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Purchase Home from Father-in-Law

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ebla

Guest
My wife and I are renting a home owned by my Father-in-Law and would like to purchase it. Unfortunately, we live in an area where the cost of living is extremely high. The appraised value of the home is well over $1 Million dollors. I make a reasonably good income at $85,000 annually and cannot afford to purchase this home at the appraised value and certainly could not afford the property taxes, as well. I think my father-in-law would be willing to sell us the house at a substantially lesser price-maybe even what he paid at $430 K. My questions are as follows:
1) Can he sale us the home for less than the appraised value?

2) Can we finance the loan through him under his terms-maybe a 60 year loan?

3) Can we purchase the property without triggering any kind of higher property tax law? The current taxes are $4000/YR . They could go as high as $12,000/yr if the assesor assigns it at the appraised value of the property.

Any reply would be greatly appeciated.

Best Regards,

Ed Blaschke
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by ebla:
My wife and I are renting a home owned by my Father-in-Law and would like to purchase it. Unfortunately, we live in an area where the cost of living is extremely high. The appraised value of the home is well over $1 Million dollors. I make a reasonably good income at $85,000 annually and cannot afford to purchase this home at the appraised value and certainly could not afford the property taxes, as well. I think my father-in-law would be willing to sell us the house at a substantially lesser price-maybe even what he paid at $430 K. My questions are as follows:
1) Can he sale us the home for less than the appraised value?

2) Can we finance the loan through him under his terms-maybe a 60 year loan?

3) Can we purchase the property without triggering any kind of higher property tax law? The current taxes are $4000/YR . They could go as high as $12,000/yr if the assesor assigns it at the appraised value of the property.

Any reply would be greatly appeciated.

Best Regards,

Ed Blaschke
<HR></BLOCKQUOTE>

1) yes

2) yes, and that would be the best method

3) assessment for real property valuation purposes is not based on what you or any Buyer paid for the suject property, but based on market value via comparables of like kind properties in the neighborhod. Thus be prepared to pay the higher amount.
 
S

Swoozie-Q

Guest
How will you handle the &quot;in case of death&quot; issue?

The reason I ask, is I'm currently doing what you're talking about.

My husband and I are purchasing a house from his parents. We've been paying them "mortgate" payments for 3 years now. We're in the process of having my Husband's name put on the deed with his mother. My name will not be on the deed. I asked my husband...what happens if something happens to you, I'll have no legal right to the house. He says I should have no rights to the house because his parents are giving HIM a gift (holding the mortgage and saving us the interest) not ME/US a gift. I work full time, I run my own business...I pay half the bills for the house, is it right that I have no legal right to the house if something happens to him? Also...what happens if we end up divorcing before the house is paid off, will I have no rights to it? We're basically redoing the entire house, gutting all the rooms and redoing them, If we divorce before the house is paid off, shouldn't I get something for all the $$ I put into improving the house? I don't think divorce will happen, but you never know. I'm more concerned about if something happens to him I don't want to lose the house, and all the time and $$ I put into it to make it nice.

Any advice/suggestions would be EXTREMELY appreciated. I don't want to be taken advantage of.

Thank you!!!
Suzy
[email protected]


11-14-2000 07:46 AM IP: Logged

 
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HomeGuru1

Guest
Swoozie-Q, no you are not doing the same thing. In the ebla example, both husband and wife are attempting to buy the property. In your case, your husband wants to "buy" the property and keep you out and keep the property in his name only. What kind of logic is your husband using, pretzel logic?
He has a very bad attitude. If I was your husband I would put title to the property jointly in both names. And I would take you out every once in awhile to a fancy restaurant. Maybe some dancing or enjoy some live music after. I would cherish you like you deserve.
 
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Swoozie-Q

Guest
You're so sweet :)

I really don't know what to do, I've been up all night worrying about this. I'm not trying to be "greedy" but I want to protect myself if anything ever happened. He has 7 brothers & sisters, so it makes it even harder to work through this. He says that because his parents are holding the mortgage, all of their "heirs" are losing their inheritance because of the interest mom & dad would be making on the $$ if they sold the house outright. My comment was that they never would have gotten as much if they sold the house outright, and it was their idea to sell it to us so they wouldn't have to claim it as income. We've rerun all the plumbing, we've completely gutted about half the house now, replaced the heater/ac, and we'll have to put in a new septic system. I don't want to spend all this money if I'm going to lose it all to his family. I don't want to lose everything we've worked so hard for. Am I being unreasonable? It hurts to know he's more concerned with his sibling's inheritance than my well-being if something ever happened. I have a feeling this is going to be a long and hard fight...I really dont know what to do...
please help me.
 
H

HomeGuru1

Guest
You have every reason to feel and think this way. I can only give you advice and do not want to cause a domestic or friction in your marriage. As far as I am concerned, you are right and he is wrong. But hey, it is not my property to give and he is not my husband. I would like to continue helping you on this Real Estate Board and not see any posts from you on the Family Board.
 
S

Swoozie-Q

Guest
Everything's under control now

Just wanted to let you know we "fought it out" last night. My name is going on the deed as well as his, and Mom's is coming off (her choice) and we're doing a separate contract for the purchase of the house. Mom had the same concerns as I did, so we figured this is the best way to do it. We're also putting a clause in that in case of divorce, he'll keep the house (since his parents are financing it) and I'll get back any $$ I put into the house as well as full rights to our second property. I think this works out fine for both of us...in case (god forbid) we do break up, neither one will be left out in the cold. Thank you VERY much for all your help...it's greatly appreciated.
Suzy :)

P.S. We decided to take a little vacation this weekend FAR away to "make up" so I think everything's going to be OK.
 

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