Buying in-laws house..

posted 3 years ago in Legal
Post # 3
Member
763 posts
Busy bee
  • Wedding: June 2012

Why don’t you buy the house from them (i.e. the cost of the last 3 years of the morgage)?  Then they have no legal issues if you defalt on the loan, and you not only build credit and equity with the morgage, but the house is in your name rather than theirs.

FYI – if my inlaws ever offered the same to us, we would have the same concerns as you (we get along with our inlaws just fine) – I think your concerns are perfectly normal!

Post # 4
Member
7084 posts
Busy Beekeeper
  • Wedding: August 2012

They can’t really just give you the deed. They would have to gift the home to you and pay a bunch of taxes on it I believe. Something to look into.

Post # 6
Member
819 posts
Busy bee
  • Wedding: October 2009

@lambjo:  Your concerns are completely valid. I would highly suggest talking with the bank of assuming the loan, or them selling it to you for a little above what they owe. Keep in mind though, if you take out a new loan to pay for it, the bank will likely require some inspections which will include closing costs.

Their mortgage may not even allow someone else to live there. I would definitely not be paying a mortgage while someone else’s name is on it and the deed.

Post # 7
Member
819 posts
Busy bee
  • Wedding: October 2009

@lambjo:  Say they owe ~$15,000 and you apply for that much, I don’t see any reason why a bank would pass on that, especially considering the house is probably worth at least $100,000

Post # 9
Member
1311 posts
Bumble bee
  • Wedding: March 2015

@lambjo:  You can’t just start making their mortgage payments. You have to refinance the mortgage so it’s in your name, not the in-laws. You also need to have a deed recorded to show that you guys now own the house, to preserve the chain of title and all. I recommend getting an attorney to figure all this out for you. Tell your FI it’s not about not trusting his parents or whatnot, it’s the best for all parties.

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