Q: Are currently separating from my wife and wants her to buy our property, my parents have offered to pay off the mortgage, loan and my wife is 50% of the equity they have left the house and it may I rent it back for as long as I want. What is the cheapest way to the house and sell them to buy and there is no pitfalls that we can not think?
The house was being sold totally to my parents with me forgoing my share of the equity in return for debt free living.
Pitfalls to watch for are what happens if your parents need the money tied in your house, perhaps for long term care? If the house ever came to be sold they would have a capital gains tax liability. There is also a future inheritance tax problem in that their estate would include your home meaning paying possibly unnecessary tax. Most people try to transfer property down generations not up!
tags: loans, pitfalls
posted in mortgage by admin
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Sell and rent back is a solution that is possibly most frequently used by clients that are having major economic difficulties.
Link | August 25th, 2010 at 5:54 am