We're buying a house!!!! (sorta!)

[Desiree]

OOOH I'm so excited. Chris and I are going to be buying his grandma's house from his mom and dad. It's kind of a long story but here's the jist of it....

Chris's grandma died about 2 years ago. Ms. Darelyn (Chris's mom) is going to mortgage the house to pay her brother his part of the inheritance money. We are just going to pay that mortgage back and then she's going to do a donation to us. The best news is that it's going to help us out so very much. The way it's going to work is that we're only going to have to pay $300/mo for it for 10 years. PLUS, the house has an apartment attached on the back of it so we are planning to rent that out to Chris's brother. This is going to allow us to save so much money in the long run. We're currently paying close to $600 in rent for this small apartment we're in.

I'm doing the happy dance right now!!! We can move in in about a month!

 

[dizneenut]

Great news!

 

[tiggerlover]

How wonderful for you!

 

[The Mystery Machine]

Sorry to be a spoiler but are you saying you are going to pay the mortgage without your name on the deed of the house?
Maybe I misunderstood.

 

[Desiree]

Chris's mom's name is going to be on the house until we've paid it off, then after that, she is going to do a donation for us so we'll have it in our name.

She was the executor of Grandma's will and because of all the stipulations she's just going to keep the house in her name until we've paid it off.

 

[nativetxn]

This is great news. Congratulations!

 

[Dan Murphy]

Originally posted by Desiree
....then after that, she is going to do a donation for us so we'll have it in our name....

Just be aware of the annual gift tax exclusion limits, Des. It may or may not impact your specific situation. Good to maybe have a CPA pass on it.

Great news, glad to hear you will be in a home now. I bet Dev is excited too.

 

[binny]

great news!!

 

[Desiree]

Thanks for the heads up.. I will look into that. Even if we decide to leave the house and move elsewhere, what we've paid toward it will give us some equity if Chris's mom decides to see it on the market after we move out.

 

[The Mystery Machine]

I don't mean to rain on your parade but in essence you would be renting still. So technically she would be your landlord and since it is NOT in your name you are obligated to protect yourself legally. I mean when the house needs a major repair of 1000 up to 8000 dollars worth of work you won't be fixing it unless it is in your name, right??? Homes are money pits.

If the brother rents, he won't be renting from you since you are not the owner. Of course I am no lawyer but I know there are legal issues to think about. If something breaks in his apartment, who fixes it?

Just things you should think of anyway. All in all it sounds like a great deal to have a house rented for $300 a month. I am sure you will work it all out.
Congratulations!!!

 

[Saffron]

That's great news!

 

[Desiree]

We understand that. The fact that our bill is going down almost $300 a month is going to help us out tremendously finacially and that is Chris's parents goal in this as well as ours and Davids.

All in all in light of our current financial status this is the best thing for all of us. We understand all the technicallities of it all and are trying to find a way to get out of debt.

Geez you come here hoping for a little positivity.

Chris's mom and dad are looking to hang us by our toes in this. Not everyone is evil and out to get everyone else.

 

[pixiedust218]

GREAT NEWS!!!!

 

[SeaSpray]

CONGRATS Desiree! I am so happy for you! I hope you have many happy, healthy years in your new house!

 

[Lars624]

I'm very happy for you & I wish you many happy years in your new home

 

[catsrule]

conCATulations to you! Now you will have vacation money too! yay!

 

[SplshMtn99]

I work at an insurance agency owned by estate planning lawyers -- so I see stuff like this all the time. I agree with the other items previous posters already pointed out.

But remember, this is a BUSINESS arrangement -- family or not -- so PROTECT your $!

Make sure she changes her will RIGHT AWAY to reflect that the house should go to you guys. Otherwise, if she dies, "YOUR" house could be left to someone else. Don't assume it already reads that way. People forget to update stuff like this all the time.

Also, even though you don't own the house & don't have insurable interest, her agent MAY be able to include you on the homeowners insurance as additional insureds -- so at least your liability & contents could be covered. If they can't, then be sure to purchase tenants insurance to cover your liability & contents.

Otherwise, congratulations.