the second property that I live in, but cannot as the principle balance is more than the house is worth. I thought getting more money from first equity will help me pay down the second equity and save on money since the APR on the first equity is 7.75%.
2) Should I just close off the frist equity account as I pay if all off, and just try to pay the second equity as much as I can at 9.95% APR?
Any loan officers out there? What to refinance?
Sunday, February 28th, 2010I had a setback, lost my 20yr job to bankruptcy. I made a few good choices, and survived for 18mo, until I found a new ok job. meaning I now make more then my bills, instead of using part of my saving or adding debt to my credit cards to make ends meet. So now I make 30,000, and would like to take advantage of the interest rates. I have a 6.25%. and was told by at least 5 banks or loan companies I could get 4,75% I have over 20% equity, in my home. After I start the loan process, it always falls through. Either the interest rates goes up a 1-2 points, or they want me to put down an additional money. Sometimes it is for the loan process, which is above the usual 2,000-5,000 closing costs I was exspecting. Sometimes it is to increase the down payment.I have a 120,000 house even after the housing crash, and owe 92,000. I actually was going to put 10,000 down to help lower my payments even more. But that still is not enough. The loan never happens. I have a great credit score, and make more then enough to pay my bills. So why am I not getting these refinance loans?
Income to debt is very good. I have other proterty that now only pay for themselves. I uses to make a little income. But I have no other debt, or other loans out.
Can they come after my house if my boyfriend forecloses on his?
Saturday, February 27th, 2010I bought my house by myself I paid cash for it so theirs no money owing on it & like a dummy I got back together with my boyfriend & put his name on my property. He bought a house from a friend & took out a home equity loan for 50,000. & the city has been sending him fines to fix up the house which we have been the fines have gotten up to 69,000 because we dont have the money to pay. My question is can they put a lien on my house if he forcloses on his.
Whats the worst that can happen if I MAX out home equity line of credit and flee without repayment?
Friday, February 26th, 2010I have about 108,000 of credit in my house. What would happen if i just maxed out my line of credit, deposited the money in my account and let the bank have my house. What other type of legal penalties would i face? Can it be like a (technical) trade "i have the money you can have the house"?
What are the ins and outs of home equity loans?
Thursday, February 25th, 2010Here is what I’m interested in doing … have an eye on a great condo, list prices were around 0k a few years ago, but they are just building and did it right during a down turn in real estate in the area. As a result they dropped the asking price to about 5k. We got a good walk thru with a realitor and she said cash is king here and if they have a cash buyer she knows they’ll likely settle in around 0k just to move the first few units (they build them by the entrance and that was a bad choice!)
So … my credit isn’t going to help with a conventional loan since it can’t be an FHA loan since the project is only about 15% complete and apparently they must do conventional loans for until the project is further along (that’s what the told us, so it was limited to 1 bank) …
Now to the point, I have a relative who may have around that amount in liquid finances. Can they "lend" me the money to purchase the condo and in turn I would then take out an equity loan to repay them? It should appraise at well over 0k and all I would need to to is pay them back to be free and clear. I’m guessing we could even wait a little while to pay them back (build credit up higher?) but I’d like to do that sooner than later.
What are my limitations? Is credit going to bite me on an equity loan if I own outright? Any resources, tips, info would be appreciated!
reducing our tax liability – protecting that money and retire?
Monday, February 15th, 2010I’m in a tough position. My wife and I both work with a combined salary of roughly 0K a year. We are doing everyhing that we can think of to lower our tax basis. We fully contribute to our 401ks (maxed). Our home is fortunately (from an interest perspective) almost paid off, unfortunately little deduction is left due to minimal interest. We have no dependents to claim, or sock money away in tax deffered accounts for. We just started putting into IRAs for both of us (not for the deduction since it doesn’t apply, but for the tax deffered gains).
We have no debt, thus no need for a home equity loan. We are in the strange position of being very cash rich and on a great track to an early retirement but we are getting pummeled tax wise for it!
What can we do? There seems to be little if any option for people in our position. How can we "protect" our money further from the constant crunch of Uncle Sam?
Friends have said we should buy another house but I don’t see how creating additional debt (and paying more interest) helps us protect our money further or gets us to retirement any quicker. Plus I assume we would have to make that our primary home to even take the deduction and quite frankly we like where we live.
Help!!
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