OT: Money gift from parents for downpayment

[Coronita]

i.c.

I learned something new today…Thanks SDR,sdr, Outto, and FSD

[sdrealtor]

Agree I may have been a bit harsh on the seasoning part, my apologies SD R. Its probably a good idea but not necessary. In the situation I recently was involved in the gift was close to 6 figures.

The part that really set me off was the adding of gifter. I have run into a few clients that had to do short sales with parents on the loan. In one case, the daughter was very underwater and had to walk. The parents (2 prominent Bay Area attorneys are taking a big hit for this). I got my car detailed last week and the detailer is underwater after his property went down by more than 50% in Oceanside. His Mother in Law is on the loan and needs her credit to move in another year or two so they cant walk or do a short sale. They are stuck in small 1BR condo with a baby worth about $125K and they paid about $300K. There are tons of other reasons not related to distress as to why this is bad idea (i.e. legal, estate, tax etc.) and should be avoided if possible.

[sdrealtor]

Agree I may have been a bit harsh on the seasoning part, my apologies SD R. Its probably a good idea but not necessary. In the situation I recently was involved in the gift was close to 6 figures.

The part that really set me off was the adding of gifter. I have run into a few clients that had to do short sales with parents on the loan. In one case, the daughter was very underwater and had to walk. The parents (2 prominent Bay Area attorneys are taking a big hit for this). I got my car detailed last week and the detailer is underwater after his property went down by more than 50% in Oceanside. His Mother in Law is on the loan and needs her credit to move in another year or two so they cant walk or do a short sale. They are stuck in small 1BR condo with a baby worth about $125K and they paid about $300K. There are tons of other reasons not related to distress as to why this is bad idea (i.e. legal, estate, tax etc.) and should be avoided if possible.

[sdrealtor]

Agree I may have been a bit harsh on the seasoning part, my apologies SD R. Its probably a good idea but not necessary. In the situation I recently was involved in the gift was close to 6 figures.

The part that really set me off was the adding of gifter. I have run into a few clients that had to do short sales with parents on the loan. In one case, the daughter was very underwater and had to walk. The parents (2 prominent Bay Area attorneys are taking a big hit for this). I got my car detailed last week and the detailer is underwater after his property went down by more than 50% in Oceanside. His Mother in Law is on the loan and needs her credit to move in another year or two so they cant walk or do a short sale. They are stuck in small 1BR condo with a baby worth about $125K and they paid about $300K. There are tons of other reasons not related to distress as to why this is bad idea (i.e. legal, estate, tax etc.) and should be avoided if possible.

[sdrealtor]

Agree I may have been a bit harsh on the seasoning part, my apologies SD R. Its probably a good idea but not necessary. In the situation I recently was involved in the gift was close to 6 figures.

The part that really set me off was the adding of gifter. I have run into a few clients that had to do short sales with parents on the loan. In one case, the daughter was very underwater and had to walk. The parents (2 prominent Bay Area attorneys are taking a big hit for this). I got my car detailed last week and the detailer is underwater after his property went down by more than 50% in Oceanside. His Mother in Law is on the loan and needs her credit to move in another year or two so they cant walk or do a short sale. They are stuck in small 1BR condo with a baby worth about $125K and they paid about $300K. There are tons of other reasons not related to distress as to why this is bad idea (i.e. legal, estate, tax etc.) and should be avoided if possible.

[sdrealtor]

Agree I may have been a bit harsh on the seasoning part, my apologies SD R. Its probably a good idea but not necessary. In the situation I recently was involved in the gift was close to 6 figures.

The part that really set me off was the adding of gifter. I have run into a few clients that had to do short sales with parents on the loan. In one case, the daughter was very underwater and had to walk. The parents (2 prominent Bay Area attorneys are taking a big hit for this). I got my car detailed last week and the detailer is underwater after his property went down by more than 50% in Oceanside. His Mother in Law is on the loan and needs her credit to move in another year or two so they cant walk or do a short sale. They are stuck in small 1BR condo with a baby worth about $125K and they paid about $300K. There are tons of other reasons not related to distress as to why this is bad idea (i.e. legal, estate, tax etc.) and should be avoided if possible.

