Jump to content

Please use the Feedback forum for questions about the upgrade.  We will get to them as quickly as possible.

 

Sign in to follow this  
horsegoer

Possible home purchase

Recommended Posts

Have a situation where a friend of the family who is about 62 years old owns two houses in neighboring towns with mortgages paid off. He wants to sell the one he's not living in but is in no rush at all. Actually he's putting it off because he doesn't want to go over to the house to take all his belongings out Etc. He has told me he would sell me the house below Market. He's just old and not in the best of health so I think for him to go through this process is going to be a lot and I think he will just keep pushing it off. Is there another alternative I can suggest to him to make this easy? Maybe like a rent to own or some sort of agreement where I'd eventually own it and maybe pay the taxes in the meantime. I may actually have to move into it as you could see for my other divorce post. Thank you very much.

Share this post


Link to post
Share on other sites

In Ohio we do land contracts, have a real estate attorney write up a contract and record it at the county auditors. Make the offer based on helping him get his stuff out. You can write up the terms however you guys can agree. Down payment, interest rate, balloon terms, interest only for so many years, amortization, etc. You'll actually own the place he'll basically be your mortgage company.

Share this post


Link to post
Share on other sites

In Ohio we do land contracts, have a real estate attorney write up a contract and record it at the county auditors. Make the offer based on helping him get his stuff out. You can write up the terms however you guys can agree. Down payment, interest rate, balloon terms, interest only for so many years, amortization, etc. You'll actually own the place he'll basically be your mortgage company.

Thanks for the advice. So we could draw up a contract where we would agree on a price and I could make mortgage payments to him? How would proof of payment work?

Is it the moving of stuff or selling it he may have issues with?

He's just old and in bad health and doesn't want deal with anything...either way.

Edited by horsegoer

Share this post


Link to post
Share on other sites

 

In Ohio we do land contracts, have a real estate attorney write up a contract and record it at the county auditors. Make the offer based on helping him get his stuff out. You can write up the terms however you guys can agree. Down payment, interest rate, balloon terms, interest only for so many years, amortization, etc. You'll actually own the place he'll basically be your mortgage company.

Thanks for the advice. So we could draw up a contract where we would agree on a price and I could make mortgage payments to him? How would proof of payment work?

 

 

 

That would be an owner-financed sale. It's not uncommon in a situation like this. While being super-sensitive about the subject, I'd raise the question of what happens to the loan if he expires before the loan does. Standard practice would be that the note becomes an asset of his estate, and no change for you. But if there's no other family that he'd want to see this go to, the note could be structured such that it's considered paid in full on his death.

 

As for proof of payments - you could write paper checks so you've got paper trail - but you run the risk that he lets the checks pile up, dies, and his executor claims that you've not been making your payments. I'd suggest using a checking account with the same bank that he uses, set up auto-payments, and be sure to archive your bank statements, in case you ever need to show proof of payments. (transfers within the same bank avoids the issues where some banks will generate a paper check when making an auto-payment to an individual)

Share this post


Link to post
Share on other sites

there can be consequences from a tax perspective for selling below fair market value.

 

land contracts can work, but be sure to find an attorney who is well versed and IMHO the seller needs to do this without the buyer involved in order to protect his interests.

 

good luck :)

Share this post


Link to post
Share on other sites

 

He's just old and in bad health and doesn't want deal with anything...either way.

 

 

Any chance you're dealing with hoarder behavior? Did he live in this house with a now deceased spouse or anything like that, where there might be emotional hurdles in letting go of what's there?

Edited by JeffeVerde

Share this post


Link to post
Share on other sites

 

 

In Ohio we do land contracts, have a real estate attorney write up a contract and record it at the county auditors. Make the offer based on helping him get his stuff out. You can write up the terms however you guys can agree. Down payment, interest rate, balloon terms, interest only for so many years, amortization, etc. You'll actually own the place he'll basically be your mortgage company.

Thanks for the advice. So we could draw up a contract where we would agree on a price and I could make mortgage payments to him? How would proof of payment work?

