Post # 1
My aunt and uncle are looking to move out of their current home to a newer house and would basically give us the house and put the current mortgage under our names and we would take over the mortgage payments. The house is cute but not well taken care of, it is structurally sound but very dirty. The plumbing also needs work but my fiance is sure that he will be able to fix it, as he is very talented with those types of things. He also wants to be sure that he can fix it so he would make sure to check it out before we agree.
The other issue we dont want to stay in our current town forever. In about a year once I finish school we would probably like to move somewhere closer to the ocean. It will probably take that long to fix the house up but at that point we could decide if we really wanted to stay or go. Also it would be ours to do with what we wanted, so we could rent it out or even sell it and use that money for what we needed, i.e. moving somwhere else.
This idea just sort of came out of nowhere yesterday when my aunt called me. I know that she would never ever take advantage of us, so if she truly thought the house was unlivable or would not help us out then she would not have suggested it. The suggestion came at a time when I was thinking and wishing for a space of our own that we can do with what we want.
We currently live in my grandmothers old house, as unofficial renters. This house is not structurally sound and has awful mold in the basement, which Hurricane Irma didn’t help. I really want our own space, I am so tired of feeling unsettled and I’m ready to actually make a home, with my own decoration ideas and investing in pieces that I like. I am willing to put in the work to renovate parts of the house that need it, as i have some ideas that I really want to implement, like glitter counter tops and maybe a pool.
I just dont know what to do. What would you do?
Post # 2
Are you living rent free in grandmothers house? How much would the mortgage be on aunts house vs how much it’s worth and is it affordable?
Post # 3
It’s not going to be as easy as your aunt thinks it is. You can’t just decide to transfer a mortgage into someone else’s name. You need to qualify for a mortage on your own, and they will need to sell you the house, even if for $1. But someone needs to pay closing costs. Can you afford that? I also would NEVER purchase a house without an inspection, regardless of who is selling to me. Have you considered what might happen if the inspection revealed issues – i doubt your aunt and uncle would agree to making any repairs so you need to be prepared to pay out of pocket. Honestly you cannot tell if a house is structurally sound just by looking it. On another note, this could also have tax implications for your aunt and uncle that they may not have thought through While this is a very generous offer, I’d be concerned about what happens if you sell. Will your aunt and uncle expect a share of the profits? I’d get that clearly stated in writing. You and husband, separate and apart from your aunt and uncle, need to speak with a real estate attorney.
Post # 4
I’d be suspiscious that the mortgage on the house is more than the house is worth. Otherwise, why woudn’t they put it on the market to recoup the equity they’ve put into it? Sounds like a headache.
Post # 5
chrissybee : I would pay for a formal inspection just as you would if you were buying a house, just so you can have an idea of how much work you need to put in. When we bought our house the seller was shocked when we went back and said we wanted to renegotiate price because of issues he hadn’t even noticed. He thought the house was fine. It was FAR from fine hahaha.
If it checks out and it is something you could easily rent or sell when you want to move I think this is very generous of your aunt. Just make sure you are even ABLE to take over the mortgage – many aren’t transferrable once the ownership changes hands. And do not do anything unofficially – I know she is family but this is a business transaction. If you are to be the new owners go down to the country registry and change the deed.
Post # 6
littleanchor : yes all of this.
This is not as cut and dry as your aunt may make it seem. You may live in a county or state that has transfer taxes based on the fair market value of the home, not what is actually paid. Be careful bc those can be thousands of dollars up front, and no lender will let a mortgage be assigned without a deed transfer.
Sounds like you should graciously pass on this.
Post # 7
pinkshoes : No we are not living rent free, it will be more probably like $200 more. The house was very inexpensive after we were to fix it up would honestly be worth more.
HoneysHoney : My aunt is just someone who doesnt want to deal with it, lol. She would rather give me the house and lose the money then have to clean and repair the house, not because it would be expensive to repair but because she just doesnt want to have to do it.
LilliV : I will definetly look into getting an inspection done. Everything would be offical with contracts and all that.
chocolateplease : We are in Florida, so i have no idea lol. We are in the very early stages of planning and honestly am not even 100% sure that my aunt is going to go through with this.
littleanchor : Thank you for all the info, I honestly have no idea what I am doing lol so i will have to ask about all of this.
Post # 8
She could just sell the house for a lower price without fixing anything, this situation doesn’t really make sense to me.
How much equity does your aunt have in the house? Is it normal for her to give you that amount of money?
There are still legal fees and surveys to deal with and it might not be worth it if you’re planning on selling in a year.
Post # 9
zzar45 : She is just very generous and thought it would help us out because she knows that we arent really happy where we are. It would be a chance to own our own house and to with it what we want.
Post # 10
It’s not as simple as just calling the bank and asking them to change the name on the mortgage. The house needs to appraise for at least what the current mortgage is, and you need to still have decent enough credit and a big enough down payment to get a mortgage in your name; plus no lender will write a convetional loan on a house that needs a lot of work (cosmetic or otherwise).
At any rate, if you plan to move in a year, you should decline your aunt’s offer. There is no benefit to buying a house just so you can turn around and sell it in a year; your credit will suffer for it, making it harder to buy another house in another town, and unless you have the income and credit to qualify for two mortgages, you won’t be able to keep this one to rent out if you do move away in a year and buy a home in a new town.
Post # 11
chrissybee : what has the house appraised for and what is the mortgage amount?
What does she mean by turn over the mortgage to you?
Post # 12
I agree with littleanchor with all the nitty gritty details. But if all checks out and it’s a good deal, I’d go for it. Even if just to fix it up and sell it for profit. It may take the year you’re there and you may not get to enjoy it if you leave, but you’d reap the benefits in money down on your next house.
Post # 13
chrissybee : are you not able to save and buy your own home? You can have your own home without it being your aunt’s. I might be a little weary like other PP said because she could easily sell it and move on with her life. Unless she thinks there’s too much work to be done and that nobody else will want to buy it so they will leave and it will sit? But if she really is willing to take the loss of any equity she built in the house (if she did) why not be ‘generous’ by selling it and giving you guys some of the money to buy your own home? I question everything and this doesn’t make too much sense to me.
Post # 14
DoubleD : No we couldnt buy our own home right now honestly i wasnt even thinking about owning a home until my aunt brought it up. Its not too much work, its just too much work for her. The house wouldnt really just be given to us, like money would, she would be getting rid of a house she doesnt want anymore while helping us to have our own space.
BalletParker : I dont really know how it would work but the way she made it seem would be that she/we would sign some stuff and take over the mortgage. I am honestly not 100% sure yet of the details as we havent really sat down and talked about it yet. This was mearly a idea she had and something she told me to think about.
I understand that it seem sketchy to outsiders but I know my aunt. This isnt a debate about if shes trying to pull one over on me lol. Just me seeing what the smartest thing to do is.
Post # 15
chrissybee : got it! Well, those questions I asked might be something to bring up to her, but for sure to know if you decide to seriously consider this.
Other bees had great input as well. I don’t think anyone is trying to smear your aunt, just saying this is a huge financial commitment, you want to be aware of all of the details. Sometimes people who mean well don’t understand all of the details either, you know? So, just trying to look out for you.