Posted by Ceci, CA on 12/23/04 10:52am
Msg #14420

gift equity

Has anyone done a signing on gift equipty purchase? If so, are there any special docs. that need to be signed and notarized? Thank you for your feedback in advance.

Reply by PAW Notary Services on 12/23/04 11:52am
Msg #14428

I'm not familiar with the term "gift equity". If you are talking about a purchase with a "gift" being applied to the purchase, there's no additional documents other than the funding from the "gift" usually has to be in place prior to the closing. The gift should appear on the HUD in the amounts paid by or on behalf of the borrower/buyer.

Reply by Dave H on 12/25/04 8:33am
Msg #14508

Gift Equity Paul is where I sell my 150,000 home for 125,000 to you but show the 150 on the contract. I gift to you the equity I have in the home in this case 25k. Usually found in a non arms length transaction.

Some lenders are ok with it some are not. There should be no extra paperwork for the signing agent, however, there might be a letter that the giver of the gift has to sign saying it really is a gift and not a loan as the lender does not want a second in place.