NA...Home selling nightmare

Kenny Phillips said:
You will reach a point where you really can't go "onward and upward", but the "cash out" home sale exemption is pretty generous. I know that I'm living in the largest house I'll ever own. The next one will be smaller, less expensive, and in a warmer climate.
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There's nothing in the home sale exemption that has anything to do with "cash out." You can have a capital gain even if you have to bring money to closing.

Residential properties don't have a "rollover" exclusion any more (it went away two decades ago).

Investment/business properties have a way to defer tax on like kind exchanges, but that's different than being excluded outright and there are lots of restrictions (including not taking any "boot" from the sale).
 
flyingron said:
I wouldn't even take a gift of property from my sainted aunt without owner's title insurance. You have no assurance of whether you own the property without a proper search and the insurance to back it up. The lender will certainly want it, but the lender's policy won't necessarily protect YOUR interests.
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Title insurance is relatively cheap, a fraction of a percent of the loan value. I had enough down to negate the requirement, but got it anyway due to some of the home's history.
 
One year+ would typically qualify for long term vs. short term capital gains.
IIRC, it's 2 of the last 5 years as a primary residence before you can avoid capital gains altogether.

This thread may need deleting...
 
Kenny Phillips said:
I got my house because, of the three offers, mine was "as-is". (I had the results of two inspections, plus my inspection.)
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Ours was similar... 30% down, as is, close in 15 days... but our offer was $15K less than the others... the seller was doing a 1031 exchange and needed to move a quick..
 
flyingron said:
I wouldn't even take a gift of property from my sainted aunt without owner's title insurance. You have no assurance of whether you own the property without a proper search and the insurance to back it up. The lender will certainly want it, but the lender's policy won't necessarily protect YOUR interests.
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The lender requires YOU to take the policy... again, they want THIER interest protected at YOUR expense.. they also require a termite and pest inspection... even thought this is not a requirement from the state, county, or local government.. Our local city has a new inspection, the sewer lateral... seems that many homes that were built has the tar papered compresed cardboard sewer line put in when that was a legal code at one time.. wonder whose BIL on the city council owns an inspection company
 
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That's what I send, the lender wants a policy to cover their risk (everything with regard to the loan is at "your expense" in the long term).
Still that doesn't change the fact that I feel owner's coverage is a very important thing to have.
 
As the psalms say "The borrower is servant to the lender."
 
Skyrys62 said:
One year+ would typically qualify for long term vs. short term capital gains.
IIRC, it's 2 of the last 5 years as a primary residence before you can avoid capital gains altogether.

This thread may need deleting...
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Geez guys, settle down. I was generalizing. Some houses were 13 months, some were 8 years (hence the “year+”). This current house was 6 years.
 
Not worked up, just a subtle hint that it could be seen by the wrong person. We saw what 'can' happen with 6PC's post, and he was just joking around.
 
Skyrys62 said:
Not worked up, just a subtle hint that it could be seen by the wrong person. We saw what 'can' happen with 6PC's post, and he was just joking around.
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Its all good...I started the buying/selling before the tax law changed, and I was updated on the law as I was in the process of a home renovation many years ago.
 
So believe it or not, I closed today. But...true to form, Mr. PainInTheAss was...um...lets just say "predictable".

So I requested I sign papers in a different room, which I did. Then the sellers for the home I'm buying came in, and we signed those papers too, while supposedly my buyer signed his papers...except an hour goes by, then two...the whole time, I can hear yelling coming from down the hall. Literally, a good hour+ of yelling. My realtor keeps sticking her head in our room, apologizing for the delay while looking like she was going to cry. Things would quiet down for awhile, then more yelling. Finally, after about 2 1/2 hours, the owner of the real estate office asks me to go to his office...Now I'm thinking, 'Oh boy, here we go with him saying I need to listen to my buyer's offer to renegotiate'...but the guy proved me wrong. He was very professional, said the issue was with my buyer, but not my issue what-so-ever. He also said they came to an agreement, between him, my buyer, and the buyer's agent, to get my buyer to sign. Turns out, my agency, and the buyers agency, each agreed to give him $1500 to close.

Who says being an ahole doesn't pay...
 
wow - who would have ever guessed being rewarded for bad behavior would have life-long consequences?

Congrats and glad you got it closed!
 
Keep the deposit,and let him come to you.
 
Congrats.
Always feels great to walk out when it's final. Especially after that craziness.

So now, on to the plane upgrade!
 
tawood said:
So believe it or not, I closed today. But...true to form, Mr. PainInTheAss was...um...lets just say "predictable".
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Congrats on the closing, but (and I hate to say this), I bet this isn't the last you'll hear from this guy. Hopefully all the i's were dotted, and t's crossed, in a way that makes any post-sale complaints of his a non-issue.
 
LoneAspen said:
Congrats on the closing, but (and I hate to say this), I bet this isn't the last you'll hear from this guy. Hopefully all the i's were dotted, and t's crossed, in a way that makes any post-sale complaints of his a non-issue.
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Thanks, and I said those exact words to my girlfriend last night....
 
Selling house A, buying house B
Closing for house A is in the morning, B a few hours later. I needed the big check from A for my down payment on B.

The buyers of A were nice enough, no problems. Both were PHD psychologists or something like that. We get to closing and find out that they did a "Mortgage in a box" thing where all the paperwork is delivered directly to the closing. They had not seen anything ahead of time.
I don't remember the exact numbers, but mortgages were running, say, 10%ish.

Paperwork is going round, all is going well, then we get to the "Truth in lending" paper that came from the mortgage company. It says the interest rate is something like 16%.
Everything stops.
Oh, ****. What is going to happen if I can't close on A - how will I close on B? I managed to keep the string of bad words silent in my head.
Buyer is confused about the numbers. "I paid x points to have the interest reduced to 8%ish why does it say 16?" (Also, it turns out that they had signed up for a one year balloon note.)
Ummmm....
I point out that the calculation on the TIL paper adds all the fees, points, etc. to the actual interest to come up with that number.
"But are we still getting the 8% we paid for?"
"Ummm, Yes"
"Oh, ok."
And they continue to happily sign documents.
I just sat there quietly with my mouth hanging open not believing what just happened.
 
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