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buying home for relative :(

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spterry

Junior Member
What is the name of your state? Virginia/Florida
My dh & I live in VA, dh's son lives in FLA. Dh son has horrible credit and is renting a home which is for sale. DH wants to purchase home, have son's name on deed and we/dh carry the mortgage; i.e. son pays mortgage directly but it's in OUR NAME. I suggested we purchase and have son rent from us then buy AFTER he straightens out his financial (continual) messes. He is very irresponsible with a great income (250+year). I know this borders on family law but what can we do to protect ourselves and still help him. Any suggestions? This is one of those typical second marriage messes involving stepchildren where the biological parent is "blinded" by emotion and the stepparent sees things slightly clearer!!! Thanx! :) (Also wasn't sure about FLA law,etc)
 


FarmerJ

Senior Member
dealing with family as tenants bites your going to make a mistake if you have him as tenant Instead help him look for a property that is for sale on a contract for deed where He has to put up a decent size down and make payments to owner , then after a few yrs if there is a balloon he can plan for it and apply for mortgages , even if the home is not the ideal perfect one He will be making payments and some headway at credit repair . any assistance you offer must be in writting NO oral anything . and dont be afraid to see a attorney to help you .
 

spterry

Junior Member
Well, I have already advised dh of your suggestions (weeks ago). The problem is dh has committed to his son to do this i.e. he won't back our of his promise. So...I'm trying to salvage what I can of my/our financial liability. The only way I can see to do this at this point is to buy the property as a rental and rent to him with a written lease/purchase option. Independent of the housing contract we would also have him sign a separate contract committing to work with a financial counselor to get his affairs in order. The house is 120K and is in a neighborhood which is currently undergoing massive renovation i.e. homes are doubling in price. So it's a good financial investment for us but a poor emotional situation. I've already posed the question to dh if he is willing to "evict" his son if he doesn't pay the rent to which I got NO RESPONSE! So......
 

FarmerJ

Senior Member
You have my sympathy but you gotta put foot down with rules in writting or refuse to participate no matter whose feelings get hurt
 

spterry

Junior Member
Thanx for your sympathy. The plan at present is to have our wayward child sign a lease as well as a legal contract agreeing to obtain financial counseling/assistance. Additionally, he will have to provide a 3-4 year plan so he can purchase the home from us. Also he will have to report to us every 3 months on his financial status and progress. DH admits that he does not want to own the home beyond 3-4 years, so hopefully that will spur him to action. We plan to talk with him late this week. Thanx for your help.
 

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