Sorry, another vent about family!

[peyjax]

BAD idea.....

People can only screw you like this when you actually hand them the screwdriver.

Great quote that really needs to be emphasized in this situation!!!!

 

[Wishing on a star]

Thanks!!!!
I swear, that just came out of nowhere...
I don't think I have heard or used that before!

OP, please talk to your husband, and even seek some professional advisement before this goes any further.

 

[peyjax]

Thank you all for your replies!

As far as her living in the house while it is on the market - We live in Michigan, 10 miles south of Detroit, houses here are on the market for an average of two - three years. Most likely what will happen is that in a year from now my sister and her boyfriend will buy the house on a short sale. We would rather let my sister live there and save money up for a down payment, ect, than let the house sit empty. She will take care of the lawn, snow removal, stuff like that. The house is actually in pretty good shape, new roof, new AC, new carpet and flooring. The only major concern I have is that it needs a new toilet. We will probally pay for it and put it in for her.



We did talk about renting it out, I had even put an ad on Craigslist, however we both feel better with someone we know staying there. I know that she likes the house and she lived with us for a while when she was teenager, so she is very familar with everything.

There is just so much that does not make any sense here. If the house is going to short sale or foreclosure why do you care who lives there?? In the mean time you could actually be getting real money to pay on the house. How can you know if your sister is going to buy it? You don't. It seems all crazy to me. Why would you put in a new toilet on a house going into a short sale? Do you actually realize how crazy this all sounds or are you just to close to the situation to see it?

 

[Wishing on a star]

There is just so much that does not make any sense here. If the house is going to short sale or foreclosure why do you care who lives there?? In the mean time you could actually be getting real money to pay on the house. How can you know if your sister is going to buy it? You don't. It seems all crazy to me. Why would you put in a new toilet on a house going into a short sale? Do you actually realize how crazy this all sounds or are you just to close to the situation to see it?

THIS:
The bolded above......

 

[Lisa loves Pooh]

Then should she be allowed to come in and out at her convenience and help herself to the stuff whenever she wants? So she gets a storage area for junk in what is now her sisters living area. The sis can just live with a room with junk, because hey, it's free? So you are saying, give her the house to take care of for you, and trust her to do that, and make it rent free..but with strings? That's something that should have been talked about before the plans for the sister to move in, and before the sister gave notice at her apartment. I think if I was the sister, I would find another place to live. I think this will cost her more than she thinks.

This is why a lease is necessary. It is more than just a promise to pay rent. It outlines the responsibilities of all parties.

As for using parts ofthe home for storage. Totally allowed!!!!! The owner can own the home and do as they please as long as it is stated in the lease.

As for coming in...landlords have rights to the property, but so does the renter. Our lease permits access with 24 hours notice.

The tenant has no rights here if there is no lease. As it is---they are just an extended houseguest.

If we couldn't find a tenant---we would have made use of our property as a vacation home for our own use before we'd let someone stay for free. Additionally---we wouldn't loan it to family either. That is just asking for trouble.

A tenant cannot demand anything as far as making the rental available until the first day of that lease.

The headaches of the OP may have not occurred if all the parameters of this agreement were spelled out in writing.

 

[The Mystery Machine]

I don't get why sis doesn't have to pay any of the mortgage or taxes, but the OP made that deal so it is what it is.

Agree there. The sister should be paying rent as there is no guarantee she will buy.

OP could put it in holding or something for her down payment or to close her mortgage gap. I think renting it may be the way to go if you are that far in the hole.

What if OP can't pay the mortgage and takes the house into foreclosure? Can you do that while owning another home? What does that do?

Furthermore, what bank will give you a mortgage for another house if you are 70,000 upside down on your home? That has to be an exaggeration.

I don't know anything about the mortgage loan business however this sounds like it could be a great thing or the worst thing to happen to the OP.

 

[hentob]

A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.

So you are planning on a payoff less than the balance due?

And someone is living there for free And these people that are living there for free are planning on buying it for the short sale price in the future.

So, who is paying the mortgage? The taxes? Are you paying the mortgage on two homes?

