View Full Version : Can I sell my house on a deed for contract if I have a heloc on it
chittychitty
Aug 12, 2010, 10:05 PM
I want to sell to my son in az maricopa co. my heloc is far below the value of the home and he is making the payments plus additional principal.. I want to record the deed for contract but don't want to stir up any stuff with the bank where I have the heloc.. any advise will be well apreciated
chittychitty
Aug 12, 2010, 10:07 PM
Also want him to be able to write off interest on his taxes
Fr_Chuck
Aug 13, 2010, 05:25 AM
You and your son may set up a contract that he will get the home when it is paid off.
This does not sell the house to him, merely gives him a contract to buy the home once he has finished payments.
No he can not write off the taxes on a contract for deed. The loan is still your loan.
It is easier to refi the home with you and he as joint owners or he can merely get a new loan and pay off yours.
** which may not be possible if you are too upside down in loan
ScottGem
Aug 13, 2010, 05:42 AM
The only way the interest can be written off is with a mortgage. A contract for deed means the buyer doesn't own the property until the contract is satisifed.
Why doesn't he just buy it from you? If he has a credit issue, you can make him a mortgage loan.
chittychitty
Aug 13, 2010, 10:49 AM
Thanks so much I will take those options into consideration.