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Jonsgirl04
Love my two girls! xoxo
Member since 9/08 6079 total posts
Name:
Stephanie
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In laws want to give us their home? HELP!
So my MIL and father in law are offering us their house . They are no longer together but rather see us take it than sell it. The house is a mother daughter so my MIL would still live with us but in the apartment we have.
They have 100,000 in equity. They want us to take over the payments and put it in our name. I currently rent in a complex and have never owned a home. I want to know if this is a good or a bad idea. 
My FIL is saying to take out a 30 year mortgae loan? I don't know what the proper way is to go about this? Also they are both going to be retiring my MIL is 70 and FIL 65.
Will this affect their retirement/Medicaid/social security at all?
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Posted 8/31/17 9:17 AM  |
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Aries14
Can't plan life...
Member since 8/08 2860 total posts
Name:
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In laws want to give us their home? HELP!
Are they selling it to you? Why would he be saying to take a 30 year mortgage loan?
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| Posted 8/31/17 10:54 AM |
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jamnmore
LIF Adult
Member since 6/16 989 total posts
Name:
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In laws want to give us their home? HELP!
It sounds like they want to sell you the home for the balance on their mortgage. With the agreement, you would have no down payment and would take out a mortgage for the agreed upon price. Would MIL be paying you rent? They may expect that since they gave you the equity - $100000 - she will live there rent free forever. Can you live with that?
More importantly, do you want to own a home? Do you want to own that home?
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| Posted 8/31/17 11:47 AM |
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In laws want to give us their home? HELP!
It sounds like they basically want to sell the house to you for the amount of their outstanding mortgage.
If you do this, please hire an experienced real estate attorney to make sure it is done properly. It doesn't cost that much in the grand scheme of home-ownership and can save headaches later on.
What are you concerns about doing this? Do you like the house? Is it in the area where you want to live? Are there any concerns about living with MIL?
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| Posted 8/31/17 11:57 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: In laws want to give us their home? HELP!
Posted by starbrightgirl8
It sounds like they basically want to sell the house to you for the amount of their outstanding mortgage.
If you do this, please hire an experienced real estate attorney to make sure it is done properly. It doesn't cost that much in the grand scheme of home-ownership and can save headaches later on.
What are you concerns about doing this? Do you like the house? Is it in the area where you want to live? Are there any concerns about living with MIL?
All good advice - and the questions you need to ask yourself. If you like the house, want to own a house, can afford the payment, it is an area you want to be in, and you can see living with your MIL for the rest of her life, then it sounds like it could be good for your family.
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| Posted 8/31/17 12:05 PM |
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loveus
LIF Adolescent
Member since 9/13 684 total posts
Name:
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Re: In laws want to give us their home? HELP!
Posted by chilltocam
Posted by starbrightgirl8
It sounds like they basically want to sell the house to you for the amount of their outstanding mortgage.
If you do this, please hire an experienced real estate attorney to make sure it is done properly. It doesn't cost that much in the grand scheme of home-ownership and can save headaches later on.
What are you concerns about doing this? Do you like the house? Is it in the area where you want to live? Are there any concerns about living with MIL?
All good advice - and the questions you need to ask yourself. If you like the house, want to own a house, can afford the payment, it is an area you want to be in, and you can see living with your MIL for the rest of her life, then it sounds like it could be good for your family.
Since both in laws owned the house what does your fil get?
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| Posted 8/31/17 12:37 PM |
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BabyBearA
LIF Adult
Member since 7/11 1254 total posts
Name:
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In laws want to give us their home? HELP!
For 100k you can't buy anything so I wouldn't care if I didn't like the location, if my MIL lived downstairs, if the house needed work, I would buy it!!! It's an investment in my opinion. They said it themselves that you can sell it later or whatever.
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| Posted 8/31/17 8:56 PM |
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Dolphinsbaby
My 3 little guys!
Member since 12/10 2943 total posts
Name:
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Re: In laws want to give us their home? HELP!
It sounds like they are selling it to you for the balance? So if they still owe $200k on the house, let's say, it seems they are selling it to you for that amount. The house would be in your names and you would be responsible for the monthly payments and all bills associated with the house. This actually probably is a relief for them since there are so many expenses associated with home ownership.
