gift letter

**ydinai001** · 08-19-2008, 10:29 PM

what are the options to repay back a gift letter to a foreign family member? The gift was given to maintain adequate reserves when I bought a house. I had enough for the down payment but they want us to show enough reserves.

Also, we did take more then required as gifts since wanted to be ready for any last minute change in the lenders down payments requirements.

Now, we really don't need these funds, our resources are enough for the mortgage. How can we repay back these funds to our family members?

thanks!

**Mike Taylor** · 08-20-2008, 02:35 AM

I think the official answer would be you can't. The lender probably made your relative sign a letter stating that the money was just that, a gift and is not expected to be paid back.

**Greg** · 08-20-2008, 07:06 AM

Most people like cash. Any other way and your relatives might have to declare it as income and pay taxes.

**ydinai001** · 08-20-2008, 11:12 AM

The gift came from my family with no intention to return it back at the time. Now, 1 year later, for various reasons which have nothing to do with the purchase of the property 1 year ago, I have money and I would like to transfer it over to them. Does this mean I can't?, ever?!? The amount of money is close to what I got 1 year ago but not exactly the same.

thanks,

**KellyMcDonald** · 08-21-2008, 07:24 AM

ydinai001, unfortunately a "gift" is just that, a gift - you aren't expected to repay it. If you want to repay the gift, you may want to check with a real estate attorney (or maybe there is one on this forume somewhere) about the best way to go about that, and/or if you are allowed to do so. Because as Mike Taylor stated, the person who gave you gift probably had to sign a letter through your lender stating that they were not expecting this money back. If they didn't sign anything, there may be a way around that, but you're best checking with an atty.