| Question |
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How do I write off a seller financed 2nd mortgage?
I am selling my house for $89,900, the buyers said the only way they can get a mortgage for that is to have the paperwork show a sale price of $113,000, with me financing the remaining amount, and then I can write off what I'm supposedly financing without any penalty. How do I write it off?
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| By
john b |
Posted on
03/23/07 Total Answers
7 |
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| Answers- |
| DO NOT DO THIS.
You are talking about fraud and it will not go well for you. |
| Answer by :
Janet P On Date
2007-03-23 13:08:33 |
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| NOOOOOOOOOOOOO way are you nuts? you are going to pay for them? if they want a sale price of 113 then thats what you should get. not 89900 this is total fraud and you will end up in the dog house eating all their mortage. |
| Answer by :
swimmyfishy On Date
2007-03-23 13:11:24 |
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| Don't fall for it. They want you to take a bad debt writeoff against other income. Its still your money they are losing.
If you think you want to be in the mortgage business then loan them the difference $23,100 but insure that the 2nd mortgage is secured by the deed. Also make the terms of payback short, like 3 to 5 years at a fair intereste rate.
Downside,,,if they default on the first mortgage that bank will take the house and you will be left holding the bag so to speak.
Be leary |
| Answer by :
Carlotta On Date
2007-03-23 13:12:21 |
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| I have to second the previous answer. You would be deceiving the lender for purposes of getting them to loan more money than they would otherwise be willing to loan. This is a textbook case of FRAUD.
DO NOT DO THIS.
FIND ANOTHER BUYER. |
| Answer by :
Searchlight Crusade On Date
2007-03-23 13:28:29 |
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| If the house can appraise for $113,000, you can sell it at that price and give a 20% gift of equity through most lenders. There is no fraud in doing it that way and is perfectly legal (at least in IL). I would definitely consult a real estate attorney in any case. |
| Answer by :
dan a On Date
2007-03-23 14:50:53 |
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| Maybe they're not intentionally being fraudulent, maybe they just don't know how else to buy the house, which doesn't mean do it. You should tell them no, but to get with a good mortgage broker, there are lots of loans out there.
No, I'm not a broker, but we bought a house a few months ago where we had to be really creative and it was completely legal. |
| Answer by :
bnb On Date
2007-03-23 15:43:27 |
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| You cant. Its illegal.......the word is fraud.
Forgiving a loan in and of itself is not illegal, but seller seconds need to be disclosed by law if you are going to a federal lending institution. hen ther is the issue of value and will the home appraise.
Plus its a ridsiculous request, as you would be under no obligation to forgive the debt.
Find another buyer or let him find a way to obtain the money without involving you.
Good Luck |
| Answer by :
ed@myfinancialmentor.com On Date
2007-03-23 16:54:44 |
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