My new husband and I took over a house from a friend of ours.
We are in the process of putting in our name. He bought it in 2005. He didn't pay any taxes on it, so we have to pay them. So we're looking at a total of $6000 back taxes. And we also had to pay 3 months morgatge totaling $4000. I must admit the house is nice, but needs updating and tlc. we also have not so good credit. My friend doesn't want any money or anything to do with the house, he wants to sign it over to us, and we could sell it and keep the money or stay there forever he doesn't care.
2007-07-17 06:09:27 · 21 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
I personally do not think that you got ripped off because some people have to put down close to that amount and here your friend is basially giving you a house for $10,000. Consider yourself lucky and count your blessings. Also just have him Quit-Claim the house over to you untill your credit gets better so that you can get a good interest rate and take out a small loan to fix the house up.
2007-07-17 06:14:37 · answer #1 · answered by No. 2 Due 12/31/2008 4 · 0⤊ 0⤋
you have to look at the current mortgage balance vs fair market value for the house. So you are in a prime situation that many an investor seek out on a daily basis. Lets just say the story is this:
The house fair market value is 200k
The mortgage balance is 180k
you must pay 10k in total fees first to get it in your possession and probably more fees (slight) to get the property in your name...so you would in essence be paying 190k so you got a 10k discount and that is not too bad considering what you guys would pay in lender fees etc. especially with not-so-stellar credit.
Look at the financing on the loan that exists... what is the interest rate, length of the loan still to be paid... if the first owner has been in there longer than 2 years you may benefit also because that is fewer than the 30 standard years you would also have to pay.
IF this mortage is high interest, the guy was in for 1 year or less and if the current mortgage amount is way above current market value then you may be getting a raw deal....
I could only advise you if I had more info on the financials, other than that, this could be a potential win-win. you get in a home that just needs decorator touches/ the first guy gets his credit saved and you and your new husband get a home without newbie frustration/lender/realtor's hands in your pockets and a fresh start considering less than great credit. Keep the payments current and stay there 7 years or so and you and your hubbie stand a great chance of restoring your credit to great, too!
Good Luck!
2007-07-17 13:20:09 · answer #2 · answered by ChristiW 2 · 0⤊ 0⤋
He should pay taxes until the date of the title transfer. After that you pay them.
He should pay the mortgage up until the date of the title transfer.
If you make a deal, you need to go over all the finances first, this should be done via an attorney who specializes in real estate, as you might find even MORE LIENS against this property, not just taxes.
2007-07-17 13:14:55 · answer #3 · answered by Feeling Mutual 7 · 0⤊ 0⤋
That's actually not a bad deal for a house....regardless what State it's in. You just need to pay $10,000 total and you get the house... you are pretty lucky (for someone who doesn't have good credit).
Based on the amount of taxes.... this house's value is around $180,000.
2007-07-17 13:23:43 · answer #4 · answered by F T 2 · 0⤊ 0⤋
SO for 10K you are getting a house with bad credit? Thank the guy. Worst case you live there for a while, sweat it a little and sell it for something better when your credit situation improves.
Get it deeded to you asap; pay taxes and mortgage as a part of closing.
2007-07-17 13:12:53 · answer #5 · answered by wizjp 7 · 0⤊ 0⤋
Not knowing how big, or where, the house is makes it hard to answer, but I have a hard time thinking that spending $10,000 for a house is anything but a great deal.
Fix it up. Put some sweat equity into it. Give it a little curb appeal and you should be able to triple or even quadruple your investment.
2007-07-17 13:15:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
So, if I do the math right, you're getting a house for $10K plus repairs.
You don't have good credit. You're not going to buy a house any other way.
Do you want this house? Do you think that someone else would pay you in excess of $10K for it?
Is it haunted?
Is it in a bad neighborhood?
It's up to you, Babe. Sounds like a good deal to me if you can swing it. Don't sue me if it turns sour and you didn't give us all the facts.
2007-07-17 13:16:14 · answer #7 · answered by Anonymous · 1⤊ 0⤋
No, you got a house for $10,000
Put some tlc into it and you can sell it and make a bundle! It's called "flipping" a house! Good luck! You have the chance to make a lot of $....
I would love for someone to give me the opportunity to have a house for $10,000!
2007-07-17 13:13:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Depends on how much is outstanding on the mortgage, how much of a money-pit it is (contact a *licensed* house inspector to check on this), how much equivalent houses in the same neighbourhood cost, annual tax load, etc.
If it will cost you more than it's listed value to repair it up to code, save yourself the trouble and spend the couple grand to have it knocked down and have it rebuilt from scratch. Mind, that isn't cheap either.
2007-07-17 13:26:41 · answer #9 · answered by jcurrieii 7 · 0⤊ 0⤋
Depends on the value and your payoff
but if its a nice place
and only needs a lil tlc
you may have gotten a steal
so your 10k in dats not bad.
check the house for major problems b4 the sign over.
1. roof
2. plumming
3. foundation
other than that get cho money
2007-07-17 13:15:51 · answer #10 · answered by AntG 3 · 0⤊ 0⤋