Your FIL might've told you to get a 30 year mortgage so you won't be stretched thin. If you can pay it off sooner or make larger payments than your required monthly payment, even better. DH and I pay our mortgage on auto pay. Twice a month money gets deducted from our savings. The way the payments work out we wind up making one extra mortgage payment per year, but we don't feel it. This shaves 5 years off the life of our loan so it will be 25 years instead of 30 (if we don't make any extra principal payments).
As pp mentioned, get an experienced real estate lawyer. Assuming you like the area the house is in and don't mind MIL living with you, it sounds great.
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| Posted 9/1/17 7:18 AM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: In laws want to give us their home? HELP!
It will not affect their social security, retirement or medicare.
It may or may not affect Medicaid if they plan on applying for it, based on how this transaction will be done. Medicaid look back period is 5 years.
I'd go for it.
As PP said, a 30 year mortgage will not leave you stretched thin. It gives you the option of making additional payments against the principle, reducing the amount of interest you will pay overall and shortening the life of the loan. A good rule of thumb is to make the equivalent of 13 payments per year.
Bankrate.com has a good mortgage amortization calculator.
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| Posted 9/1/17 9:06 AM |
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CSK
LIF Adolescent
Member since 9/11 892 total posts
Name:
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In laws want to give us their home? HELP!
you haven't clearly explained the situation.
Are you paying them the $100K of equity and taking over the payments?
where is the 100K from? is it based upon what the house is worth now, or how much they paid down the mortgage?
basically, how much financial obligation are you assuming here?
is your mother in law paying market rate rent to you? under market? is it deducted from the $100K?
Do you want to live with your mother in law? I wouldn't want to unless there is a necessity.
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| Posted 9/1/17 11:32 AM |
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Jonsgirl04
Love my two girls! xoxo
Member since 9/08 6079 total posts
Name:
Stephanie
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Re: In laws want to give us their home? HELP!
My MIL and FIL are married but live separate lives. They don't want to divorce. My FIL will live with his girlfriend and my Mother in law with us in the apartment. She is 70 years old and retiring in January. My FIL wants to see his Grandchildren have a yard to grow up in since we live in an apartment. My MIL would pay us rent to help cover the Oil bill. They live in North Patchogue. It is a nice big house with a big yard and pool. 4 bedrooms. 2 bathrooms, basement, and the apartment. The house was appraised a few years ago for $325,000. Its def worth more but because he lives in an area where there are many small cottages and bungalows because of the Lake it was appraised for less. I don't know anything about houses, mortgages ect... He just said they they had a $100,000 in equity. So he said it was a gift of equity. So Lets just say he has $200,000 left he would want us to take a loan out and buy the house below value of what they owe. Not sure if I still need closing costs or a down payment. This wouldn't happen until next year after my lease is up at my complex. So many questions and still need to see if I can even get approved for a mortgage. Such a huge step if we do this and can afford it. Right now I pay $1850 a month in rent and its only going to go higher next year so Ill prob be close to $2000 a month. If my house payment is around that I might as well have a house.
Message edited 9/7/2017 2:00:39 PM.
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| Posted 9/7/17 1:52 PM |
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Jonsgirl04
Love my two girls! xoxo
Member since 9/08 6079 total posts
Name:
Stephanie
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Re: In laws want to give us their home? HELP!
Here is a pic of the house I found online.
HOUSE
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| Posted 9/7/17 1:55 PM |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
Name:
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Re: In laws want to give us their home? HELP!
Posted by Jonsgirl04
Right now I pay $1850 a month in rent and its only going to go higher next year so Ill prob be close to $2000 a month. If my house payment is around that I might as well have a house.
I'm sure the monthly payment will be very close to what you pay in rent. My cousin bought his childhood home from his parents. He got a real estate lawyer to handle it.
You can also find some mortgage calculators online to figure out your monthly payments.
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| Posted 9/7/17 8:06 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: In laws want to give us their home? HELP!
You would really need to know the numbers first, but I'm thinking your monthly payment would be close to what you're paying now.
If I were in your position, I'd probably take them up on the offer considering they're gifting you $100k in equity. As long as no strings are attached.
The only downside I see is that your MIL might still see it as "her house" and that could be annoying with her questioning everything you do to it.
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| Posted 9/9/17 7:37 AM |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: In laws want to give us their home? HELP!
Crunch ALL the numbers before you agree.
Yes they are giving you $100,000 but they are also transfering enormous expenses to you
So all she is covering is the oil bill? That's really not that much. It'll add up to way below market rent.
Proceed with caution.
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| Posted 9/9/17 9:09 AM |
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