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Financial Planning / Tax Strategies
|Subject: Re: Capital Gaines on sale of house||Date: 10/9/2001 11:44 PM|
|Author: Charlie48K||Number: 54498 of 122904|
"Futures Home Assistance Program has agreed to provide buyer acquisition cost assistance of 6 Percent of the purchase agreement price which equals $5,715.42. FHAP uses it's own funds. No portion of this GIFT has come from any person or entity with an interest in the sale of this property, including the Seller, Real Estate Agent or Broker, Builder, Loan Officer or Mortgage Company, or any entity associated with them.
No repayment is required for this gift.
* The seller must agree to participate in Futures Home Assistance Program
Ok. First, I'm not a lawyer, but I am an auditor. This raises huge warning flags. First, it's not a "gift." Gift's do not require performance by any party to the gift. You are a party to the gift to the borrower, he gets the "gift" only if you perform. It's income to him and a selling cost to you.
HUD has a program to help people buy homes. The intent is for a charity or other person to help with the down payment without repayment. This "gift" seems to be structured to try to meet that downpayment requirement and then get the money back from you. If this is legal it certainly doesn't seem to meet the intent of the regulations.
I wouldn't touch it.
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