As for your sister and all of the other adults living for free in the soon to be short saled home, it sounds like a nightmare. How dare your sister yell at you! I would tell them all you had second thoughts and would like them to either start paying the mortgage, or please move out.

 

[Lisa loves Pooh]

A bank will let you buy a second home with or without a contingrency on the original home. WE are $70K upside down. The deficit is not realized until you attempt and succeed to sell the home. I am current on the mortgage, so our bank doesn't care. BUT---we bought our home with the assumption that we had to keep it and could not rent it.

So say our income allows us to buy one $1 million home. What we did instead is have one $500,000 home and then just buy another $500,000 home.
(made up values)

The lender will want to know the plans with the first home. Then it will be up to them to decide of a new loan is risky or not. If they have a selling contingency, they don't close on the new home unless the first one sells. YMMV depending on the situation. But we had no problems buying a new house because together, they do not exceed the maximum amount we could purchase if we bought one home with a higher price tag.

Agree there. The sister should be paying rent as there is no guarantee she will buy.

OP could put it in holding or something for her down payment or to close her mortgage gap. I think renting it may be the way to go if you are that far in the hole.

What if OP can't pay the mortgage and takes the house into foreclosure? Can you do that while owning another home? What does that do?

Furthermore, what bank will give you a mortgage for another house if you are 70,000 upside down on your home? That has to be an exaggeration.



I don't know anything about the mortgage loan business however this sounds like it could be a great thing or the worst thing to happen to the OP.

 

[DMRick]

I would totally agree, but it doesn't appear she said anything about using the house for storage (and she hasn't said she wants too..she just doesnt' have time to get the junk out). And it does appear she was allowing her to move in now. If she wanted it different, then she should have made that clear. She admits she is jealous of the help her sister gets from her mom..I'm not sure what that, or the fact that she had her child to mother him had to do with cleaning out the junk still left in the house. We aren't talking about a long time to clean it up..she says it's one room and that stuff will be donated or tossed.

I've never heard of a lease that allows the landlord to come in as they please without reason. For sure I wouldn't want to have a room in my home used for storage. I know I would never sign that.

That said, if it's going to be a short sale, why not just let it go as such now..why continue to put money in it. I think there must be more to it than this.

I've never been fond of 'gift's with strings, if they aren't laid out before hand. A lease prob would have been a good way to go, if she wanted to use part of it as a storage shed and have the right to come and go and tell her sister just how she can live in the 'free' house. For me, if I was her sister, it's too big a price to pay, to give up my privacy, even if given for free. I think the OP might want to rethink it and since her and her hubby have no time, pay someone to do the lawn, pay for the heat/lights and insurance herself and pay a realtor to stage the house for show and maybe get an alarm system so she doesn't have to worry about break ins.
Although that might come to more than the 'free' rent.

And I'm still wondering where mom and other sis are going to live. Are they a part of this?

I'd run if I was the sister..I can tell we'll be hearing a lot from the OP if she can't control every bit of how her sister lives in the 'free' house she generously let her stay in.

This is why a lease is necessary. It is more than just a promise to pay rent. It outlines the responsibilities of all parties.

As for using parts ofthe home for storage. Totally allowed!!!!! The owner can own the home and do as they please as long as it is stated in the lease.

As for coming in...landlords have rights to the property, but so does the renter. Our lease permits access with 24 hours notice.

The tenant has no rights here if there is no lease. As it is---they are just an extended houseguest.

If we couldn't find a tenant---we would have made use of our property as a vacation home for our own use before we'd let someone stay for free. Additionally---we wouldn't loan it to family either. That is just asking for trouble.

A tenant cannot demand anything as far as making the rental available until the first day of that lease.

The headaches of the OP may have not occurred if all the parameters of this agreement were spelled out in writing.

 

[Wishing on a star]

True, debt to income (ability to pay) is the key factor here...
So, are we to assume that the OP is just crazy rich....

But, this goes further than that....

The question still stands....
There is NO way that any bank is going to agree to a short-sell... or any other break, for a homeowner who can 'qualify' for these two mortgages....

This whole thread is just insane...

Nothing adds up....

I can only say that I have no pity for the OP and her 'vent'.

And, unless DMRick is privy to information that we do not have... IMHO he is so far off base.

