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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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question about getting out of contract
Background:
I am buying my aunts house.
My brother is looking into buying property and then building a new 2 family home for him and our aunt.
I want to sign the contract with my aunt before the 30th in order to gain the tax credit.
What if the deal doesnt work out. is it simple to get out of contract. everyone keeps telling me its family so dont worry. But what about money in escrow.
Do i start the mortgage process ( i feel like if i get to many people involved and then it doesn't work it would make it harder to void.
Any advice
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Posted 4/28/10 2:35 PM  |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: question about getting out of contract
Just cause its family doesnt mean getting out of a contract is easy.
In a normal real estate contract the only way to get out of the contract and get the deposit back is due to failure to get a mortgage. You can walk away from the contract but be prepared to lose your deposit if it is for any other reason than the mortgage clause.
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| Posted 4/28/10 2:40 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about getting out of contract
that is my concern. Before I do anything I want to make sure its so called "ok" to void the contract
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| Posted 4/28/10 2:42 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: question about getting out of contract
my thoughts
I wouldn't put money is escrow- no law says you have too
go into contract for the $8k credit
start the mortgage process- (kind of should have been done already)
but the best way to get out of the contract is a mortgage denial letter
doesn't have to be true either
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| Posted 4/28/10 2:49 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about getting out of contract
so you dont think it would be a problem to get out of the contract.
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| Posted 4/28/10 3:04 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: question about getting out of contract
nope....if that time comes I will tell you exactly what to do
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| Posted 4/28/10 3:14 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: question about getting out of contract
I dont think you can get the credit if you are buying from family
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| Posted 4/28/10 3:33 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: question about getting out of contract
you can't get the tax credit if you are buying from a family member
you don't qualify for it anyway
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| Posted 4/28/10 3:44 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about getting out of contract
why can't you get the tax credit if you are buying from family???
How do they know?
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| Posted 4/28/10 9:32 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: question about getting out of contract
Posted by jillee03
why can't you get the tax credit if you are buying from family???
How do they know?
its the rule the IRS set forth so that people don't buy family members homes for a very low price just to get the $8,000
they know because you have to include your closing documents, and the law states your not allowed to apply for the first time home buyers credit if you buy from a family memeber. no CPA would file for this knowing the law, and if you file it yourself, they will deny you
they take 3 months to issue the refund while they check out that all the info is legit and you didn't buy from a family memeber
besides- aren't you trying to get out of contract? if so, it doesn't matter anyway
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| Posted 4/28/10 11:09 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about getting out of contract
Thanks for this information.
I did read on the site. So i guess signing the contract at this point is not worth it.
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| Posted 4/29/10 7:02 AM |
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