How does the IRS deal with profits after a separation when a house sales?

July 102010

My ex boyfriend and I purchased a home 8 years ago. We are both listed as borrowers on legal loan papers. We had worked hard on fixing it and increased its value considerably. The quality of our relationship, however, did not improve or increased and we separated. I moved out of the property a year and a half ago but remained legally responsible for the loan and he still lives in it. Although we are no longer together, we remain good friends. I am looking into purchasing a vehicle within the next four months and I am already sure that I won’t be able to qualify for an auto loan due to the financial responsibility I still share with my ex boyfriend. We have discussed refinancing the home and making him the sole responsible party for the loan and therefore, removing my name from the mortgage and its financial commitment.. Currently, he can not buy my part of the loan out and refinancing will be just to remove me from the papers without taking money from the equity to at least maintain similar monthly payments and hopefully get a better interest rate. We have agreed to sell the home later (still work to be done, not in optimal selling condition) and divide the profits once the sale goes through. If we refinance this loan to his name, how will the IRS deal with my share of the the profits? Since I will not listed as the borrower, I am afraid the IRS will read my gain as a gift and I will be taxed for it. Should I make the refinancing transaction with my ex through the courts to have a legal binding document to fall back to during tax time and for good practices sake? How should I go about this? HELP!

Whether you are on the loan has no effect on the taxes on the gain. Removing yourself from the loan does eliminate your ability your ability to deduct the interest on the loan, but has no other tax implications. The question of whether the gain is a "gift" is determined only by who owns the house, in other words, who is on the deed, not the loan.

Real Estate Time BOMB. Foreclosures and the Collapse of the Real Estate Market

June 242010

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What I learned today will have devastating ramification for the real estate marketing and in turn the entire financial and stock market and the broader economy as a whole.

If true…our real estate fate is seal. There will be more housing and real estate foreclosure carnage ahead. The road is long.

Prepare yourself and protect your family from this coming economic catastrophe.

PLEASE RATE, LINK, SHARE and SPREAD the word so others can learn about the real nature of our real estate and economic crisis. Don’t be a sponge to the talking heads that spew only that which benefits them and their bosses. Wake up!
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From L.A Times:

Bulk of bank-owned homes aren’t even on the market yet
“Banks to unleash flood of REOs” at Inman News looks at the effect of foreclosures on the housing market this year:

Inventories of unsold homes are likely to swell in coming months as lenders begin to push a growing backlog of repossessed homes up for sale — often in communities already awash in distressed properties….

Because it can take weeks or months for lenders to put repossessed homes on the market, the impact of real estate-owned (REO) properties on inventories lags behind foreclosures. Government efforts to recapitalize banks through the Troubled Asset Relief Program (TARP) and other bailout measures may also have taken some of the heat off of lenders to unload REO properties at fire-sale prices.

But with the emphasis of TARP and other government relief efforts now expected to shift to creating jobs, helping troubled borrowers avoid foreclosure and providing incentives for home buyers, lenders could soon unleash a torrent of real-estate owned, or “REO” properties — even in markets already flooded with an oversupply of homes for sale.

“It’s almost like a tsunami — you can see it coming and you know it’s going to hit but you can’t get out of the way,” said Ann Stickel, vice president of affiliated services with Sarasota, Fla.-based brokerage Michael Saunders & Co.

So how many bank-owned properties aren’t even on the Multiple Listing Service yet? RealtyTrac senior vice president Rick Sharga puts the number at 75%. That’s a lot of houses.

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Tags: “The dollar collapse” “housing crisis” “financial crisis” subprime hyperinflation inflation economy “economic collapse” “stock market” “stock market collapse” “real estate” fed “federal reserve” money “fiat money” gold silver commodities housing bubble 2009 2008 downfall investing for sale training agent agency selling subprime Peter Schiff Jim Rogers Gerald Celente Alex Jones Ben Bernanke

Duration : 0:7:54

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I don’t really understand how buying a house works. How do you determine what you can afford?

June 202010

I have been reading that the average length of a mortgage is ~ 30 years.

Keeping it simple, how much of your monthly salary should you expect to pay for a mortgage.

If you make ~$100,000 a year, what would be the highest priced house (before mortgage interest, IE house sales price) you could realistically buy?

There are 4 main factors a lender will look at when determining your qualifications:
1) Your credit score
2) Your downpayment (the Loan-To-Value: how much you are borrowing versus the value of the home)
3) How much money you will have in the bank after the downpayment (financial reserves)
4) Your Debt-to-Income ratio (DTI)

Your question is really focused in on the Debt to Income ratio. The simple answer in the current market is 45%. Of course, there are further details.

DTI is split up into two groups, one called "front end", the other "back end". Front end is calculated by combining all of the components of the housing payment: Principal, Interest, Taxes, Insurance, and Mortgage Insurance (if applicable) – commonly referred to using the acronym PITI. There really isn’t a fixed number that is acceptable, but many people have this as about 25% of their gross (total) income. More important is the back end ratio. This is ALL of monthly financial obligations including credit cards, car payments, student loans, alimony, child support, etc. as compared to your total income. These days most lenders are using 45% as the maximum, with some exceptions.

