Would You Buy This House?

My husband and I are in a similar situation, a few years ago he was seriously hurt and has had several surgeries and will have to have several more. When he was hurt our income changed drastically, and we lost almost everything we had. Our credit was ruined , his mother has excellent credit so she can get a really low intrest rate, my husband ,recieve's a weekly check from the insurance company and he also recieve's disability {social security} we've been discussing with her about helping us get a house,because she has excellent credit she can get a .really good intrest rate But I have discussed with her about going to an attorney and have a contract written. I want it to say that we .are responsible for all repairs and we are responsible for the home owner's insurance and all taxes on the property. The good. thing for her is she willl be able to claim it on her taxes, so it's like an investment for her. We also want a quick claim deed. Also. Something very important that you need to do is go to an attourney and have them draw up a document that's called a survivorship so in the event you pass away the house will be protected. Because even if you leave it in your will if you have other children the can contest it and try to sell that house because it would be considered an asset. . My sister and her husband have done this. My sister was hurt and had to stop working unfortunately it was the same time her house was adjusting out and was due for the ARM to adjust and because she couldn't work the bank would not work with her on refinancing, so her father inlaw put it in his name and made sure that there was a survivorship document drawn up so there would be no problems in the event of his death .It's a good thing he did that because his oldest son try to go after my sister's house. It seems like your daughter and son inlaw are very responsible and if so I don't think you'll have a problem but i do think that if you decide to do this you do need to go to an attourney and make sure you have the documents drawn up. It worked out great for my sister and her husband. If you do help them I would make sure that I saw all their bills and all their income to make sure they can afford the new payments,if they can't maybe they can downsize a little and you could help them get a better interest rate. But i would definately make sure i saw all their bills and all their income,and you shouldn't feel like your intruding they are asking you to help and that's alot. I'll make sure I say a prayer for ya'll. My husband and I are in the same situation,we're asking his mother to sign the mortgage paper's for us. We have a set income and can pay the payment if she signs because she can get an excellent rate so we would be able to qaulify for a much better loan, than if we tried on our on, due to him being hurt our credit was ruined. A positive way to look at it is you can clzim it off on your taxes....it could be considered a vacationhome. But again I would look at all their bills and income to make sure they can make the payment and i would tell them that if they were late. once i would put it up for sale. Good luck in the decision you make no matter what you decide to do it will be the right thing Your in my prayer's Lisa.

On 12/10/2013 Retired08 said:

On 12/10/2013 gazelle77 said: I would ask Suzy Orman.

That's not a bad idea. I wonder if she would answer me if I sent an e mail?

I haven't read the rest of the thread yet so maybe someone else said this: it's worth a try. You wouldn't lose anything by trying.

ok--again, I haven't read all the responses but here's mine anyway:

If their house is large enough, any chance you move in with them, put their house in your name, and you assume payments? I suggest this because 1) It sounds like there's room enough for both families and 2) that way your daughter's family wouldn't be displaced.

Along with the suggestion that you take over the payments, the house should be put in your name because if you take the burden of debt, you deserve the "reward" of ownership. Heck, they could sell it to you for whatever the balance they owe; it doesn't have to be a huge amount.

Of course the wild card in this is how well both families would get along. I live in smallish house and my sister lives with us. Even though my house is a little small, there's plenty of room for the 3 of us and that's an important factor: everyone needs their own space and privacy.

I just read Deanie's post #48 and I agree completely

Good luck to you.

I read some of the thread, but not all of it. So I don't know if this is mentioned or not. If you buy the house and rent it out to them, you would have to claim that as income I believe. Would that affect your social security? I know if you don't wait long enough, you can only make so much money. Just a thought...

I know my kids wouldn't ever ask me to do this. They know I wouldn't, so why bother.

On 1/17/2014 mima said:

I read some of the thread, but not all of it. So I don't know if this is mentioned or not. If you buy the house and rent it out to them, you would have to claim that as income I believe. Would that affect your social security? I know if you don't wait long enough, you can only make so much money. Just a thought...

I know my kids wouldn't ever ask me to do this. They know I wouldn't, so why bother.

There is not a limit on income with Social Security Disability Insurance benefits. (SSDI). http://www.ssa.gov/pgm/disability.htm There is a limit on resources and income with SSI. http://www.ssa.gov/pgm/ssi.htm

You need your own independent legal advice, not theirs. What you describe is a lot of ifs, ands, & buts. Better safe than sorry. Talk to your own real estate legal expert.

On 1/17/2014 nutmeg3 said:

On 1/17/2014 mima said:

I read some of the thread, but not all of it. So I don't know if this is mentioned or not. If you buy the house and rent it out to them, you would have to claim that as income I believe. Would that affect your social security? I know if you don't wait long enough, you can only make so much money. Just a thought...

I know my kids wouldn't ever ask me to do this. They know I wouldn't, so why bother.

There is not a limit on income with Social Security Disability Insurance benefits. (SSDI). http://www.ssa.gov/pgm/disability.htm There is a limit on resources and income with SSI. http://www.ssa.gov/pgm/ssi.htm

She said "limited income", so I thought she meant social security, not disability. Aren't they different? You have to work longer in able to collect SS and make as much money as you want. Seventy something? Too lazy to look.

That's what I was referring to. Maybe I'm wrong on that, but something to check into.

On 12/10/2013 GracieB said: No. Your SIL has already lost part of his salary. He could lose more or even his job. The. What would you do? It is great they haven't asked you for anything before but this a HUGE risk for you and not them. You would be stuck with the payments not them. Yes you will disappoint your daughter but if she doesn't understand why, then she is being selfish. She is asking a lot and putting you at risk for losing your credit, which would be the least if your worries.

ITA ... your daughter is being very selfish ... you are at a point in your life where you must think of yourself ... your daughter is certainly not thinking of you ... she can rent an apartment or a house and be perfectly fine ... life happens to all of us ... she will get through this even if she has to settle on something a little below the standards that she has set for herself ... your granddaughter will be fine ... this is my opinion ... I would never ask my parents to do something like this for me ... by the way I truly believe that Suzy would say NO.

On 12/30/2013 Retired08 said:

On 12/30/2013 PKB said: "Would you do this to help your children?"...........Yes

Thank you PBK. That's really all I was asking.

So, you really just wanted people to respond "yes" or "no" without offering any insight into their reasons or what they felt were potentially helpful suggestions to think about? I thought in your original post you said "Without going into too many details, I need opinions."

Maybe you already had your mind made up to begin with? Sorry, but your statement just makes it sound like you didn't appreciate posters taking the time to help you "think it through". Good luck with your decision.