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06-08-2009, 08:03 PM #1
Renter
- Join Date
- Jun 2009
- Posts
- 1
Buying foreclosure with help of brother, got question.
Going to use a $200,000 foreclosure as an example, though this figure is more of a max for me. In my county, 20% is due day of sale and balance is due within 30 days.
I am 28, have 10k saved, and a credit score of 780. Finally have no debt, Woo Hoo!!!! I'm slated to make 60k this, last year I made 42k.
I am trying to take advantage of the market, interest rates, and the 8k tax credit.
My brother is gracious enough to help me out with the purchase of a foreclosure. Both him and my uncles have bought a number of foreclosures previously.
What would be the most money wise process of getting this foreclosure in my name and being able to receive the 8k tax credit and avoid paying double real estate transfer fees.
Have him purchase the foreclosure then I purchase it from him? Have him give/loan me the 20% and purchase it myself?
I will be going after vacation to see how much I will be pre-approved, next week. I'm not in a huge rush but would like to make the deadline of Nov 1st.
Any insight or advice would be greatly appreciated.
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09-12-2011, 11:30 AM #2
Fixer Upper
- Join Date
- Aug 2011
- Posts
- 50
The best way to structure the purchase is to enter into a written agreement with your brother to borrow the 20% down payment. Once you receive the down payment you can move forward with the purchase of the home in your name thereby avoiding the double transfer tax expense. Before you borrow the money from your brother make sure you both agree to the repayment terms and condition and all terms are included in the written agreement.
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