Creative financing

Can you buy a home and have the previous owner keep their name on the deed, to keep lower taxes? Is this legal, and of course this is with their permission...what kind of incentive would you give the previous owner for doing something like this?

Share your creative financing ideas!

Edited: 06/26/2010 at 04:59AM

P NW

· OR

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Icon_minipost Apr 06 '08, 05:09 AM

If the previous owner kept his name on the deed, he'd still be the owner.

I don't see any problem figuring out his incentive, but I can sure see a problem with yours. Why would you want to give him a lot of money and leave him as the owner of the house?

Here's the thing about taxes: you have tp pay them. The county has your house held hostage, so paying taxes isn't something that is optional.

A few states have a homesetead exemption for owner occupied, and a couple of states don't raise your taxes after they adjust upward the one time for the new purchase price. Other than that, get out your check book every year.

Edited: 06/26/2010 at 04:59AM

Alex W

Real Estate Investor · San Francisco, CA

51 posts
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Icon_minipost Apr 07 '08, 01:30 PM

I would try to have the property reassessed. I know several people that have saved significant money on having their properties reassessed due to the decreasing property values.

Do more research as there might be a loophole you can use to have the property taxes lowered.

Edited: 06/26/2010 at 05:00AM

Jimmy Tsai

6 posts

Icon_minipost Apr 07 '08, 07:56 PM

I agree with the above. I know in some places you can challenge property taxes. I.E. decreasing property values in the are or the house might need some repairs. Also look up comparable houses in the area and see what they are paying.

Edited: 06/26/2010 at 05:00AM

Whitney Blaine

· CA

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Icon_minipost Apr 08 '08, 03:53 AM

The reason why I asked is because I know someone who is doing this. Both the previous owner and the new buy are on the deed. The new buyer pays the old taxes. I just wanted to know it it was legal and why someone would be willing to do that.

Edited: 06/26/2010 at 05:01AM

Tim W.

Real Estate Investor · Indiana, Indiana

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Icon_minipost Apr 08 '08, 12:36 PM

I met a Chicago attorney who had a practice that was specifically and exclusively designed to lower people's property taxes. Maybe there's one in CA?

Edited: 06/26/2010 at 05:01AM

Bob McIntosh

Real Estate Investor · Hoboken, New Jersey

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Icon_minipost Apr 08 '08, 07:21 PM

Originally posted by "TimWieneke"

I met a Chicago attorney who had a practice that was specifically and exclusively designed to lower people's property taxes. Maybe there's one in CA?

There are attorney's who claim they can do anything for anyone, anywhere. The real trick is finding the 1 who can ACTUALLY do what you need, in the area you want...

I would imagine there are attorney's that can do that, but I would make sure to get a nice long reference list and check them all personally... Maybe also ask for some examples that the attorney has done as proof... If s/he is legit then they shouldn't have a problem with any of that...

Edited: 06/26/2010 at 05:01AM

Matt Brown

Real Estate Investor · Colorado Springs, CO

17 posts
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Icon_minipost Apr 09 '08, 02:00 AM

Depending on how much the lawyer saves you... Would paying him/her be worth it? Take that into consideration before you throw down those benjamins!

Edited: 06/26/2010 at 05:01AM

Alex W

Real Estate Investor · San Francisco, CA

51 posts
1 Award

Icon_minipost Apr 09 '08, 05:47 AM

I would even try negotiating with the assessor's office directly. You can do a compromise with them. Maybe structure it by lowering the taxes for a certain period of time till you sell the property to someone else.

Edited: 06/26/2010 at 05:01AM

Eric Wang

Real Estate Investor · San Jose, California

228 posts
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Icon_minipost Apr 11 '08, 03:10 AM

Originally posted by "littlelady"

The reason why I asked is because I know someone who is doing this. Both the previous owner and the new buy are on the deed. The new buyer pays the old taxes. I just wanted to know it it was legal and why someone would be willing to do that.

I have also heard of this also. When you assume the first and get a second loan from the seller, you would have 2 deeds of trust. One for each of the two loans. Deed of trust is a collateral to the seller should you ever default. The deed of trust never gets recorded. Please correct me if I'm wrong but it's something in that neighborhood.

Edited: 06/26/2010 at 05:02AM

P NW

· OR

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Icon_minipost Apr 11 '08, 09:31 PM

Go down and talk to the tax assessor in person, because I am pretty sure that in Caifornia, you get re-assessed when the way the title is held is changed, even if the old owner is one of the people remaining on the title (with the exception of spouses).

Edited: 06/26/2010 at 05:02AM