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Family backed Mortgage Refinance

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SGLRefi

Junior Member
What is the name of your state (only U.S. law)? Arizona

We are refinancing our current mortgage and a family member will be holding our new mortgage. We are completing a Note and recording a Deed of Trust for the amount of the new mortgage. We are worried about the possible tax implications and how to pay off the existing mortgage. Can the family member simply send us the check for the payoff then we submit a check to the bank for pay off, should we have the check sent directly to the mortgage holder for payoff or do we need to get a settlement attorney involved to put the funds in escrow then have them payoff the mortgage?
Thank you for your help
 


tranquility

Senior Member
Any way you do it will be fine. Some ways would be easier to explain or wouldn't require an explination if audited, but there is no problem with any of your plans.
 

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