Parents sold me home for 100k more than they paid.: 60k from capital gains was used for the down payme

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Discussion Topic: Parents sold me home for 100k more than they paid.

bestdays

07-11-2012 @ 4:31 PM

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60k from capital gains was used for the down payment.

Does this make sense in any scenario?

Parents had sold a home and needed to spend 60k on real estate for capital gains?
The 60k was used to pay the down payment for the house they were helping me get with the variable rate loan. It went from 174 to 274k approximately from 2001-2005 where it was sold to me.
The math made no sense to me and they argued with the question but you have to pay to live somewhere.
The payments got higher than I could afford. The parents blame me for the rate going so high because at a point only the interest only payments were made.
The question is was it the best mathematical choice to foreclose?
I'd be paying $1600 a month for a place that rents for $1300.
The home was sold at auction for $116 and purchased for $165.
At 165 you are able to get a fixed payment under $1000?

Scintillion

07-16-2012 @ 4:03 PM

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Sounds like you may have gotten a home that was too expensive. Makes sense to spend the 60K in a real estate purchase to avoid capital gains tax - however the execution and variable rate loan sound a bit off.

http://www.skihomesonline.com

ForeclosureHome

09-20-2012 @ 2:06 PM

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With fixed mortgage rates less than 3.5%, there is no
reason to get a variable rate mortgage. That only gives
the bank the option to increase your payment. Here is
how increasing interest rates affect a mortgage:

Loan $165,000 Rate: 3.5% Term: 30 years PAYMENT:
$740.92
Loan $165,000 Rate: 4.0% Term: 30 years PAYMENT:
$787.74
Loan $165,000 Rate: 5.5% Term: 30 years PAYMENT:
$936.85

See how just a few percentage points can make a HUGE
difference in a mortgage payment.

Find the best real estate
opportunities visiting
http://www.foreclosuredeals.com

This message was edited by ForeclosureHome on 10-10-12 @ 11:18 AM