[SD Realtor]

In my personal case I am very risk averse and would never add anyone else to title or loan on my own house. If you reread what I wrote, I said it was an “option”, nothing more and nothing less. In general adding other people to title exposes them to all the risk that you have as a homeowner whether there will be problems with short sales like you mentioned, or even worse, litigation involving the home, accident, catastrophe, etc…Similarly the problems of the gifter also become your problem, so if your mother in law loses her ass in vegas and loses the home, you are screwed!

However it is an “option” and that is what I presented. I have seen cases where parents did go on title with the kids. It was their choice, not one I would have made but they did it.

[SD Realtor]

In my personal case I am very risk averse and would never add anyone else to title or loan on my own house. If you reread what I wrote, I said it was an “option”, nothing more and nothing less. In general adding other people to title exposes them to all the risk that you have as a homeowner whether there will be problems with short sales like you mentioned, or even worse, litigation involving the home, accident, catastrophe, etc…Similarly the problems of the gifter also become your problem, so if your mother in law loses her ass in vegas and loses the home, you are screwed!

However it is an “option” and that is what I presented. I have seen cases where parents did go on title with the kids. It was their choice, not one I would have made but they did it.

[SD Realtor]

In my personal case I am very risk averse and would never add anyone else to title or loan on my own house. If you reread what I wrote, I said it was an “option”, nothing more and nothing less. In general adding other people to title exposes them to all the risk that you have as a homeowner whether there will be problems with short sales like you mentioned, or even worse, litigation involving the home, accident, catastrophe, etc…Similarly the problems of the gifter also become your problem, so if your mother in law loses her ass in vegas and loses the home, you are screwed!

However it is an “option” and that is what I presented. I have seen cases where parents did go on title with the kids. It was their choice, not one I would have made but they did it.

[SD Realtor]

In my personal case I am very risk averse and would never add anyone else to title or loan on my own house. If you reread what I wrote, I said it was an “option”, nothing more and nothing less. In general adding other people to title exposes them to all the risk that you have as a homeowner whether there will be problems with short sales like you mentioned, or even worse, litigation involving the home, accident, catastrophe, etc…Similarly the problems of the gifter also become your problem, so if your mother in law loses her ass in vegas and loses the home, you are screwed!

However it is an “option” and that is what I presented. I have seen cases where parents did go on title with the kids. It was their choice, not one I would have made but they did it.

[SD Realtor]

In my personal case I am very risk averse and would never add anyone else to title or loan on my own house. If you reread what I wrote, I said it was an “option”, nothing more and nothing less. In general adding other people to title exposes them to all the risk that you have as a homeowner whether there will be problems with short sales like you mentioned, or even worse, litigation involving the home, accident, catastrophe, etc…Similarly the problems of the gifter also become your problem, so if your mother in law loses her ass in vegas and loses the home, you are screwed!

However it is an “option” and that is what I presented. I have seen cases where parents did go on title with the kids. It was their choice, not one I would have made but they did it.

[AK]

Just as important as seasoning funds is the question of where you’ve seasoned them. If you’ve parked your gift funds in a brokerage account … even in cash or cash equivalent … I’d suggest moving them into a savings or checking account well before your expected closing date. Thicker-headed lenders seem to assume that anything in a brokerage account needs to be “liquidated” even if it’s already liquid, and you’ll need to show a bank statement to prove the funds are available for transfer.

[AK]

Just as important as seasoning funds is the question of where you’ve seasoned them. If you’ve parked your gift funds in a brokerage account … even in cash or cash equivalent … I’d suggest moving them into a savings or checking account well before your expected closing date. Thicker-headed lenders seem to assume that anything in a brokerage account needs to be “liquidated” even if it’s already liquid, and you’ll need to show a bank statement to prove the funds are available for transfer.

[AK]

Just as important as seasoning funds is the question of where you’ve seasoned them. If you’ve parked your gift funds in a brokerage account … even in cash or cash equivalent … I’d suggest moving them into a savings or checking account well before your expected closing date. Thicker-headed lenders seem to assume that anything in a brokerage account needs to be “liquidated” even if it’s already liquid, and you’ll need to show a bank statement to prove the funds are available for transfer.

[AK]

Just as important as seasoning funds is the question of where you’ve seasoned them. If you’ve parked your gift funds in a brokerage account … even in cash or cash equivalent … I’d suggest moving them into a savings or checking account well before your expected closing date. Thicker-headed lenders seem to assume that anything in a brokerage account needs to be “liquidated” even if it’s already liquid, and you’ll need to show a bank statement to prove the funds are available for transfer.

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