U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-02-2013, 01:56 PM
 
1 posts, read 3,294 times
Reputation: 10

Advertisements

I am wanting to owner finance my mom. I will do a contract to deed. Just don't how to do the taxes so the buyer can pay and get an tax break like homestead. Anyone have any suggestions?
Quick reply to this message

 
Old 08-02-2013, 02:16 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,063 posts, read 17,016,522 times
Reputation: 21667
Yes. See a lawyer before you do this. Seriously. If you insist on doing this (and most people would say that lending money to family is a terrible mistake), you need a proper legal document.
Quick reply to this message
 
Old 08-02-2013, 02:26 PM
 
Location: Cary, NC
31,035 posts, read 54,315,552 times
Reputation: 29531
Quote:
Originally Posted by Jkgourmet View Post
Yes. See a lawyer before you do this. Seriously. If you insist on doing this (and most people would say that lending money to family is a terrible mistake), you need a proper legal document.
Ditto on formalizing via an attorney.
Do NOT do this casually. It will be guaranteed to derail and you need a framework.
Quick reply to this message
 
Old 08-02-2013, 03:23 PM
 
Location: New York
2,251 posts, read 4,108,244 times
Reputation: 1606
Quote:
Originally Posted by desertvoice1 View Post
I am wanting to owner finance my mom. I will do a contract to deed. Just don't how to do the taxes so the buyer can pay and get an tax break like homestead. Anyone have any suggestions?
This is easy a easy question to answer.

I understand what you are doing showing your mom as the owner to qualify for homestead exemptions. First you didn't list what state you are in, closing requirements and filing are different between states. The question you are asking is relates to how information is listed on the documents, not how it is filed with the county.

Simply your mom is going to listed as the owner and you as the lien holder. Most likely you will need to provide copies of your loan agreement to give to the title company so they can forward to the court house to record her as the new owner. Within 30 days a tax bill will be mailed. When it comes to paying the taxes - it will be up to you to decide if she pays the taxes and HO Insurance outside the mortgage, or a payment including including escrows. Ultimately because shes the owner,m it will be her responsibility to pay the taxes.

Filing for the homestead exemption - again you didn't say your location. Here in my state we have the Star Problem that reduces taxes for mature adults. There is only one date to submit an application, to take advantage of this problem. I have no idea how other states do this.

Good Luck....

..
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top