Posted by steve b. on March 07, 2002 at 14:50:52:
why carry back at all.I have lending sources that will lend 100%LTV on unseasoned homes.buyer needs 600 score or better.interested e-mail me at pedigo60016@yahoo.com
Pros - Please explain the legalities of carry-back - Posted by linda
Posted by linda on March 07, 2002 at 13:23:38:
I have had two brokers suggest I hold a carry back loan on the property I’m selling. One suggested that I “forgive” the carry back after a few months. I was under the impression that this was now illegal.
The neighborhood has already been “financially trashed” by over-appraised 2nd mortgages, so I need to keep all of my deals well above board. Due to financial conditions it’s very easy to to buy, rehab & realistically double the investment in this neighborhood, but I don’t want to look like I’m flipping houses. I’m am using realistic market values, not the overpriced current comps (which I am finding are often valued at over 150%.)
Any info would be appreciated. I’m working in Ohio.
Linda
Re: Pros - of carry backs - Posted by jonH
Posted by jonH on March 12, 2002 at 01:07:34:
If you forgive a carry back loan the IRS can look at that as unearned income to the debtor. I toyed with the idea of saying that I forgave a note as a out of court settlement…ie you did not disclose something then it would be tax free???
It is a mess and if you do not know these people well, be very carefull