What is the name of your state?What is the name of your state? Tennessee
My parents bought their home for 80,000 about 3 years ago, and still have 30,000 left to pay on the mortgage, but cannot make the high payments. They want to have us loan them the 30,000 now, so that they can pay off their current loan in full. Then, they will continue living in the house, and pay us that amount back with interest over a longer period of time (thus basically having lower payments).
My question is, also in return for us loaning them the money now, they want to quit-claim the deed over to me, basically in case somehow they end up not being able to pay off the money I'm loaning to them for this. Once they finish repaying us the loan, I would quit-claim the deed back to them. What tax implications would that have to me (and them for that matter). The property was recently appraised for 100,000, if that matters.
My parents bought their home for 80,000 about 3 years ago, and still have 30,000 left to pay on the mortgage, but cannot make the high payments. They want to have us loan them the 30,000 now, so that they can pay off their current loan in full. Then, they will continue living in the house, and pay us that amount back with interest over a longer period of time (thus basically having lower payments).
My question is, also in return for us loaning them the money now, they want to quit-claim the deed over to me, basically in case somehow they end up not being able to pay off the money I'm loaning to them for this. Once they finish repaying us the loan, I would quit-claim the deed back to them. What tax implications would that have to me (and them for that matter). The property was recently appraised for 100,000, if that matters.