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Old 03-12-2010, 02:18 PM
 
Location: Northwest Indiana
811 posts, read 2,765,682 times
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I'm surprised they would let you use a realtor form for your contract. In Indiana they cannot be used by the general public, it even says it on every form. Make sure you can actually use the form, if you aren't allowed as a non-realtor, it could make the contract void.
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Old 03-12-2010, 02:20 PM
 
73 posts, read 426,422 times
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Quote:
Originally Posted by richb View Post
I'm surprised they would let you use a realtor form for your contract. In Indiana they cannot be used by the general public, it even says it on every form. Make sure you can actually use the form, if you aren't allowed as a non-realtor, it could make the contract void.
Am I going to get 100 responses about the copyright of the form that my escrow agent gave to me, meanwhile my main question goes unanswered? Even after I keep saying I may just use a generic NOLO form?

Last edited by fpbear; 03-12-2010 at 02:39 PM..
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Old 03-12-2010, 03:02 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,804,320 times
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Originally Posted by fpbear View Post
... I just wish one person had the answer about where the lender is expecting the Gift of Equity to be written....
Why not just ask the lender?
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Old 03-12-2010, 03:06 PM
 
73 posts, read 426,422 times
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Originally Posted by rjrcm View Post
Why not just ask the lender?
I talked to a major lender and the loan processor didn't even know what a Gift of Equity was. She asked me to hold on the phone and she checked with a co-worker and came back and said OK they have no problem to accept that as the down payment. Their lack of knowledge on this doesn't make me believe that a lender would know enough to tell me, at least not as far as their public-facing customer service reps.
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Old 03-12-2010, 03:19 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 20,826,555 times
Reputation: 6430
Quote:
Originally Posted by fpbear View Post
Am I going to get 100 responses about the copyright of the form that my escrow agent gave to me, meanwhile my main question goes unanswered? Even after I keep saying I may just use a generic NOLO form?
I gave you your answer. Reread my post.

You're also going to have an appraisal done, keep a copy so that you will have a record of the market value as of the date of transfer. Your reference to a gift of equity, is what's got folks confused. In effect, your mother is helping you with your down payment (which she will have to document with a gift letter for your lender).

I'm a big fan of Nolo, having used their books on many occasions, but your situation is why a lot of FSBO transactions end up having to have someone more knowledgeable get involved to fix things.

Last edited by DMenscha; 03-12-2010 at 03:31 PM..
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Old 03-12-2010, 03:27 PM
 
73 posts, read 426,422 times
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Originally Posted by DMenscha View Post
I gave you your answer. Reread my post.
Thank you, I am still confused though .. when I re-read your post "Basically you're getting an increased deposit from your mother (instead of your own funds)." Does this mean that I would write Gift of Equity in the Initial Deposit section? The reason I am confused is because the form section says "Buyer has given a deposit in the amount of:" but actually it is not the buyer who is giving this deposit, it is the seller, my mom is giving this gift of equity..
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Old 03-12-2010, 03:28 PM
 
Location: Boise, ID
8,047 posts, read 26,570,202 times
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Your main question is probably going unanswered because none of us are California real estate agents or California lawyers and thus do not know the answer. *Edit* Oops, sorry, except for DMenscha, sorry DMenscha

Disclaimers: I am not a real estate agent in any state, nor am I a lawyer in any state. Therefore, my opinion is only that, and should not be taken as legal advice of any kind.

Given that disclaimer, my opinion would be that you should write it in section 2.D. in the blank lines given for "Additional Financing Terms". Looking at the choices, that is where I think it makes the most sense.
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Old 03-12-2010, 03:32 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Reputation: 6430
LOL once again, my edit was made while you made another post
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Old 03-12-2010, 03:49 PM
 
73 posts, read 426,422 times
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Originally Posted by DMenscha View Post
...In effect, your mother is helping you with your down payment (which she will have to document with a gift letter for your lender).
Thanks, I'm trying to piece this together and if I understand correctly it sounds like you're saying it would go in the Initial Deposit section where it says "Buyer has given a deposit in the amount of:"

However, that doesn't make logical sense to me because, as the buyer, I'm not giving anything at all for the down payment (deposit). Even if my mom gifts the equity to me, I don't turn around and turn that into cash and then apply that cash toward a deposit. IRS wouldn't like that kind of accounting-transformation either.

Rather, to be correct, shouldn't it say that "Seller has given a deposit (for the buyer)... in the form of a Gift of Equity." But the form doesn't write it that way..

Maybe this is a tough question to answer because the forms do not really accomodate Gift of Equity? Perhaps different real estate agents end up filling it out differently but the lender ultimately figures it out? Perhaps the legalese of the wording on this doesn't have to be exact as long as it is clear enough to the accountants?

Last edited by fpbear; 03-12-2010 at 04:12 PM..
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Old 03-13-2010, 09:43 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 20,826,555 times
Reputation: 6430
You're in over your head. Call an attorney.
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