On your example, someone making $100k a year ($8,333 per month) could qualify for total payments (Again, all house expenses and other financial obligations) of $3,750 per month. Using extremely rough numbers for an example: 5% interest rate, 30 year fixed loan, the Principal and Interest on a $500,000 loan is $2,684 per month with Taxes (In California) at about $520 per month and insurance of approximately $125 is a total of $3,329 (In this example I did not include Mortgage Insurance in the required payment). With no other debt, a person making $100k would qualify for that loan. Of course mortgages are now more complicated than ever, but this is a basic explanation.

Mini Home Fire CRC sales Salisbury New Brunswick Canada

June 192010

fire started around 1pm today, believe it was caused by a cigarette, under investigation by the RCMP .
Fireman responded from Salisbury, Petticodiac , Elgin, Havelock, Riverview and Moncton fire depts. The couple lost everything in the fire, and had no insurance. CRC is supplying the couple with a RV to live in for now.
Videos were used on Global news, CTV, CNN & 2 Bon heures.

Duration : 0:1:49

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Pricing a Foreclosure or Short Sale

June 152010

Buying a foreclosure or short sale is basically the same as buying any property on the housing market. You may be able to get a good deal on a foreclosure or short sale if the market is full, but the market value and property value in your area will drive the pricing and financing the loan. Watch this Expert Real Estate Tips video for more information about short sales and buying a foreclosure.

Duration : 0:1:59

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How much would you walk away with on a 150k house sale?

June 142010

I’m sure it varies on different circumstances like are you paying closing costs for the buyer etc but on your typical run of the mill standard sale what do you get after closing costs and everything you have to pay?

The sale price of the house, minus the Realtor’s commission (typically 6%), minus sales transfer fees, minus closing fees (title insurance, document fees) and
As a rule of thumb, take the sale price, minus 10% for all the above items and then subtract the biggie, the mortgage payoff amount, to come up with your cash out balance.

To summarize:
Sale price, minus +/-10%, minus mortgage payoff, minus any liens, minus any unpaid property taxes = profit

You will receive a closing estimate from the title company once the file is initiated

Bank Approved Short Sale House in Chicago Garfield Ridge!!

June 112010

http://www.tourfactory.com/s607577/r_www.youtube.com

For more information, contact:
1 Agent of The 1 REMAX in Chicago (2009)
TEL 773-987-8224
Michael Sorensen – REMAX CITY

5214 S. Rutherford Ave, Chicago IL 60638 – CHICAGO SHORT SALE HOMES FOR SALE, CHICAGO SHORTSALE REAL ESTATE LISTINGS, CHICAGO SHORT SELL PRE FORECLOSURE PROPERTIES, CHICAGO HOUSE FOR SALE SHORT SALES, CHICAGO GARFIELD PARK REAL ESTATE, MIDWAY, SOUTH CHICAGO SHORT SALE HOMES, CHICAGO SHORT SALE REAL ESTATE, CHICAGO SHORT SALE PROPERTY, CHICAGO PRE FORECLOSURE HOUSES, AMAZING HOME WITH 2001 SECOND FLOOR ADDITION! GREAT FLOOR PLAN! LIVING RM AND FAMILY ROOM, OPEN KITCHEN W/ ISLAND, MASTER BDRM SUITE W/ WALK-IN CLOSET/ LUXURY BATH/ JACUZZI TUB AND SEPARATE SHOWER. 2ND FLOOR LAUNDRY RM. FULL FINISHED DRY BSMT/ 2 FURNACES (2001 & 2005) 2 HEATING A/C SYSTEMS/ NEWER FLOOD CONTROL SYSTEM/ DECK W/ HOT TUB AND POOL! EXCELLENT GARFIELD RIDGE LOCATION! SHORT SALE/ SUBJECT TO BANK APPROVAL. MICHAEL SORENSEN REMAX CITY REALTORS CHICAGO NORWOOD PARK ILLINOIS TOP SHORT SALE REALTY BEST REAL ESTATE AGENTS BROKERS SPECIALIZING IN SHORT SALES IN CHICAGO COOK COUNTY IL.

Duration : 0:2:29

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Luxury Home Short Sales Real Estate Foreclosures Investing

June 72010

www.TheShortSaleSecret.com – This is a video of how one of my students closed a luxury home short sale deal on his very first deal with no previous experience, only $914.00 invested in the deal, and no use of his own credit. He made $169,742.00 WOW

Duration : 0:7:35

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1 house per postcode 4 sale by postcode

June 32010

private house sales australia. house 4 sale by owner,d.i.y house sales,no more commision,up load your video to youtube,

Duration : 0:1:45

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Focusing on Quality to Boost Sales

May 302010

Burger House Hamburgers Co-Owners Angelo Chanitils and Chris Canellos get tips for maintaining high quality to make their products stand out in the crowd.

Duration : 0:5:53

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