Can I buy my house back for a dollar?

What is the name of your state? Iowa

Please help**************......

A friend of my wife's recently won a lawsuit and would like to payoff our home (the loan payoff is around $330,000). She would then show ownership of the home and have possession of the deed. Can we buy the home back from her for a dollar, so we can have the deed back? What taxes are there, and is this something that can actually happen. She would give us the money to pay it off, but then we would have to pay the gift tax. We are just trying to avoid paying taxes.

Thanks for all your help.

Charles

[HomeGuru]

Originally Posted by badlanz

What is the name of your state? Iowa

Please help**************......

A friend of my wife's recently won a lawsuit and would like to payoff our home (the loan payoff is around $330,000). She would then show ownership of the home and have possession of the deed. Can we buy the home back from her for a dollar, so we can have the deed back? What taxes are there, and is this something that can actually happen. She would give us the money to pay it off, but then we would have to pay the gift tax. We are just trying to avoid paying taxes.

Thanks for all your help.

Charles

**A: we have no idea what kind of lame scheme you are attempting but in any case post on the Tax Law forum.

[nextwife]

Are you nuts?

If she wants to lend you money to pay off the mortgage, no mickey mouse schemes to deed back and forth should be necessary! She'd simply have a new lender's policy issued, insuring her as lender, have the proper mortgage documents drafted through an attorney and have him prepare a closing statement, and the mortgage closed and dsibursed through a title company, with the new mortgage replacing the old one.

Don't even think of doing anything such as you described. And do use an attorney of your own for whatever you do work out.

Sorry, but here is a little more info......

This woman is my wife's best friend. She was burned badly from head to toe in a fire over 15 years ago. She has won numerous lawsuits and would just like to help us out by paying off our house, so I can run my own business and quit my day job. My wife would then be able to raise our 4 year old without having to go back to work. My wife will be out of a job on Aug. 8th. after working for almost 20 years there. We have a 9 month severance package but runs out May '05. We have extreme credit debt, and struggle daily. You could just say my wife's best friend is a "guardian angel" to us. We are VERY fortunate to know her.

Again, she wants to buy the house, and sell it back to us. But I don't think she can give it back to us, because of gift taxes, etc. How can we all avoid paying taxes, and without having the IRS down our necks. We obviously want to do this legally. But we want the deed back. We're not setting this up as a loan. Please understand, I'm totally ignorant when it comes to taxes.

Thanks again for your quick response!

Charles

Whoops. I'll move this to the Tax Law forum. Thx.

[HomeGuru]

Ok****************************