All Forum Posts by: JOSH ELIOT

I'm looking for a house inspector to look over the house were potentially going to buy. It's in Northridge, California. Interior and exterior. Thanks

Hi,

We're looking for someone to do the inspection on our whole house. Northridge, CA. thanks

Hi Everyone,

I’m buying a house in California, my Dad is the seller.

There is $350k left on the mortgage. All Dad wants from me is $100k. Originally, I was going to get a loan for $350k from my credit union and give Dad $100k that I have saved up. I was going to do all of this, until a woman at a credit union gave me some advice.

She said to do it this way:

My Dad should add my name to the title, then in 30 days he does a quit claim and takes his name off the deed. At that point I go to the credit union and re-fi the house in my name only (maybe a “cash out re-fi” if I can?) based on my credit score and current rate.

1.

Will the credit union re-fi the house in my name immediately after he takes his name off the deed? 

How long will it be before the credit union re-fi’s the house for me if not 30 days? 

I want to re-fi because Dad is paying more than $1,000 a month than I will when I re-fi, and I want o lower mortgage payment. (The woman who helped me also said not to tell the credit union that I’ll be using for the re-fi, that I’M doing this, she said they won’t like it).

2.

Is this safe?

Is this legal?

Foolproof?

Can something go wrong and screw up the whole deal? 

I would imagine I’ll still need title insurance and an escrow agent, but they’re not there to help me navigate the rough waters so much if something goes wrong, from what I understand. I’m a bit nervous about doing it this way, trying to make sure I do everything properly.

3.

I have to give Dad his $100k. How do I explain this to the IRS at the end of the year of we're not treating it as a sale for him? The money isn’t going to his bank, it’s going to his financial advisor.

The woman suggested doing it this way because it will save Dad and I a bundle of money of fees. I asked her what fees but she didn’t get specific.

Thoughts? If this is a tricky way to do it and something may go wrong, I will just do it the original way.

Thanks everyone!

Hi, My credit union is referring me to their title and escrow agents. I know there are a lot of title insurance and escrow agents around to choose from. I have referrals from a few friends here in Los Angeles too. I don't need a realtor for the purchase of my house (different story). Are there any reasons NOT to use the agents the bank is referring me to? Are there competitive rates from other people in those fields? Do I stand a better chance of not getting screwed over if I bring my own people? What do I want to do, what's better for me? Is one agent better than another or are we filling out the same forms so it's cookie cutter to them, ie. same paperwork for both of the agents that will be helping me with these two transactions.

My lender, a credit union, said I could go to 43% but my down payment would have to increase. Ive heard banks are wayyyyyy more difficult to deal with. Ill ask, thanks a ton 

Thanks Vanessa. I know it's  42% does that change anything? 

The form is called the BOE-58-AH Claim for Reassessment Exclusion for Transfer Between Parent and Child. Anyone ever hear of that or use one?

I just saw that my message above was missing the form. I guess we can't italicize anything on here. 

The form is BOE-58-AH Claim for Reassessment Exclusion for Transfer Between Parent and Child. Anyone ever hear of that or use one?

thank you!!

Hi,

I listen to this podcast often and I love it.

I’m not sure how to strategize this. Here’s the deal. I’m 47, buying my first house in Granada Hills, California with my wife and child. My father is selling me his house. It was appraised at $672,600. There is $350,000 left on his mortgage. All he wants from me is $100,000. So, if I came up with a $450,000 loan he would be happy. My lender is a credit union. My credit is 799. A bank told me I could probably buy a $700,000. house with my excellent credit.

The appraisal for the house came in after I filled out the paperwork for the pre-approval at my credit union, so we didn’t know how much the house was worth, but I wanted to get all the pre-approval stuff out of the way because I didn’t know how long it would take. As it stands now, the pre-approval from the credit union says I'm approved for a $540,000 purchase price on a house (again we didn’t know the value of this house at that time) which equates to a $430,000 loan after my 20% downpayment. My mortgage would be about $2000. a month, which I can do. 

So what I care about right now is, only the Loan amount, because I know what I need dollar-wise to get the house. Is that wrong? Am I thinking about the wrong number? A friend of mine tried to tell me to increase the sale price of the house, because later if there’s a gain on the house when we sell it, I’ll have to pay less on taxes. I heard about the $250,000 allowed per person when we sell the house. We will probably live there for 5 -10 years or longer, who knows.

When I speak to the lender, I don’t know how to ask for a $450,000 loan amount. Is there a way to ask? Do I just flat out ask? 

I am aware of the “fair market value - arms length transaction” that certain Agencies will be looking at, which may affect this and blow everything out of the water. I can’t afford to pay more than $2,300 a month mortgage. 

Can I even get the house for $450,000, if it’s worth $676,600 or will “they” make him increase the amount of the sale price? (I never understood that, who do they think they are? Why do I have to increase my mortgage payment just for them? If my father wants to sell me the house for $450,0000. he should be able to sell me the house for that amount without anyone interfering, right or wrong)?

My math question is, am I able to determine what the sale price is of the house is if I already know what the loan amount will (should) be? I realize I’m doing it backwards but I’m in the unique position of knowing what the seller needs from me.  This would be useful to say to the lender, I would think. If I could figure out somehow the sale price of the house, then have the credit union give us a loan of $450,000, everyone would be happy. How do I calculate this? 

There is something called a BOE-58-AH Claim for Reassessment Exclusion for Transfer Between Parent and Child. It’s a form I can fill out that will help with my property taxes or at least that's what someone told me. Then I heard it doesn’t help me, it helps my Father. People are telling me to use this form anyway. Thoughts on this? 

Prop 13 exists in California! Can I make it work for me? 

If I have the option to throw out the first number to my lender, how much should I buy the house for? I only have $100,000 to put down as a downpayment, remember. Can I make this work by just putting $100,000 down?

Do I want to buy the house for more that $450,000 (if I'm given the choice) so that when I sell it and there's a gain I won't get nailed in taxes? Won't that increase my mortgage payment if I can only put down $100,000 as a downpayment and the sale price is say, $600,000? I would need to put more of a downpayment in to keep the mortgage payment low, but I don't have it right now.

I know if I don't put 20% down, I will have PMI so I'm trying to stay away from that.

Thanks for your time, everyone!