Money Issues???!!!

Asked by Jhr1984, 06704 Wed Jan 13, 2010

I think my parents may have made it impossible for my wife and I to buy our first home. They deposited $10,000 into our son's savings account thinking we could then take the cash out to refinance our car and it never touch our bank account. We don't know what to do now. We think this may have made it impossible for us to buy a home. We are so lost. Help??? What do we do? What should we do?

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8
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Thu Jan 14, 2010
Jhr1984

Follow Bill's advice and you'll be fine. The lender/LO you're currently/will be working with should/will know this as well. Its routine.
0 votes
Dawn Nostin, Agent, Glastonbury, CT
Thu Jan 14, 2010
This is something you should discuss directly with your mortgage broker, if you do not have one, call Kim Price 860-841-4454. She is the owner of Custom Mortgage and hasbeen in business for over 23 years. If I can help please call me at 860-202-6145. Your question is something that should be answered in person rather than on the computer.
0 votes
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Wed Jan 13, 2010
Just show a paper trail from your son's account to yours. As long as it's FHA, a family member can gift to another during the purchase of a home. Have your son make a copy of the check he's giving you and obtain a receipt of the deposit. You may also have to get a gift letter (standard form) from the lender to have your son sign it. If your son is young (under 18), have the money transferred back to your parents and then have them gift you and follow the same process. No worries.
0 votes
Don Tepper, Agent, Burke, VA
Wed Jan 13, 2010
I'm missing something here, as are the others who've answered.

Though I'll add that something really stinks here. If your parents wanted you to be able to refinance your car, then why didn't they give the money to you? They were obviously trying to accomplish something by using your son as a middleman (or middlebaby, as the case may be). And they just outsmarted themselves. So your son now has a $10,000 gift. If you're the child's guardians, you can use the money as you wish.

And something else stinks. Usually, if someone receives a windfall of $10,000 that makes it easier, not more difficult, to buy a property. As Nancy mentions, in some cases a gift letter might be desirable to explain the source of the income.

Talk with a good mortgage broker. And be honest. Somehow, I'm getting all the wrong vibes from your scenario.
0 votes
Jhr1984, Home Buyer, 06704
Wed Jan 13, 2010
This was and wasn't so to speak given to us. It never touched our bank account. They thought it was smarter of them to put it in our son's bank account so we could then take the cash to refinance the car. That is where the problem is.
0 votes
Nancy Doyle, Agent, Cape Coral, FL
Wed Jan 13, 2010
Hi Jhr1984,
Hi, Not sure why you are stressing... You can always have gift letters etc.. Call a Mortgage broker they would be happy to help you straighten it out. Its a great time to buy...best of luck!
Have a great night,
Nancy

Nancy Doyle
239-209-2237
nancy.doyle1@comcast.net
http://www.nancyd.listingbook.com
Web Reference:  http://www.nancydrealtor.net
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Jan 13, 2010
How old is your son--and did your parents mean to deposit in his account or did they want the deposit in yours---Rather than sweating, why not visit with any qualified loan officer(s) and see exactly what your budget can handle and check that credit score--then take it from there.

Anna
0 votes
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Wed Jan 13, 2010
I am not totally understanding what you are talking about. They gave your son a gift of $10,000. What is it that you want to do with your car, use that to lower your loan amount, therefore lowering your debt? It is not going to make it impossible for you to buy a home, unless you are in the process of doing it right now. This is something that might work out better discussing over the phone, so that you can explain exactly what is going on. If you would like to contact me, I would be happy to advise you about financing. Either call me at 516-972-1687, or e-mail me through the Trulia profile.
0 votes
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