Re: OT -Need to file a private mortgage??

On May 31, 10:19 am, "Tom G" <toma...@xxxxxxxxxxxxxxxxx> wrote:
"HeyBub" <hey...@xxxxxxxxxxxxxxx> wrote in message

news:6uOdnWcz2fks_tzVnZ2dnUVZ_gOdnZ2d@xxxxxxxxxxxxxxxx



hr(bob) hofm...@xxxxxxx wrote:
I am giving a relative a mortgage on their home as I can get a higher
interest rate and they can get a lower interest rate than either of us
could get using a regular bank.    I will issue annual 1099 forms so
they can claim the interest on their taxes and I will declare the
interest on my income tax.  We have all the papers drafted, etc, but
someone asked why we were bothering to plan to record the mortgage
with the county recorder.

I was surprised, I never even thought about why, just assumed that
everyone did record all mortgages.  The only reason I can see for
recording the mortgage is to let any future prospective purchasers of
the property be aware of the fact the the owners do not have a
completely clear title to the property.  What am I missing??

A morgtage isn't your only option. A Contract for Deed is another. If
everything goes right, it works the same way - at the end of the payment
period, the buyer owns the property. If there's some hiccup, title remains
with the seller. Even with a Contract for Deed, you should still record
the transaction with your registrar of deeds.

Talk to a real estate attorney. It'll be the best $200 you'll spend.

And by the way, it's a form 1098, not a form 1099 that's filed.  This is not
necessary, anyway as long as you report the income on your taxes and they
report the interest on theirs.  The tax form has a place to report mortgage
interest that wasn't reported on a 1098 form.

Tom G- Hide quoted text -

- Show quoted text -

Thanks, I should have remembered it was a 1098, but it was very late
when I posted.

I will be recording the mortgage just to establish an extra legal
basis if there are ever any controversies. Since it is my daughter
and son-in-law, they will just be paying into my and my wife's estates
when that time comes if they have not paid off the loan. For those
who cautioned me about all the pitfalls, believe me, I am well aware
of what can and frequently does go wrong in family relationships.

Bob H
.

Relevant Pages

  • Re: Diabetics and Suffering : Musings on a Sunday Afternoon
    ... fear with a new employer and their medical insurance, the reporting of our illness to DMV, mortgage, loans etc....the frequent visits to our drs/endos, the label reading on every food product, portion control, telling/not telling others of our disease, and the fingers crossed that we can keep the complications at bay. ... One question though, why report our ... illness to the DMV unless we are applying for a job that involves ...
    (alt.support.diabetes)
  • Re: OT -Need to file a private mortgage??
    ... someone asked why we were bothering to plan to record the mortgage ... the transaction with your registrar of deeds. ... report the interest on theirs. ... The tax form has a place to report mortgage ...
    (alt.home.repair)
  • Re: Mortgage Fraud at All-Time High
    ... Mortgage fraud at an all-time high ... NEW YORK -- The number of reported incidents of mortgage ... fraud has reached an all-time high even as the number of home loans ... according to a report released Monday. ...
    (misc.survivalism)
  • Re: Almost 2 in 100 homes in foreclosure process
    ... U.S. mortgage foreclosures at record high: ... A record number of U.S. mortgages were somewhere in the foreclosure ... those loans with payments that were more than ... through early 2009, said the report, co-authored by Mark Zandi, chief ...
    (misc.survivalism)
  • Re: Almost 2 in 100 homes in foreclosure process
    ... U.S. mortgage foreclosures at record high: ... A record number of U.S. mortgages were somewhere in the foreclosure ... those loans with payments that were more than ... through early 2009, said the report, co-authored by Mark Zandi, chief ...
    (misc.survivalism)