find out who the section-8 for housing program counselor is. After going the counseling, that can get approved to use the amount of the section 8 voucher as payment on a mortgage.
John... The market down here is wonderful to buy in...and terrible to sell in. Lenders are using every instance or situation to delay funding the deal.
We have a contract to sell our clean, neat 1200 sq. ft. fully rehabbed home...for $69K. Barely breaking even...and the mortgage company is questioning, once again, the area comps. Can you say: Redlining?
Other areas of town.... the mortgage Lenders are questioning the values on a $129K property that previously sold for $240K. And our town also never experienced the run-up of prices. Lenders are not lending here now. Over.
[addsig]
In NY they passed a bill a couple years back called the Equity Theft prevention act (or something like that). Basically it is a bunch of disclosures drawn up by the atty that the seller signs if the property is behind in payments/in foreclosure. Not sure if other states follow something like this. As far as the tax credit goes, it would only apply to the end buyer you sell to if they are getting a new loan to purchase the property.
I just completed my first sub-2 deal last week from start to finish. When I took over the payments, I claimed all the interest and writeoffs when I filed my taxes. Sub 2 is a beautiful thing, just make sure theres equity there.
I am new to this site and I question the response that was posted regarding claiming ALL the tax and interest on a sub to. It sends a red flag to really taking seriously any of the responses... The sub to buyer is only entitled to the taxes and interest the buyer "paid" and that cannot be claimed until the 2009 tax return is filed.
I think the words do pay a important role. I am a bit confused: What are the tax benefits in a subject to transaction?
The loan is in the sellers name. Can they claim tax benefits on this loan? I am not sure how the Sub2 buyer can claim any tax breaks, since the loan is not in the buyers name.
Come on guys... It does not matter who holds the loan. if you bought sub 2 and are the new owner of the property. and can prove that you are making the payment... You are in effect paying the interest... Write off the interest that was paid by you... Dont complicate things.
If you make the mortgage payments, then you are entitled to the tax write-offs for the mortgage interest that you paid. Same for paying property taxes.
As for documents, I would recommend you get a qualified written request signed by the seller at closing. Under RESPA law you can send the qualified written request that asks the bank to change their mailing address to your address for the loan. That means you will start to receive all written correspondence from the bank. You can also use this to contact the insurance company also.
find out who the section-8 for housing program counselor is. After going the counseling, that can get approved to use the amount of the section 8 voucher as payment on a mortgage.
Chet:
Have you got more information on that program?
Mark
http://www.hud.gov/offices/pih/programs/hcv/homeownership/
John... The market down here is wonderful to buy in...and terrible to sell in. Lenders are using every instance or situation to delay funding the deal.
We have a contract to sell our clean, neat 1200 sq. ft. fully rehabbed home...for $69K. Barely breaking even...and the mortgage company is questioning, once again, the area comps. Can you say: Redlining?
Other areas of town.... the mortgage Lenders are questioning the values on a $129K property that previously sold for $240K. And our town also never experienced the run-up of prices. Lenders are not lending here now. Over.
[addsig]
who is deleting these posts? im sure i responded more than once.
Who is Wendy? where did you find her book?
In NY they passed a bill a couple years back called the Equity Theft prevention act (or something like that). Basically it is a bunch of disclosures drawn up by the atty that the seller signs if the property is behind in payments/in foreclosure. Not sure if other states follow something like this. As far as the tax credit goes, it would only apply to the end buyer you sell to if they are getting a new loan to purchase the property.
Thanks so much for your advice. Very informative. Knowledge is power!
No problem,
I just completed my first sub-2 deal last week from start to finish. When I took over the payments, I claimed all the interest and writeoffs when I filed my taxes. Sub 2 is a beautiful thing, just make sure theres equity there.
Thx
I am new to this site and I question the response that was posted regarding claiming ALL the tax and interest on a sub to. It sends a red flag to really taking seriously any of the responses... The sub to buyer is only entitled to the taxes and interest the buyer "paid" and that cannot be claimed until the 2009 tax return is filed.
These are very true words
As some just get in the moment and word things a bit wrong
But if you are looking for perfect words and everything stated the perfect way
This will just be a hard way in life
iam sure they were trying to say they were and are going to claim the full tax break when the time comes
PLS do enjoy this site
I think the words do pay a important role. I am a bit confused: What are the tax benefits in a subject to transaction?
The loan is in the sellers name. Can they claim tax benefits on this loan? I am not sure how the Sub2 buyer can claim any tax breaks, since the loan is not in the buyers name.
Please clarify.
[ Edited by worknomore on Date 07/06/2009 ]
They can as the property is in the buyers name
They have all the tax breaks but they get none of the breaks as in the intrest on the loan
All other tax breaks dealling with ownnning real estate go with and to the buyer in the sub-2 deal
HEY L2P
Was wantting to know what are the documents you use at your kitchen table close ?
As well what documents do you get from the seller at the same kitchen table close ?
YES / NO
What iam saying is yes it could get costly
No you do not all ways have a ready buyer / renter
But you should be getting a renter /buyer list in place while you are looking for your sub-3 deals as well
This should be just part in your every day real estate business FULL SERVICE
Come on guys... It does not matter who holds the loan. if you bought sub 2 and are the new owner of the property. and can prove that you are making the payment... You are in effect paying the interest... Write off the interest that was paid by you... Dont complicate things.
If you make the mortgage payments, then you are entitled to the tax write-offs for the mortgage interest that you paid. Same for paying property taxes.
As for documents, I would recommend you get a qualified written request signed by the seller at closing. Under RESPA law you can send the qualified written request that asks the bank to change their mailing address to your address for the loan. That means you will start to receive all written correspondence from the bank. You can also use this to contact the insurance company also.
Jennifer
[ Edited by jfmlv1950 on Date 12/24/2009 ]