why would someone do this Re: buying/selling a hou

[jillybean]

Maybe MM can shed some insight...

My cousin just got engaged to her real estate agent. She was looking to buy a home almost a year ago, put in a couple bids but didn't buy for whatever reason. during that time they began dating and recently announced their Engagement. The other day my aunt called my grandmother and told her my cousin closed on her first house. Yay!

Here's where it gets strange: my cousin's fiance sold her his house to her, she will add him to the deed once they're married.
So, is there some legit reason why they would do this? Or is this some type of scam he's pulling?.I'm very suspicious...

I'm really curious if I'm missing something here. she's having an open house next month and I'll see it then and meet her future husband as well.

[Deleted]

Maybe they wanted to refinance for a lower rate/shorter term it but weren't eligible.

[Deleted]

you think he's scamming her? It sounds suspicious to me too. How long have they known each other or have been dating? He may be selling his house to her and filing it as a business loss or unloading the debt so he can acquire more properties in his name. Maybe he just wanted to get rid of his house and that seemed an easy way. I hope she's paying fair market value!

[4speedy]

Well, if it's a legitimate sale, they are going to pay a lot in closing costs. And if it is a legitimate sale, I suppose he would be the listing agent so he would keep the commission, less the cut he owes to his broker. So it makes no sense to sell it, essentially to yourself, just to pay all the fees and end up where you started.

So the next logical assumption is that he did it as a short sale be ause he is upside down. Fiancée buys it as a much reduced price so the payment and taxes etc. would all go down. They get married, she quit claims him onto the deed and he has his Ouse back, at a fraction of what he owed on it.

yeah, it's a scam. No way around it.

[Deleted]

Jul 10, 2012 17:40:03 GMT -5 4speedy said:

Well, if it's a legitimate sale, they are going to pay a lot in closing costs. And if it is a legitimate sale, I suppose he would be the listing agent so he would keep the commission, less the cut he owes to his broker. So it makes no sense to sell it, essentially to yourself, just to pay all the fees and end up where you started.

NY allows dual agency, so I assume that the fiance is getting both commissions, which should cancel out the closing costs and possibly leave them some money.

If he wasn't eligible to refinance and had a mortgage at 6 or 7% and her credit was good enough to get a rate around 3-4% or less, this would be a way to get around their inability to refinance.

[jillybean]

Sorry I posted and ran but my dog shredded two boxes of tampons. Grrr!

Ok, yes I think he is scamming her or at least scamming someone. They've known each other since November, began dating in February, engaged in May, wedding in October. he was the seller, she the buyer. I lost the wedding invite with her address so I can't check zillow to see the previous purchase price. I'm going to have to do some more sleuthing...

[jenjen]

Jul 10, 2012 18:01:49 GMT -5 jillybean said:

I lost the wedding invite with her address so I can't check zillow to see the previous purchase price. I'm going to have to do some more sleuthing...

Do you know the town or county that they live in? I'd google "x county assessors site" and usually you can search by last name. Ours shows sales price as well

[jillybean]

Jul 10, 2012 18:17:47 GMT -5 jenjen said:

Jul 10, 2012 18:01:49 GMT -5 jillybean said:

I lost the wedding invite with her address so I can't check zillow to see the previous purchase price. I'm going to have to do some more sleuthing...

Do you know the town or county that they live in? I'd google "x county assessors site" and usually you can search by last name. Ours shows sales price as well

Well, thanks so much for this information! I found the tax assor's office and did a search under my cousin's name but found nothing. Then I did a search under his name and found two properties listed under his MOTHER's name. One if them is the property she purchased.

[bunch]

I added dh to a deed before I was married. I wish that I had not, and we ended up fine. That's half of your house! And equity! Why would someone take that risk?

[bunch]

Jul 10, 2012 19:44:44 GMT -5 bunch said:

I added dh to a deed before I was married. I wish that I had not, and we ended up fine. That's half of your house! And equity! Why would someone take that risk?

eta I didn't read carefully. Ignore.