gretta1

Brian thank you. The stress relief was immense and he said so. He's tried really hard to think of everything and not be a burden. The RM was a result of that thinking because he WAS cash poor and house rich. Simply saying it might not be necessary clued me in. dollar dog- yeah I absolutely didn't know and because he is still pretty sharp I didn't realize how confused he was. I had wrong information from the get-go and it took a couple of days to dig. And I didn't realize he was so stressed about it being the bank's (or so he thought). I don't really care because either way he is taken care of although I'll probably change my tune if he dies and there actually is a bunch of cash left in the house. I am the only one of the siblings who can be bothered with this sort of thing. His health problems are such (heart) that nobody in a million years thought he would live long enough to worry about being immobile so yes, circumstances have changed. I use to be this stupid about credit repair and pool chemistry too. But not anymore thanks to people on forums like Brian. Still, judge if you must. Turns out I didn't need to know this stuff yet but I'm really glad I know some rules about "cost basis" and "stepped -up" ahead of time. (and thanks yonifreedom). And if he wants to sell it now I can help a little.

I admit that I have been hiding my head in the sand. I have relied on him keeping himself comfortable. He has the house and and 2016 Buick. That is all that we know will be in the will. Plus a life ins policy of 30k and a fixed annuity of 28K that are both designated only to me but i am to distribute between myself and my 2 half brothers. I appreciate your help here...do I have a big problem?

Yes we are all over the place and finding out that none of it is really pressing at all. He's nearing the time when something has to change with his living situation and there are many possibilities . He inquired to the bank a while back and came out with the impression that there was a date looming (soon) where he would have to pay the loan, or sign the house over to them. I'm sure they were telling him that those were the stipulations if he moved or died, but he didn't understand that. He knew he could live there until he died, but he believed that the most he could ever sell the house for was the original appraisal of $144K. So I blindly took his word that there was a date that they were going to demand payment from him or turn over the deed. Then I rushed in to use my awesome new credit to buy the loan and make a zillion bucks. I've burned 2 inquiries but that is the amt of the damage done. Now we are taking a breath, and realizing that the amount of the payoff is only rising by the amount of interest accumulating (compounded) and that there is at least a couple-three years before it's a wash. PLEASE let me know if that is incorrect! He just needs a reason to keep watering a lawn that's "not already the bank's." Knowing that and that he can do a trial visit in AZ (less than 12 mos) and see if he can go off of oxygen and still run back to the Colorado homestead has done a lot for his morale! So my take-away is no need to do anything unless the event ACTUALLY arises that he can't stay there alone anymore.

Ok fundamental misunderstanding. He thought the bank actually owned it now and that when he died it would revert straight to the bank. He didn't know we (heirs) would have the option to pay off the lien and sell it for a profit (if there was still a profit after interest). Poor guy no wonder he was kicking himself. He's not getting as ripped off as we thought (beyond probably terrible loan terms) and he hasn't squandered the money. I am a bad child in that I'm barely learning enough to help him plus I was confused about the difference in being on the loan and being on the deed and needlessly tangling myself up. He has taken out all he can payment wise, but has no mortgage pmt and can handle the tax/ins for now. That's perfect. If he's able to stay there alone long enough for the interest that's accruing to outstrip the value of the house --so be it. The only people who expect a birthright inheritance don't deserve it anyway. If there is a profit from the sale the heirs split it and have no taxes. If he has to sell soon for health reasons he can have at least a little chunk of cash in his pocket. I'm not sure he knew that it was still his to sell. He'll have to rent/buy/live with me or enter insurance covered assisted living. I hope I haven't wasted anyone's time as I have learned a ton of stuff I should have learned before. Geez talk about jumping the gun. Thank you. If he wants to move for longer than 12 months but still have the place to run back to, we might have to get it into a conventional mortgage somehow. I might be back with more stupid questions.

Step-mom wanted to die at home so ramps and floors and chair-lifts etc...he was cash strapped and he took the loan right after when he wasn't quite in his right mind. I think he always thought he could buy it back with a couple of rentals he had that he ended up losing his flowers on...and I told him do it 'cause you can't take it with you. Since then the damn thing has really shot up but the reverse mortgage people told him is wasn't worth it (hehe go figure).

But can you do a 1031 exchange if you buy the first property as a second mortgage or as co-signed on a primary residence (his)?

