Home Buying in Fairway Prk>Question Details

Spartyjoe, Both Buyer and Seller in Lansing, MI

Can I buy a house from myself? I have a home, from before I was married, on splittable acreage. I have split the acreage into a lot with the house,

Asked by Spartyjoe, Lansing, MI Fri Jun 11, 2010

and two vacant lots. However my mortgage still has a lien on the two lots. I want to purchase the home on the lot with my now wife. I want this to be a purchase, not a re-finance. Is this possible?

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Start with Bryan LeBards answer and Ill take it from there...

There are many reasons to NOT do this, I advise going back to your land use guy and have him recommend an agent or tax/real estate attorney to discuss better ways to do what you are are trying to do. (Establish a non-recourse loan, reset the tax base, offset or reallocate costs, et al.)
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Fri Jun 11, 2010
Why do you care if it is a purchase or a refinance?
0 votes Thank Flag Link Fri Jun 11, 2010
One issue that would not be an arms length transaction and a lender will not finance that. I would explore this with a local agent that has experience with lot's and land. Is there a reason to pursue a purchase and not a refinance?
Web Reference: http://www.loansquawk.com
0 votes Thank Flag Link Fri Jun 11, 2010
Why do you want this to be a purchase, not a refinance? With a purchase, you'll have to get new financing anyway.

In fact, what's your ultimate objective. I have the feeling--no offense intended--that you may be overcomplicating this.

And did you have legal counsel as you were splitting the acreage? The reason I ask is that you probably violated your lender's due on sale clause when you did that. If you split the acreage, but the mortgage still applies to the two other lots, then you've diminished the lender's equity--its security--protecting the mortgage.

So, see a lawyer for the best way to accomplish what you want.

And, sure, technically it's possible to buy a house from yourself. You could set up an LLC and either (1) transfer the existing house into the LLC, then purchase the LLC, or (2) deed the property from yourself into your LLC. And there are other ways, as well. But, again, I'm concerned that you may be making this more complicated than it really has to be.

So: Consult a real estate attorney.

Hope that helps.
0 votes Thank Flag Link Fri Jun 11, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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