 

 

 

That would be an owner-financed sale. It's not uncommon in a situation like this. While being super-sensitive about the subject, I'd raise the question of what happens to the loan if he expires before the loan does. Standard practice would be that the note becomes an asset of his estate, and no change for you. But if there's no other family that he'd want to see this go to, the note could be structured such that it's considered paid in full on his death.

 

As for proof of payments - you could write paper checks so you've got paper trail - but you run the risk that he lets the checks pile up, dies, and his executor claims that you've not been making your payments. I'd suggest using a checking account with the same bank that he uses, set up auto-payments, and be sure to archive your bank statements, in case you ever need to show proof of payments. (transfers within the same bank avoids the issues where some banks will generate a paper check when making an auto-payment to an individual)

 

Thanks.

 

 

He's just old and in bad health and doesn't want deal with anything...either way.

 

 

Any chance you're dealing with hoarder behavior? Did he live in this house with a now deceased spouse or anything like that, where there might be emotional hurdles in letting go of what's there?

 

Def not.

Share this post


Link to post
Share on other sites

there can be consequences from a tax perspective for selling below fair market value.

 

land contracts can work, but be sure to find an attorney who is well versed and IMHO the seller needs to do this without the buyer involved in order to protect his interests.

 

good luck :)

Thanks. So contact a real estate attorney?

Share this post


Link to post
Share on other sites

 

there can be consequences from a tax perspective for selling below fair market value.

 

land contracts can work, but be sure to find an attorney who is well versed and IMHO the seller needs to do this without the buyer involved in order to protect his interests.

 

good luck :)

Thanks. So contact a real estate attorney?

 

Yes I'm a hardcore DIYer and this is one thing worth every penny, even though you could do it without one for nothing. I tried to diy a 13k house on a land contract pulled title myself for $100, found a substantial lein and clouded title. At the same time there is no telling what I could have missed doing it myself. Anything of real value needs an attorney and/or a good title agency.

Share this post


Link to post
Share on other sites

 

 

there can be consequences from a tax perspective for selling below fair market value.

 

land contracts can work, but be sure to find an attorney who is well versed and IMHO the seller needs to do this without the buyer involved in order to protect his interests.

 

good luck :)

Thanks. So contact a real estate attorney?

 

Yes I'm a hardcore DIYer and this is one thing worth every penny, even though you could do it without one for nothing. I tried to diy a 13k house on a land contract pulled title myself for $100, found a substantial lein and clouded title. At the same time there is no telling what I could have missed doing it myself. Anything of real value needs an attorney and/or a good title agency.

 

+1

Share this post


Link to post
Share on other sites

 

 

 

In Ohio we do land contracts, have a real estate attorney write up a contract and record it at the county auditors. Make the offer based on helping him get his stuff out. You can write up the terms however you guys can agree. Down payment, interest rate, balloon terms, interest only for so many years, amortization, etc. You'll actually own the place he'll basically be your mortgage company.

Thanks for the advice. So we could draw up a contract where we would agree on a price and I could make mortgage payments to him? How would proof of payment work?

 

 

 

That would be an owner-financed sale. It's not uncommon in a situation like this. While being super-sensitive about the subject, I'd raise the question of what happens to the loan if he expires before the loan does. Standard practice would be that the note becomes an asset of his estate, and no change for you. But if there's no other family that he'd want to see this go to, the note could be structured such that it's considered paid in full on his death.

 

As for proof of payments - you could write paper checks so you've got paper trail - but you run the risk that he lets the checks pile up, dies, and his executor claims that you've not been making your payments. I'd suggest using a checking account with the same bank that he uses, set up auto-payments, and be sure to archive your bank statements, in case you ever need to show proof of payments. (transfers within the same bank avoids the issues where some banks will generate a paper check when making an auto-payment to an individual)

 

Thanks.

 

 

He's just old and in bad health and doesn't want deal with anything...either way.

 

 

Any chance you're dealing with hoarder behavior? Did he live in this house with a now deceased spouse or anything like that, where there might be emotional hurdles in letting go of what's there?

 

Def not.

 

Hire a junk removal company if the items are of no value or consequence to their owner.. it won't be cheap, but they will get the job done.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×

Important Information

Guidelines