It's like TROLLs trying to stir up crazy drama or something...

 

[mdsoccermom]

Setting all money issues aside, I think it's wrong of you to not see your sister's side of things with regard to cleaning out your stuff. If you are going to let someone live in the house, then you have the responsibility to move ALL your things out. I have a feeling that if it wasn't your sister, you would do it.

And forget your excuse that you can't get anything done because you don't want someone else to take care of your kid. Because sometimes, that's what parents have to do. We have all been there. If your kid has to adjust his nap so you can clean out your stuff, so be it. If he has to watch tv for a little while, or have someone else watch him while you do it, then so be it. That's life as a parent. Sometimes we have to teach our kids that we can't occupy their every moment because the world does not revolve around them.

 

[DMRick]

And, unless DMRick is privy to information that we do not have... IMHO he is so far off base.

I'm not a he LOL.

What info would I be privy to? Anything I talked about was from the OP's post..she mentioned the short sale. Hmm...what am I off base of LOL? I actually have no pity for the vent either since she did offer the house to her sister..she should have been clearer of what was expected. But hey, anyone can vent away. And I'm pretty sure I'm not a troll.

 

[arminnie]

Again from someone who is in the process of going through the "junk". It's hard. You really do have to look at everything. Some stuff needs to be shredded. You might find money (so far about $20 in change and loose bills for us) or a special picture.

We've only got the garage to go - but that will be the worst. Since the heat index here is about 106 this is just going to be awful.

I also don't like to just throw stuff in the trash if I think someone could get good use out of it. There are people out there that are very needy and could use some good barely used clothing. On the other hand I don't like donating trash that some charity then has to take the time to dispose of.

The owner (rent or no rent, sister or stranger as tenant) can set whatever terms they want. I rented out my house one time with the provision that I had a lot of stuff in the attic that was going to stay.

The sister could also volunteer to help sort through the stuff. The house I am cleaning out belongs to my brother. I'd be waiting forever if I relied on him to come help. But he let my father and I live there for free for the past decade so I feel an obligation to get it cleaned out. I am grateful for having the home. I also could have sat there in it for years as my brother would never have evicted me. But I got my own place as soon as my dad had to move into a retirement home.

I can't imagine acting like the sister of the OP.

 

[Wishing on a star]

If you are going to let someone live in the house, then you have the responsibility to move ALL your things out.

I never heard the OP say that she intended to leave the stuff there... Just that she had one room left to go thru.
And, most importantly, I have not heard that the OP told her sister that they could move in TODAY.....

As I am understanding this, the sister still has almost two months left on her current lease...

No matter what the case, I do not see that the sister has the right to make any demands, whatsoever.
I am clearly seeing a Veruca Salt, "I want it, and I want it NOWWWWWWWWWW!!!!!"

I have been clearly judgemental of the OP in this current situation.... ( I would pull out of the deal immediately )
But, not moving fast enough for her sister?????
She owes her sister nothing. There is no validaton for flaming the OP on that one point.

 

[DMRick]

I never heard the OP say that she intended to leave the stuff there... Just that she had one room left to go thru.
And, most importantly, I have not heard that the OP told her sister that they could move in TODAY.....

Actually she said:

And for the record it's really only one room that still needs to get cleared out, the master bedroom, the babys old room, and the living room are all cleared out so she can start moving stuff into those rooms anytime she wants.

That's why I assumed she was letting her move in when she wanted. Apparently though, it's just some rooms that she can move into. Sounds like her sister didn't realize that she would not have access to all the rooms immediately.
IMO, this is just stuff she should have settled with her sister and made clear (with or without a lease), before she made the rent free offer. If they can't talk now, before she moves in, I don't see hope for a smooth tenant/landlord relationship and since they are together several tmes a week, I think the sister/sister relationship may also suffer. I think we'll be seeing more vents if what is expected isn't settled before she moves in.

 

[Happy Mom2]

I have to say you are a better person than I am. IN the situation you describe I would be calling her to say "You know I just don't think this is going to work our after all. It was probably a bad idea to mix business with family to begin with. You still have two months to come up with something and I will be happy to help you look if you'd like." She sounds pretty ungrateful--sorry about that

I agree.