What to do?

[JonathanG2013]

Only for folks in a tight financial bind but have equity in their home and nearing the end of their lives, because when the reverse mtg is paid back at persons passing, estate gets hit super hard with heavy costs and fees.

Thanks for the info. Was not sure how that worked.

 

[NOYDB]

What ever you don't know how to do now. You can learn. Start reading home improvement how to books. Include in your guesstimates the costs for practice materials. Does the place you want include a shed or garage? Does it include room for you to do things?

You married your wife not a house. You can change the house around to suit you.

 

[ugajay]

What ever you don't know how to do now. You can learn. Start reading home improvement how to books. Include in your guesstimates the costs for practice materials. Does the place you want include a shed or garage? Does it include room for you to do things?

You married your wife not a house. You can change the house around to suit you.

I'm halfway handy. I just can't build on extra rooms. I plan on redoing the cabinets, putting in new flooring, that kind of thing. I do electric work and paint on the side so I can do that kind of thing. But we only have one bathroom and I'm not going to take the time to do that. I'd rather pay someone who knows the craft to do things like that. And I have shed to do my own thing.

 

[ugajay]

I think I've decided to go ahead and buy the house and pay it in full. Then take any leftover and do what I can myself. Then since I will have equity in the house already, take out a loan for what I'm not comfortable tackling myself. I really appreciate all the help!

 

[NOYDB]

Good luck and best wishes on your house. Tell the wife she's got work coming.

 

[rayjay]

We paid our mortgage of a few months ago, 14 years early. Sure is a good feeling & it is amazing how quickly the monthly savings add up.

Go back and figure out how much mortgage interest you saved. We paid off a 15 year mortgage in about 7 years and saved $25,000 in interest. That's serious money.

 

[Jim Baker]

I would, but it's on my land. My papa grew up 20 feet from this house. The area means more to me than home value

If the house is on your land why are you having to buy the house.

 

[Milkman]

My wife's Grandmother paid cash for her house and got a reverse mortgage to use as she felt needed.

Would this work for him guys?

Gotta be 62 to do reverse mortgage

 

[ugajay]

If the house is on your land why are you having to buy the house.

It's family land. I call it mine. Technically it's my dad's land.

 

[1gr8bldr]

With the hoops you have to jump through these days to get a lender for a used home... I think I would lean toward Cash for the house. You could get out hassle free with your sanity. Buying a house is extremely stressful, mostly because of the lender. These home inspectors these days act like it's Easter and they are looking for eggs with a prize in them. Most lenders require a home inspector, and that corrections be made... by a licensed contractor. Most likely, you would get mad half way through, and say, screw you guys, I'll just buy the darn thing without you.

 

[Jim Baker]

It's family land. I call it mine. Technically it's my dad's land.

I understand. First thing you are going to have to do is obtain a title to the land under the house. Whether it be by transfer, purchase by cash or mortgage. To me it would seem that would be your first step unless you have already covered that part.

I don't know your circumstances but it seems to be family related. Before you put a dime into that property be sure you have a clear and valid title. I know people who have lost property because the "trusted a relative".

 

[KyDawg]

Owning a home free and clear puts you in a very strong financial position. I would remodel after I saved up for the work. This coming from someone whos been debt free for a very long time

This. Pay cash for the home, then save and cash flow the remodeling.

 

[KyDawg]

My wife's Grandmother paid cash for her house and got a reverse mortgage to use as she felt needed.

Would this work for him guys?

I personally do not like reverse mortgages. In his case if something happened to he and his wife, the mortgage company would own the house.

 

[ugajay]

I understand. First thing you are going to have to do is obtain a title to the land under the house. Whether it be by transfer, purchase by cash or mortgage. To me it would seem that would be your first step unless you have already covered that part.

I don't know your circumstances but it seems to be family related. Before you put a dime into that property be sure you have a clear and valid title. I know people who have lost property because the "trusted a relative".

It's set up as an estate. House plus 2 acres. My dad has 50 acres next to it and I've bought 50 acres joining from an aunt. The house is setup by itself. No bad blood with family so I think it will work out. Everyone is on board. But like you said you never know so I'll be sure to have a valid title. That's something else I haven't thought about. I appreciate that.

 

[Elkbane]

Regardless of how its set up now, when you buy it, it will be re-titled in your name. You are purchasing it from the Estate, and you'll have to record the deed, otherwise, you don't really own it. My suggestion, unless you have a family dynamic that would cause you to do otherwise, is have you and your spouse own it as Joint Tenants With Right of Survivorship. That way, if one of you passes, your residence won't have to go through the probate process. I had a relative who passed away recently; their house and land were in both names, but no right of survivorship, so the surviving spouse had to go through probate. That's the last thing you oryour loved one want to have to do after suffering the loss of a spouse.

And just for protection, I'd have your Dad sign an option to purchase his portion from his estate when he passes. Families can be quirky and relationships can go sideways. You may feel different living there if you only had the 50 you own plus your 2 acre lot than if it was the 100 acres plus your 2 acre house lot.

The question is, do you really want to live there if you can't ensure that you'll one day have the Dad's property???
Elkbane

 

[ugajay]

I took y'all's advice and paid cash for the house and lot. Got a good deal on it too. Already replaced floors and windows, about to tackle cabinets. Thanks for all the help and info!

 

[Big7]

Regardless of how its set up now, when you buy it, it will be re-titled in your name. You are purchasing it from the Estate, and you'll have to record the deed, otherwise, you don't really own it. My suggestion, unless you have a family dynamic that would cause you to do otherwise, is have you and your spouse own it as Joint Tenants With Right of Survivorship. That way, if one of you passes, your residence won't have to go through the probate process. I had a relative who passed away recently; their house and land were in both names, but no right of survivorship, so the surviving spouse had to go through probate. That's the last thing you oryour loved one want to have to do after suffering the loss of a spouse.

And just for protection, I'd have your Dad sign an option to purchase his portion from his estate when he passes. Families can be quirky and relationships can go sideways. You may feel different living there if you only had the 50 you own plus your 2 acre lot than if it was the 100 acres plus your 2 acre house lot.

The question is, do you really want to live there if you can't ensure that you'll one day have the Dad's property???
Elkbane

I'm with you on the family going nuts for a MONEY.

Long story- short version is, when my Daddy passed away in Jan. 2017. Mama and my Uncle sold our farm Daddy and Uncle had a undivided 50/50%. They sold that farm before the flowers on Daddy's grave wilted.

My Uncle got his 50%, rightfully so.

My Mama and I have barely spoken since hospice.

I disowned ALL my family except my Uncle and 2 Nephew's. Sad situation.

We were all pretty close, especially Mama and I.

Folks would be AMAZED what a good chunk of MONEY does when it comes into the picture !! ??