NWR: Homes-Updated

Original post by Tetelove

Aug 16, 2010 06:16 PM

So my fsil came to FH and I to discuss us purchasing a home but with some strings attached.

She is willing to give us $40,000 + closing costs to purchase the home of our choice. She will be putting her name on the deed to help us with financing because I'm currently not working. My Mother and sister will be moving in with us to help out with the mortgage because I will be in graduate school for two years post wedding. (FH's, my Mother and sister's names will be on the deed.)

In return, once I get out of school and Fh and I want to get her off the deed....WE WILL PAY HER 1/3=33%, THE APPRAISED VALUE OF THE HOME.

Is this a good deal or no. My brother called me today ranting that she is trying to HUSTLE us,etc...I see exactly where he is coming from. He thinks that if she was doing us a favor, that she would just loan us to $40,000+ closing costs and let that be the only thing we have to pay back.

Initally I thought it was a great deal with the economy the way it is now...and the fact that we can get a home pretty cheap. But now I don't know. I did the math at for a home valued @ $300,000...we would have to pay her back $99,000 ( a profit on her part of around $49,000)

Would you ladies even consider such a deal?

elp6421 Posted: Aug 17, 2010 09:34 AM

Re: NWR: Homes

No way! I agree with everyone else, don't mix family with business. The end result can be disastrous! And why would she want to make a profit off you anyways? Doesn't seem right to me.

QueenPeach Posted: Aug 17, 2010 09:55 AM

Re: NWR: Homes

Don't do it! That's is a horrible deal. Why is she trying to hustle you out of so much money?! And why 1/3 of the appraisal of the house? So if she lends you $40,000 and your house ends up worth $500,000 then you owe her $166,000?!!! Sounds like a loan shark to me...

Melissa1012 Posted: Aug 17, 2010 09:58 AM

Re: NWR: Homes

Personally, I wouldnt do it. I have found over time that mixing family and money is never a good thing. It doesnt seem like it is going to work out good for you in the end either. You, FH and your family you should definetly sit down and think about, make a list of all the pros and cons. Good luck with whatever you decide to do!

GiannisWifey Posted: Aug 17, 2010 09:58 AM

Re: NWR: Homes

if she wants to make 'an investment' tell her to put her money into the stock market...

DO NOT TAKE THE MONEY..........I have heard of horror stories with money ruining relationships and you should NOT GET HER INVOLVED whatsoever. it is one thing if she gave you a GIFT, but to sit there and make double her money back while being on the deed is getting WAY TOO COMPLICATED.

DO NOT do it.

ready2wed Posted: Aug 17, 2010 10:09 AM

Re: NWR: Homes

I totally understand your situation and that you want a house bad. In the end, it seems like it will only be a headache and I have to agree with everyone else and say DON'T DO IT! It is better to just wait it out and you will eventually get your house. If FH thinks his sister is trying to 'hustle' y'all listen to him! He knows his sister better than you do. As newlyweds try to keep as little people as possible in your home, meaning no one but you and hubby.

Susan2010 Posted: Aug 17, 2010 10:12 AM

Re: NWR: Homes

I always say dont mix business with pleasure- most times there will end up being hard feelings on one side of the deal.

saralee1978 Posted: Aug 17, 2010 10:57 AM

Re: NWR: Homes

I am a real estate lawyer - DON'T DO THIS. Everyone above has posted very valid reasons for you to STAY AWAY. I have seen family relationships destroyed because they got involved in situations like this.

Rent a place, stay with family, buy a home out east.....DO ANYTHING BUT TAKE THE MONEY.

rpdixygrl Posted: Aug 17, 2010 11:00 AM

Re: NWR: Homes

I agree 100% with your Fiance.

If she was really nice she would loan/give you the $40,000.

Not EXPECT 1/3 the price of the house.

You said it yourself.....she could make a $50,000 profit.

DONT DO IT!

stx29kls Posted: Aug 17, 2010 11:40 AM

Re: NWR: Homes

Don't do it!!! Please take my advice. What if something, god forbid, happened to your FH and ur are **** out of luck on a house? Keep family and home buying separate. When you are ready to buy a home, you will.

Tetelove Posted: Aug 17, 2010 02:21 PM

Re: NWR: Homes

Girls, I appreciate SOOOO much your thoughts on this. We have decided that buying a home under these conditions is to risky and so we have decided to wait.

After all....we were planning on buying a home anyway so we have patience and can wait. I fully agree with you girls that she is making a HUSTLE as far as this deal goes.

We have dedcied that we will stay with family and save our OWN downpayment and that way the home will be ours. :hug Thanks again ladies for all the feedback. I just really wanted to know whether we would be stupid to pass up purchasing a home now.

And I totally agree that this is a 'judge Judy episode waiting to happen'

Thanks again girls!!!

little j Posted: Aug 17, 2010 02:41 PM

Re: NWR: Homes-Updated

Posted by IheartDanger1023

I wouldn't do it. I'd keep family and house purchasing as separate as possible.

ita!

JenBill61210 Posted: Aug 17, 2010 02:49 PM

Re: NWR: Homes-Updated

i would not do it. you do not want anyone else involved in your finances

mybabylovesmoi Posted: Aug 17, 2010 03:13 PM

Re: NWR: Homes-Updated

ooo, i read this on my phone yesterday and couldn't respond.

I'm glad you updated and I really, really believe it is the BEST DECISION!
it is a recipe for disaster and hard feelings!!! You and FH can work together to buy YOUR first home together with no strings attached!!! And when you sell, ALL the profits will come back to you two.

GiannisWifey Posted: Aug 17, 2010 03:31 PM

Re: NWR: Homes-Updated

honestly, I think that was your best decision

KerriJohnS Posted: Aug 17, 2010 03:41 PM

Re: NWR: Homes-Updated

I just saw this post and I'm so glad you turned it down.

I'm not a fan of family member's making money off eachother. Lend and pay back, OK. But hustling them? NO WAY!! sorry.

I think this would have been a bad deal that would have turned around to bite you on your asss when the time came around.

Plus 44 g for 33% of the house's worth? seriously?? ontop of still having to pay the mortgage and all.. that would be a lot for anyone to handle.

SummerBride10 Posted: Aug 17, 2010 05:27 PM

Re: NWR: Homes-Updated

I dont know about the 'good deal' aspect, but I said no because if I'm buying a home with DH...I want to buy it with him, with our money, no one else involved.

AwaitingAugust Posted: Aug 17, 2010 06:02 PM

Re: NWR: Homes-Updated

Posted by Tetelove

Girls, I appreciate SOOOO much your thoughts on this. We have decided that buying a home under these conditions is to risky and so we have decided to wait.

And I totally agree that this is a 'judge Judy episode waiting to happen'

OMG ... Thank goodness you didn't do it ... it's sooo not worth it! Not a very good FSIL if she's trying to rip off her own brother like that!

Lucky2010 Posted: Aug 17, 2010 06:09 PM

Re: NWR: Homes-Updated

Posted by Tetelove

Girls, I appreciate SOOOO much your thoughts on this. We have decided that buying a home under these conditions is to risky and so we have decided to wait.

After all....we were planning on buying a home anyway so we have patience and can wait. I fully agree with you girls that she is making a HUSTLE as far as this deal goes.

We have dedcied that we will stay with family and save our OWN downpayment and that way the home will be ours. :hug Thanks again ladies for all the feedback. I just really wanted to know whether we would be stupid to pass up purchasing a home now.

And I totally agree that this is a 'judge Judy episode waiting to happen'

Thanks again girls!!!