Need Advice

[rent4now]

[quote=XBoxBoy]

Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.[/quote]

Really good points. $$ can really ruin relationships!

As far as the tax base you are talking about…
Can you fill me in on that? I think what you are saying is there is a way to pay taxes based off what my in-laws pay instead of the higher rate I would be paying as if I was any random buyer?

[Diego Mamani]

[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.

If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.

Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.

I’m also assuming that you have excellent relations with your in-laws.

[Diego Mamani]

[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.

If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.

Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.

I’m also assuming that you have excellent relations with your in-laws.

[Diego Mamani]

[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.

If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.

Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.

I’m also assuming that you have excellent relations with your in-laws.

[Diego Mamani]

[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.

If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.

Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.

I’m also assuming that you have excellent relations with your in-laws.

[Diego Mamani]

[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.

If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.

Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.

I’m also assuming that you have excellent relations with your in-laws.

[Diego Mamani]

[quote=XBoxBoy]I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.[/quote]
These are excellent points. Of course, only the OP can decide whether this is likely to be an issue in his particular situation. I’d say, if all the documents have been drafted properly, and the loan is not callable, you are generally immune from family interference: as long as you pay your P&I on time every month, you don’t have to allow anyone’s involvement in your own affairs.

[Diego Mamani]

[quote=XBoxBoy]I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.[/quote]
These are excellent points. Of course, only the OP can decide whether this is likely to be an issue in his particular situation. I’d say, if all the documents have been drafted properly, and the loan is not callable, you are generally immune from family interference: as long as you pay your P&I on time every month, you don’t have to allow anyone’s involvement in your own affairs.

[Diego Mamani]

[quote=XBoxBoy]I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.[/quote]
These are excellent points. Of course, only the OP can decide whether this is likely to be an issue in his particular situation. I’d say, if all the documents have been drafted properly, and the loan is not callable, you are generally immune from family interference: as long as you pay your P&I on time every month, you don’t have to allow anyone’s involvement in your own affairs.

[Diego Mamani]

[quote=XBoxBoy]I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.[/quote]
These are excellent points. Of course, only the OP can decide whether this is likely to be an issue in his particular situation. I’d say, if all the documents have been drafted properly, and the loan is not callable, you are generally immune from family interference: as long as you pay your P&I on time every month, you don’t have to allow anyone’s involvement in your own affairs.

[Diego Mamani]

[quote=XBoxBoy]I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.[/quote]
These are excellent points. Of course, only the OP can decide whether this is likely to be an issue in his particular situation. I’d say, if all the documents have been drafted properly, and the loan is not callable, you are generally immune from family interference: as long as you pay your P&I on time every month, you don’t have to allow anyone’s involvement in your own affairs.

[Coronita]

Slight hijack…. I have a hypothetical situation I’d like some knowledgeable folks to chime in on…

Consider this… ..Suppose you’re inlaws decides to write you and your spouse for the full purchase price of the loan plus per fair/market rates on the loan…..However, the terms of the loan are you only need to make interest payments, but have one huge lump sum payment consisting of the entire principal say 50 years from now….

Consider also that your spouse is the beneficiary of his/her parent’s estate (in some shape or form…Suppose your inlaws pass away in some distant future and for argument purposes let’s say this loan ends up in their estate and you and said spouse are beneficiaries of that part of the estate…IE the specfics of the willing/trust etc say you and your spouse inherit the loan on that property….

a)Does this pose an interesting situation? (IE you owe said inlaws for the loan, but at the same time you now inherited the loan)?

b)Consider the other situation in that you and spouse refuse to pay the lump sum payment back to the estate, for which you inherit anyway… Normally, the creditor would initiate foreclosure, right? But how do you foreclose on yourself? Is there a way you (as the beneficiary of the estate) could just chalk up the unpaid loan as a non-performing/asset(IE loss)?

[Coronita]

Slight hijack…. I have a hypothetical situation I’d like some knowledgeable folks to chime in on…

Consider this… ..Suppose you’re inlaws decides to write you and your spouse for the full purchase price of the loan plus per fair/market rates on the loan…..However, the terms of the loan are you only need to make interest payments, but have one huge lump sum payment consisting of the entire principal say 50 years from now….

Consider also that your spouse is the beneficiary of his/her parent’s estate (in some shape or form…Suppose your inlaws pass away in some distant future and for argument purposes let’s say this loan ends up in their estate and you and said spouse are beneficiaries of that part of the estate…IE the specfics of the willing/trust etc say you and your spouse inherit the loan on that property….

a)Does this pose an interesting situation? (IE you owe said inlaws for the loan, but at the same time you now inherited the loan)?

b)Consider the other situation in that you and spouse refuse to pay the lump sum payment back to the estate, for which you inherit anyway… Normally, the creditor would initiate foreclosure, right? But how do you foreclose on yourself? Is there a way you (as the beneficiary of the estate) could just chalk up the unpaid loan as a non-performing/asset(IE loss)?

[Coronita]

Slight hijack…. I have a hypothetical situation I’d like some knowledgeable folks to chime in on…

Consider this… ..Suppose you’re inlaws decides to write you and your spouse for the full purchase price of the loan plus per fair/market rates on the loan…..However, the terms of the loan are you only need to make interest payments, but have one huge lump sum payment consisting of the entire principal say 50 years from now….

Consider also that your spouse is the beneficiary of his/her parent’s estate (in some shape or form…Suppose your inlaws pass away in some distant future and for argument purposes let’s say this loan ends up in their estate and you and said spouse are beneficiaries of that part of the estate…IE the specfics of the willing/trust etc say you and your spouse inherit the loan on that property….

a)Does this pose an interesting situation? (IE you owe said inlaws for the loan, but at the same time you now inherited the loan)?

b)Consider the other situation in that you and spouse refuse to pay the lump sum payment back to the estate, for which you inherit anyway… Normally, the creditor would initiate foreclosure, right? But how do you foreclose on yourself? Is there a way you (as the beneficiary of the estate) could just chalk up the unpaid loan as a non-performing/asset(IE loss)?

[Coronita]

Slight hijack…. I have a hypothetical situation I’d like some knowledgeable folks to chime in on…

Consider this… ..Suppose you’re inlaws decides to write you and your spouse for the full purchase price of the loan plus per fair/market rates on the loan…..However, the terms of the loan are you only need to make interest payments, but have one huge lump sum payment consisting of the entire principal say 50 years from now….

Consider also that your spouse is the beneficiary of his/her parent’s estate (in some shape or form…Suppose your inlaws pass away in some distant future and for argument purposes let’s say this loan ends up in their estate and you and said spouse are beneficiaries of that part of the estate…IE the specfics of the willing/trust etc say you and your spouse inherit the loan on that property….

a)Does this pose an interesting situation? (IE you owe said inlaws for the loan, but at the same time you now inherited the loan)?

b)Consider the other situation in that you and spouse refuse to pay the lump sum payment back to the estate, for which you inherit anyway… Normally, the creditor would initiate foreclosure, right? But how do you foreclose on yourself? Is there a way you (as the beneficiary of the estate) could just chalk up the unpaid loan as a non-performing/asset(IE loss)?

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