HELP, Looking for the best option!!

[nelson990]

heres the thing my father-in-law just lost his wife and has four kids he want to move to another state where he has more family. he wants us to take over the house here in nebraska and give him some start up money. the facts...

he has lived there 9 years.
bought the house for 33,000 at 6% because he was from mexico and had a large family (some kind of discount).
has 27,000 left.
house is valued now at 55,200.
the loan is not assumable.
the wife(his oldest daugther) and i dont want to live in this house longer than 5 years.
we can pay off 27,000 in a year or two no problem.
willing to fix-up the 3 bedroom house to bring up value.
want to sell in 3-5 years, then buy are own house.
we make 37-60k a year (depending on my job, grad in dec. in computer programming).
we are first time home buyers.


the wife and I are sort-of looking for a loop hole to take over the payments on the house without having her father selling it to us. he is willing to do whatever he can to help us out for some start up money to move.

is there something we can do since she is family? Can we take out a personal loan so he can pay off the 27K then give us the house? or what would be the best choice of action?
Sorry for the long note.

 

[HomeGuru]

Why should you take over payments without buying the property? Check out buying the property via an installment contract.

 

[nelson990]

We have looked into buying the home(the best option so far). We figured if we buy the house her father will receive about 27-28K and if he gives us 8K(wedding present?), we would only need a loan for 47K. That way he gets his start up money and we get the house.

I was wondering if we could save us money(mainly interest) if "somehow" by buying the house at his 6% or by family transfer(or something) take over his loan. Then having him gifting the house to us or tranfer the deed or having us on the deed while making payments. That way we can give him controlled monthly payment for his(our) family to get on thier feet and we dont have to take out a big nasty loan for a house that we will want to sell in a 3-5 years.

I dont know if any of this is possible, or anything like it I just wanted to avoid buy the house at its apprecated value, when theres so little left on the loan. and simply pay her father what he has put into the house. Not out to screw anybody but dont what to be screwed by ourselfs or the bank. Is this our only choice?

 

[HomeGuru]

Your ideas are good but can't be done and the numbers don't add up.

 

[nelson990]

One more try... What if we just move into the house and pay her father the monthly mortgage and take out a personal loan to cover his needs to move. In a year (or two) when we pay the house off we could have him sign over the deed to us and by that time we should have paid him back what he has put in. It wouldn't be renting since were family, were just helping out with the payments.

You are right, I havent figured the numbers in both cases, but it just seems that this way the money is shared in the family and the house is bought and sold quicker at the cheaper rate and value.

Heres hopeing.

 

[HomeGuru]

I refer you to my original response: installment contract.
Have an attorney help you with the details.