<p>One of the section of the two forms asks if my family own any other real estate other than a primary home. But my situation is a little weird, my parents and I all live in New Jersey with my aunt and uncle because we couldn't afford a house when we first immigrated here. They are the one who own the house. So the NJ house is technically our primary home, it's the address we put down on any formal papers. </p>
<p>But about 4-5 years ago, we purchased a house in Philadelphia that is actually under my parent's own name. I want to indicate this house as "the other real estate" but I don't want to imply that we OWN our PRIMARY HOME..... </p>
<p>does anyone ever had similar situation like mine? </p>
<p>Actually, does Fafasa or CSS have their own contact information and do they respond quickly because I want to start this??</p>
<p>Your primary residence is where you LIVE. If you live with the aunt and uncle…THAT is your primary residence. It doesn’t matter if you own it, or not. </p>
<p>The other house is NOT your primary residence because YOU don’t live there. You MUST list that as “other real estate”. And yes, the equity in that other house will be used to reduce your need based aid.</p>
<p>OK, that’s what I thought. I was confused because it asks if we “OWN any other real estate than primary…” Thank you!</p>
<p>Oh, another question though… how do we know the equity and how much our house is currently worth? is it something we have to ask the mortgage company or is it an estimate?</p>
<p>You have to estimate what the house is worth. Your parents may have a good idea based on how long ago they bought it and what similar houses are selling for in the neighborhood. Neighborhood house sales may be on the internet in your area. The idea is to write what the house is worth if you sold it today-- not if you fixed it up and remodeled the kitchen, not the highest possible price if you waited six months for the perfect buyer to come along, etc. You have to be honest but, remember, this equity counts against you. </p>
<p>Equity is what the house is worth minus the amount owed on the mortgages. Your parents can call the mortgage company and find out how much they owe.</p>
<p>^ who checks on the accuracy of that estimate? What’s to stop someone from estimating their house is worth 300k when it might really be worth 400k?</p>
<p>Don’t use that calculator - it’s wrong…the market in almost the entire country took a deep plunge from 2008 to just recently. The calculator uses tables from 2006. The easiest thing to do is to ask a real estate agent friend if you have one. Remember the value you use is what you could sell it for QUICKLY, not 3 months or a year. Then you deduct any outstanding mortgage from that amount. What is left is the value. Some people use Zillow but unless there is tremendous real estate activity that is captured and showing of actual sale prices I’ve found those values wildly off.</p>
<p>itiu21, houses usually increase but, as momofthreeboys pointed out, most real estate in the country lost value in 2008 so your parents’ house may be worth less than what they paid for it. In my case, the calculator gives me a favorable number so I do use it. To recap, we’ve given you four suggestions for coming up with a value; choose the one that gives you the most favorable number: </p>
<ol>
<li>the calculator above</li>
<li>looking online for sales prices in your area-- If all the houses are different sizes, you can try calculating the cost per square foot of nearby houses and multiply by the size of your house.</li>
<li>Zillow</li>
<li>a real estate agent</li>
</ol>
<p>You may want to print out what you use and keep a record of it in case a school ever asks how you go the figure. (I’ve never had that happen.)</p>
<p>As long as the formula that you use is reasonable it is rare for it to be questionable! Obviously if you say your house is worth like $80.00 dollars they will call you out but the vlauation is often so subjective that if one method says $475k and another one says $490K it will be hard for school to care or accuse you of welfare fraud or something!!</p>