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I'm curious....what is this huge risk he's taking? Sounds like it's YOU taking the huge risk.
I'm confused too. What his is risk exactly? The only risk I see is that he may not be able to pay the mortgage and would then lose the house and ruin his credit.
Out of curiosity...how much cash is he contributing to the down payment up front. I understand he is getting the mortgage, but is he putting in anything towards the 3% or is your $50,000 the entire 3%?
I agree this is a huge, scary situation. As Dr. Phil says...if this is a good idea now, it will be a good idea a year or two from now when you are married and able to legally live here. Wait, wait, wait.
If pull your money from the deal, your BF won't be able to get financing and it should kill the deal. In most cases, if it's within a certain time frame, you will get the earnest money back.
I also really don't understand the things your attorney is telling you. I don't understand at all how giving your BF $50,000 doesn't have some kind of tax implication. I don't know much about tax law but that goes against everything I have ever heard. I also don't understand "out of state with no tax records". What does that mean - in a bag, under a mattress somewhere?
Talk again to your attorney AND to a tax lawyer (or maybe just a tax lawyer or tax accountant). I would very much double check this whole money and tax thing.
Be really, really careful. This just has "potential disaster" written all over it.
As far as giving money as a gift with no IRS tax or involvement.$10,000 is max.
Currently, the maximum annual gift exclusion is $14,000 per person.
As others have questioned, what is HIS risk in this? I have to agree, something doesn't sound right here. Is he coming up with any money for the down payment? If not, I'm sorry to say: R U N!!! You really do need your own attorney (someone independent from your fiance) who will give you the proper advice before you hand over $50,000 and possibly sign papers you don't fully understand.
Last edited by Elke Mariotti; 03-22-2015 at 12:59 AM..
I'm confused too. What his is risk exactly? The only risk I see is that he may not be able to pay the mortgage and would then lose the house and ruin his credit.
Out of curiosity...how much cash is he contributing to the down payment up front. I understand he is getting the mortgage, but is he putting in anything towards the 3% or is your $50,000 the entire 3%?
I agree this is a huge, scary situation. As Dr. Phil says...if this is a good idea now, it will be a good idea a year or two from now when you are married and able to legally live here. Wait, wait, wait.
If pull your money from the deal, your BF won't be able to get financing and it should kill the deal. In most cases, if it's within a certain time frame, you will get the earnest money back.
I also really don't understand the things your attorney is telling you. I don't understand at all how giving your BF $50,000 doesn't have some kind of tax implication. I don't know much about tax law but that goes against everything I have ever heard. I also don't understand "out of state with no tax records". What does that mean - in a bag, under a mattress somewhere?
Talk again to your attorney AND to a tax lawyer (or maybe just a tax lawyer or tax accountant). I would very much double check this whole money and tax thing.
Be really, really careful. This just has "potential disaster" written all over it.
Initially I thought I was taking all the risk. The attorney (I chose from Brooklyn Bar Association) told me it is him who is taking a slightly bigger risk. He says once my name is on the contract my name has to be on the deed. Unless I sign power of attorney, he needs my signature at closing to complete the deal. I am not writing any gift letter we until closing so by the time I sign the deed and take title as joint tenancy I wont be commiting to anything.. He paid the deposit and he is going to pay the rest of his portion of downpayment and closing cost at closing (which is about $10,000 more than my contribution).
<if I gift him the money at closing>
If I sign the deed and gift money to him at closing, I am no longer responsible for any maintenance from this point. Whether or not I marry him, I am entitled to half of the house. In the case my visa was denied so I couldn't come to America, I still own half of the house without being married to him and responsible for monthly mortgage payment. He has to pay mortgage and maintain the house by himself (fixing the problems of the house and all any other maintanance fees). If our distance relationship doesn't work he needs my signiture and agreement to sell this house and once it is sold half of equity would be given to me.
If I want to handle it separately without gifting I have to come with 30% down(downpayment) and show the bank I have 50% of the purchasing price in cash in my bank account (I believe some foreigner buy houses in cash because of all the requirements and regulations..) I don't have this kind of money..
Mix, my only question is... why the rush to buy a home? I would think the first thing you both would want to do is make sure you get the visa to come to the US.
Why can't you two just wait until you get a visa to come to the US?
Did you even see this house? Are you sure you're going to like the neighborhood?
My advice? Get your own attorney to represent your interest.
Absolutely. At the risk of sounding negative, a lot of relationships fail, and yours might be one of them. Considering the two of you are not married, unless you are careful, you may have no legal right to the home or the monies put in it if you guys break up prior to your marriage. So please hire a real estate attorney to represent yourself only. That way you protect yourself fully, and that's especially important considering you are in the US on a visa.
... Just thinking what could go wrong......One way he could take your money is to file a quit claim deed giving him your share of the house, forging your signature, then selling the house and keeping the money.
Your ability to fight this from another county would be near impossible unless your willing to spend another $50k or more on lawyer fees.
Does this happen? Yep. Can the police do anything about it? No, its a court issue. Takes years to clear up.
I have to agree. You got a free consultation which is worth what you paid for it. Absolutely nothing. I suspect some of what you are telling us is from your boyfriend and his buddy. Using real terms and sticking as close to reality as possible is how con men operate. You probably showed the lawyer a purchase contract that was filled out and signed by your boyfriend. It was probably a real one from the internet. There is likely no seller. But the form is real so that is what the lawyer commented on.
Here is how this could go down.
You show up at 'closing', sign a bunch of documents that were printed on someone's home computer, with a bunch of your boyfriends buddies there posing as legitimate people. You get on the flight with the documents in your hand that were printed off the internet and filled out by your boyfriend. He has your $50K cashiers check. You never hear from him again. All of a sudden there is a phone number that has been canceled and an e-mail address that goes no where.
If your really determined to lose your $50K we can't stop you. But you really need to think about how devastated you will be if this happens and weigh it against the chance that your fairy tale ending will work out like you want it to.
From everything she has told us, this has all the clues of a scam you hear about on the news..... the only thing different is.... it hasn't happened yet. We are simply offering advice on what "could" happen, and information is never a bad thing.
At the end of the day, its her money, if she can afford to loose $50k on this very, very risky purchase, so be it.
I agree with the other poster.... if its a good idea today to buy a house together, it will be a good idea in 2 years when your visa situation is settled, and your married. The legal protections of marriage in the US is very important and should not be overlooked.
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