Jump to content




Welcome to CreditBoards!


Sign In 

Create Account
Welcome to CreditBoards! Like most online communities, you must register to post in our community, but don't worry - this is a simple process requiring minimal information for you to sign up. Be a part of CreditBoards by signing in or creating an account.
  • Start new topics and reply to others
  • Subscribe to topics to get email updates
  • Get your own profile page and make new friends
  • Send personal messages to other members.
 
Guest Message by DevFuse

Read These Items!

  • Please note changes to the Terms of Service for Creditboards.com.  A "plain language" summary has been added to the TOS and to the registration agreement.  No other changes were made.  If you post after you read this, we consider that acceptance of the new terms.  If you have any questions concerning the new terms, please feel free to PM an admin or email admin@creditboards.com
  • If you're getting an Authentication mismatch error: Clear your cache. Log out of CB. Delete your cookie. Close your browser. Open your browser and log back in.
  • Yo!  AOL email is bouncing and they aren't giving us a way to get off their blacklist.  If you're registered with an AOL email address and you have another one you can use in your settings, please change your email on record, so you can get the notifications you're expecting.


Photo

Possible home purchase


  • Please log in to reply
11 replies to this topic

#1 horsegoer

horsegoer
  • Members
  • 338 posts

Posted 14 October 2017 - 05:13 PM

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.



#2 tiggerlgh

tiggerlgh
  • Members
  • 3,217 posts

Posted 14 October 2017 - 07:50 PM

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

#3 oldblue

oldblue
  • Members
  • 143 posts

Posted 15 October 2017 - 05:47 AM

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. 



#4 horsegoer

horsegoer
  • Members
  • 338 posts

Posted 15 October 2017 - 03:15 PM

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, 15 October 2017 - 03:16 PM.


#5 JeffeVerde

JeffeVerde
  • Members
  • 2,856 posts

Posted 15 October 2017 - 04:06 PM

 

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)



#6 hegemony

hegemony

    Area Man

  • Members
  • 79,794 posts

Posted 15 October 2017 - 04:07 PM

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 :)



#7 JeffeVerde

JeffeVerde
  • Members
  • 2,856 posts

Posted 15 October 2017 - 04:09 PM

 

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, 15 October 2017 - 04:10 PM.


#8 horsegoer

horsegoer
  • Members
  • 338 posts

Posted 16 October 2017 - 11:28 AM

 

 

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.



#9 horsegoer

horsegoer
  • Members
  • 338 posts

Posted 16 October 2017 - 11:29 AM

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?



#10 oldblue

oldblue
  • Members
  • 143 posts

Posted 21 October 2017 - 10:17 AM

 

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.



#11 hegemony

hegemony

    Area Man

  • Members
  • 79,794 posts

Posted 21 October 2017 - 11:32 AM

 

 

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



#12 Cactus Flower

Cactus Flower
  • Members
  • 4,515 posts

Posted 11 November 2017 - 05:20 PM

 

 

 

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. 






1 user(s) are browsing this forum

0 members, 1 guests, 0 anonymous users





© Copyright 2003 - 2015 Creditboards.com. All rights reserved. No portion of this site may be reproduced without explicit permission from the owners. The content of creditboards.com is subject solely to the personal whim of its admins. We reserve the right, at our sole discretion, to remove any and all posts or comments, at any time, for any reason which takes our entirely capricious fancy, or for no particular reason whatsoever, without restriction. Comments or questions regarding the site may be addressed to admin@creditboards.com.