I hadn't gone down that path. His credit is excellent. To be owner occupied he would have to get the loan and have me co-sign? When we sell he would have primary residence exemption and I would pay gains tax on my half of the profit? If he dies before we sell is the cost basis his original purchase price or something silly? So sorry it's just that we are only now in a position to even consider helping him (and us ) and I'm a complete newbie. What do you mean "a loan that doesn't need to be?" We have to come up with 122 right? If it's to my great advantage for some reason to sell it once he moves yes. If not, I don't mind keeping it as an actually second home especially while he is still alive and able to enjoy some family reunions there as it is the family homestead. I need to google implications of non-occupying co-borrower child: I am 1/5 of a will that can be changed to just me if we need as the house is the only asset and nobody else has the means to help. Regardless of the will, will the house revert to only me as the co-borrower? Or if we don't change it, and he stays and dies there, will I as the executor have to sell and split his part of the profit and such yuck what is the cost basis for us if we get a loan together and then sell ( I know the tax implication is different for us both) what is the cost basis for me if he stays and dies there while owning half if at least 122K do I care considering I'll come out ahead anyway. Will the house be devalued because it was sold for 122k instead of FMV and will it truly affect the resale value? Between us, dad hubby and I, we have equity, stable income, credit and only 122K needed. Surely there is a perfect way here and I'm probably overthinking the taxes and such and don't want to be greedy...thanks for taking the time to help. I don't expect anyone to actually answer all of that but it helps to talk out loud! BTW the B of A terms are 4%, 5k closing with 50k down gift of equity. Could also get loan a bit higher without triggering mortgage ins. to get dad some cash for fun and have a cost basis of FMV when i do sell. Brian you've been an immense help already-thank you

Hi there, So thanks to the fine people here I and my husband have the credit scores to work with me-779, him-805 as per a recent pull from quicken loans guy. Also 140K salary between us and same jobs for many years. We owe 120K on our house (value 260k now on zillow and trulia ) and no other debt. My dad has a reverse mortgage that is very quickly eating away at the equity and he has no funds to buy it back. He owes 122k (showing 170 zillow and 217K local RVM) He hopes I can get the equity instead of the bank. It would be nice to get him some cash also but not necessary. He's 78 and moving eventually but we can't guarantee when. He has long-term care insurance and a pension so there is no medicaid dodging hanky-panky going on. B of A (current primary mortgage in very good standing) says I can buy as 2nd home, list the sale at FMV, receive a gift of equity for the down and most of the closing, avoid PMI ins (72% ltv currently) and when I said I couldn't give a date for my father to be out it would be ok. quicken says I need to go with investment financing . I had a supervisor call and after quite a while said he was convinced my intentions were to not rent it out and would send it immediately to underwriting as second home...they said no, must be investment. They say B of A isn't sharing with me that if I won't sign the rider that says it will be vacant at closing then it will fall apart. I am aware of the capital gains aspect and i am gathering that ideally I could somehow get the $$ to pay off the reverse mortgage and then have him sell it to me at market value (to avoid capital gains tax) carrying the note (fully documented and charging applicable federal rate) and also pay me fair market rent thus avoiding capital gains tax I would of course pay on the note. But how? HELOC? Just pay quickens 4.875 investment rate and 2.8 origination and be done with it? Nobody asking me about occupancy. I can handle (barely) the 15% down. Complicating further i am in AZ and he is in CO so quickens easy online set up is nice. If you have read this far THANK YOU.

Up 80 points from 721 to 801...bankruptcy fell off...I was stunned!! Hurray creditboards!

I just had the same thing happen with interest hitting after I paid it off with PSECU. I wrote them a letter and they took it off. Dear PSECU: I am a customer with good credit who had a mishap when paying off a large amount to my credit card. Apparently a small finance charge hit after I paid it off. Your website showed a $0 in the balance column and a small amount in the payment column (in red) that I mistakenly thought was an overpayment on my part. I’m hoping you can see this was an honest mistake, and not at all indicative of my level of financial responsibility. This is the only derogatory account on my reports. This has actually tumbled my credit score quite a bit and I am hoping to refinance soon. I am enclosing a copy of the entry for all three credit bureaus showing my good payment history and that this is my only derogatory account. Please, please consider removing this late payment entry from all three of the credit bureaus. Sincerely, It worked for me...good luck!

Ok, thank you.

So Wells Fargo was going to buy my loan at 3.5 but wanted an automated valuation appraisal (avm?) It came up short by 7K and now they want 3.8% and about $3200. 4.4 apr. WTH good is the streamline "no appraisal" business anyway. They avm doesn't give credit for remodel and new windows so I think we would be ok with a real appraisal. Does anyone know how a "streamline with appraisal" effects the FHA MIP situation? Still .55 if before 6/1/09? My loan is currently with BofA and I haven't talked to them yet...doing that right now.

Thanks guys. If it's not a rip-off by any means then it sounds like a nice non-greedy number and I'll go ahead and pull the trigger. I've snuck in on every deadline so far from the 8K no pay back to the lowered MIP, and then again now with them thinking about making the MIP for life here pretty soon. So I guess I won't push it.

I got a quote for 3.5% FHA streamline in AZ...no lender credit I haven't gotten the GFE yet but that's with $1450 fees and $600ish prepaids and title. So $2000 at the table. 157K left on loan excellent credit Ok rate? He also offered 3.75% with lender credit. Thanks for looking!

For a full credit qualifying refinance would there be a new appraisal? How 'bout a new case number and endorsement date--not that those would matter much would they?