My daughter and son-in-law and two small children moved to the US from Italy and have been living with my husband and me for the past 7 months. They want to buy a house, have ,000 in cash to put down and I recently took out a second mortgage (fixed 15 year 6% home equity loan) for 0,000 to loan to them interest free so they can buy a house with cash for 5,000. But my husband and others are telling me it may get complicated with the IRS, etc.

We planned to have papers drawn up, like a promissory note, saying that they would make the monthly payments on the 0,000 loan that is under my name. And if they should die or move before the loan is paid off, the money from the sale of the house would go to pay off the 0,000 loan. Do I need to charge interest for them? They are actually going to be paying off the loan that is under my name and already has 6% interest being paid. Is the fact that it is over 0,000 going to be a problem with the IRS and interest-free loan’s to family? It’s not a gift because they are paying it off.

It’s all very confusing and I don’t want to get stuck with a big gift tax or imaginary interest tax or worse yet, get in trouble. Do I need a lawyer or can we just get a Quicken Lawyer software Promissory note and be okay? I trust my daughter and son-in-law to pay this loan that’s in my name. It’s just been hard for them to get a loan right now because of the requirements for 2 years residency, 2 years at one job and 2 years credit in US. Price of houses are down and I want them to be able to buy one now.

I’ve found the going rate for 3+ BR 2bath homes in my area to be 0k+ .
My home has 4BRs, 2Baths. I had bought it as a fixer-upper. Due to my unemployment and disability in the family I have to sell.
I know that nobody is going to pay 0k+ for my house. In my estimation it needs about – k worth of work to really fix it up into tip-top shape.
I want to price the house at 5k so a prospective buyer knows I’m taking the fix-up expenses into account, and hopefully drawing in a maximum # of interested people to bring a quick sale. This leaves less negotiation room on offers less than 5, I think someone willing to take on a fixer upper would find this place to be a great deal at 175k.
Alot of people are telling me to price higher, but I need a quick sale – I can’t afford the mortgage for much longer.
At 175k, I can pay off ALL my bills (incl mortgage) and have money in the bank.
Is this a crazy idea? What do you think? Alternative ideas?
Hokie – I’m in New Jersey. In my town, a 2BR 1Bath Condo is selling for 0,000.
i don’t think those condos are gonna sell at that price, since a 3BR house is listed at 9k. I’ve also looked at recent sales information (I have an aquaintance in real estate) and people are getting over 0 for similar homes.

Maria – I’ve still got some wiggle room at 175k. It would come down to how much I can get into the bank. But my minimum number includes a certain dollar amount that I want in the bank in order to make my necessary move happen. I don’t want to shaft myself out of extra $$$ if someone is willing to pay it.

Thankfully, I know I won’t totally lose money even if I had to drop the price to cover the mortgage & home equity loan, without paying off all the bills. I’m close to a job offer, but that is closer to the relative I’m going to be caring for and at a pay-cut.
Doc – I’m planning to do for sale by owner first to avoid paying commission to anyone.
Here’s my strategy – - I’m really hoping to get 0k for the house – that way all my bills are paid and I’ve got enough money to go into the bank.
I figure if I list @ 5, I’ll get plenty of interest and the first offer of 160 or more would get it.
I’m not actually hoping to get 175, although it would be nice. I know not to price the house at my bare-bones, bottom-line absolute minimum I need to sell for.
I know people are going to want to negotiate.
Is 15k enough of a cushion to negotiate on.
If somebody got the house for 160k, put 40k into it and fixed it up, they could easily list it for 250 or more and actually get that price. They’re happy ’cause the house is worth more than they put into it and I’m happy because I sold for what I really want to get.

I am trying to sell my house and I want to buy a fixer upper that is liveable, but needs extensive renovation work. How can I get money on top of the loan to use to do repairs? I was told I wouldn’t qualify for a home equity loan because I will not have lived in the new house long enough.