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That is a bad idea. The best thing to do would be to find her a smaller home or Senior living apartment, allow the daughter to live with her if she needs assistance throughout the day while she is looking for a job. Keepyour finances separate.
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Why can’t your husband buy the house and have his sister who lives in the house pay rent to the tune of the additional $500 it will cost. That is cheap rent. I would charge her $700 or $800 a month to include the cost of maintenance
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Geaton777 Nov 2022
Because this may not be sustained... if the sister loses her job or something happens where she can't pay rent or make ends meet, it is a disaster for the OP. This sister is currrently unemployed. Not a good start.
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TXliving75: Absolutely do not do this as you need to build your own retirement. It's not advisable to foot the bill for parents' needs.
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Oh my gosh! Think of all the additional interest you will pay and you will probably NEVER pay off your loan. Yes, sometimes it's just time for people to downsize. Her desires shouldn't take such a huge toll on your family's finances. Even if mom were to leave him the house, he might never be able to (legally or emotionally) get his sister out of there.
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You are not wrong to feel as you do as this is a terrible plan. I'm not sure how your DH thinks this is a sound idea. Aside from adding to more of your own debt, does DH not remember that home ownership involves much more outlay of money than the monthly mortgage payment? And trust me stuff will happen. Who is going to cut the lawn? Who is going to pay $7K or more for a new roof when it starts leaking? What happens if something goes drastically wrong with the plumbing and you have to shell out thousands of dollars to fix it? Tell DH to get his head out of the clouds and come back to earth. And I mean that nicely :)
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Lantana Dec 2022
And have to pay property tax and insurance
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Buying the house might be a very good investment for your MIL and SIL, giving them some security. Your husband may want to do this. What if your husband loaned them the money? He can give them a good "family" rate of interest. Loans to family members should have a contract and re-payment schedule. They'd be paying back the mortgage they need to take out and the loan to your family.
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PeggySue2020 Nov 2022
I’m sorry but no
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I have been thinking about this for a day or so. (what a life!)
What would happen if you or your husband were to lose your jobs or were forced to cut back drastically on your hours?
What would happen if you or your husband were to have an accident and be unable to work for 6 months or so?
You say MIL has been renting this house for 20 years. How old is the house? 20 year old house is one thing a 50 or 100 year old house is another.
What renovations will have to be made to the house in order to allow MIL to remain? Will there need to be an accessible bathroom done? Is there a first floor bedroom that she can use if she can not do stairs? (unless this is a ranch house)
How much work can you and or your husband do when the house needs repairs?
If you are living in a cold area are you ready to shovel and plow that driveway and sidewalk and do yours as well? And the lawn in the summer.
And is $149k the market rate or is there a bit of a break since she has rented for so long?
Is this an "as is" sale and no inspection? Is there work that needs to be done?
Will all repairs be done before the sale closes?
And the biggie....
Will you get your money back?
When MIL dies will the house be sold and you recoup your investment or will SIL take up permanent residence and you will be landlords for 20. 30, 40 years?
If MIL and SIL will be paying you rent at either the same rental or a bit higher this might not be a bad deal. But I would not do it unless
1. I had enough that if I was unable to work for a while I would still be able to pay the mortgage.
2. MIL and SIL sign a rental contract and they pay rent at an amount that will either pay the mortgage each month or at a rate that would be customary in the area for a house.
3. It was safe for MIL to remain there.
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If you and husband want to buy the house as an investment, and it really is an appropriate investment property, then do it. Otherwise don't. And DON'T lend that money to MIL even with SIL, or co-sign with them!
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No one should cosign, or the remaining co-owner will be responsible for the house payments and upkeep unless that person can afford to pay the bills if the affected co-owner should lose income.
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JoAnn29 Dec 2022
OP has not returned since originally posted. Post is over a month old.
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I am not sure the bank will allow you to do this…. When DH and I took out a loan against our home to have the roof replaced the bank wanted to know this. They are going to make sure it’s a good financial decision for them as well.
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November 3 question.
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