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  • December 17, 2010 at 1:56 PM #18302
    rent4now
    Participant

    We have been renters (townhouse) for the last 5yrs since we sold at the top of the market. We have no sense of urgency to buy as we love living in a part of town that we would most likely never be able to afford.

    Recently we came across an interesting situation. My inlaws own a 3 bedroom sfh out in the east county (spring valley/rancho sd) area out right. They have been renting out the home for over a decade and their long time tenants just put in their notice to vacate.

    We thought about proposing to purchase the home from them. Homes in that neigbhorhood range from 300-375K. I think they would give us a decent “family discount”.

    As much as I dont care for the east county, having a front/back yard for our growing family and having neighbors we know will be a bonus.

    So my question is, what would be the best way to go about financing the home?
    Would it be better to pay them monthly for a certain term or would it be better to get a loan from a bank directly?
    Or keep renting?

    Thanks for any input you have. Or if you are currently in a similar situation that would be even better insight 🙂

    December 17, 2010 at 2:16 PM #641858
    Rich Toscano
    Keymaster

    If your in-laws finance it, you are sticking them with the inflation risk that comes with being a long-term lender these days. Unless you use a variable rate, in which case you are sticking yourself with the risk. I’d rather let the bank take the risk. (The “bank” is actually Fannie/Freddie, ie the taxpayers, but never mind that).

    December 17, 2010 at 2:16 PM #641994
    Rich Toscano
    Keymaster

    If your in-laws finance it, you are sticking them with the inflation risk that comes with being a long-term lender these days. Unless you use a variable rate, in which case you are sticking yourself with the risk. I’d rather let the bank take the risk. (The “bank” is actually Fannie/Freddie, ie the taxpayers, but never mind that).

    December 17, 2010 at 2:16 PM #641277
    Rich Toscano
    Keymaster

    If your in-laws finance it, you are sticking them with the inflation risk that comes with being a long-term lender these days. Unless you use a variable rate, in which case you are sticking yourself with the risk. I’d rather let the bank take the risk. (The “bank” is actually Fannie/Freddie, ie the taxpayers, but never mind that).

    December 17, 2010 at 2:16 PM #642315
    Rich Toscano
    Keymaster

    If your in-laws finance it, you are sticking them with the inflation risk that comes with being a long-term lender these days. Unless you use a variable rate, in which case you are sticking yourself with the risk. I’d rather let the bank take the risk. (The “bank” is actually Fannie/Freddie, ie the taxpayers, but never mind that).

    December 17, 2010 at 2:16 PM #641205
    Rich Toscano
    Keymaster

    If your in-laws finance it, you are sticking them with the inflation risk that comes with being a long-term lender these days. Unless you use a variable rate, in which case you are sticking yourself with the risk. I’d rather let the bank take the risk. (The “bank” is actually Fannie/Freddie, ie the taxpayers, but never mind that).

    December 17, 2010 at 2:25 PM #641863
    Diego Mamani
    Participant

    Does your spouse have siblings?

    There are many, many ways of structuring this. For me, it would be ideal if your in-laws sell the house to you and your spouse for 0 down, with them carrying a note. The sales price, interest rate, and length of the loan could be manipulated so that your monthly payment will be about the same as what you pay now, or the same as what your in-laws get from their current tenants, or something similar.

    But if the terms are too generous, your spouse’s siblings won’t be too happy about it.

    December 17, 2010 at 2:25 PM #641210
    Diego Mamani
    Participant

    Does your spouse have siblings?

    There are many, many ways of structuring this. For me, it would be ideal if your in-laws sell the house to you and your spouse for 0 down, with them carrying a note. The sales price, interest rate, and length of the loan could be manipulated so that your monthly payment will be about the same as what you pay now, or the same as what your in-laws get from their current tenants, or something similar.

    But if the terms are too generous, your spouse’s siblings won’t be too happy about it.

    December 17, 2010 at 2:25 PM #642320
    Diego Mamani
    Participant

    Does your spouse have siblings?

    There are many, many ways of structuring this. For me, it would be ideal if your in-laws sell the house to you and your spouse for 0 down, with them carrying a note. The sales price, interest rate, and length of the loan could be manipulated so that your monthly payment will be about the same as what you pay now, or the same as what your in-laws get from their current tenants, or something similar.

    But if the terms are too generous, your spouse’s siblings won’t be too happy about it.

    December 17, 2010 at 2:25 PM #641282
    Diego Mamani
    Participant

    Does your spouse have siblings?

    There are many, many ways of structuring this. For me, it would be ideal if your in-laws sell the house to you and your spouse for 0 down, with them carrying a note. The sales price, interest rate, and length of the loan could be manipulated so that your monthly payment will be about the same as what you pay now, or the same as what your in-laws get from their current tenants, or something similar.

    But if the terms are too generous, your spouse’s siblings won’t be too happy about it.

    December 17, 2010 at 2:25 PM #641999
    Diego Mamani
    Participant

    Does your spouse have siblings?

    There are many, many ways of structuring this. For me, it would be ideal if your in-laws sell the house to you and your spouse for 0 down, with them carrying a note. The sales price, interest rate, and length of the loan could be manipulated so that your monthly payment will be about the same as what you pay now, or the same as what your in-laws get from their current tenants, or something similar.

    But if the terms are too generous, your spouse’s siblings won’t be too happy about it.

    December 17, 2010 at 2:29 PM #642009
    Ash Housewares
    Participant

    If you get a loan from family make sure you record the note down at the county office. In the event of a bankruptcy, other creditors may attempt to go after the money you’ve paid your inlaws if the loan isn’t thoroughly documented. I have no firsthand knowledge of this but heard it from a RE attorney in the past.

    December 17, 2010 at 2:29 PM #641873
    Ash Housewares
    Participant

    If you get a loan from family make sure you record the note down at the county office. In the event of a bankruptcy, other creditors may attempt to go after the money you’ve paid your inlaws if the loan isn’t thoroughly documented. I have no firsthand knowledge of this but heard it from a RE attorney in the past.

    December 17, 2010 at 2:29 PM #641220
    Ash Housewares
    Participant

    If you get a loan from family make sure you record the note down at the county office. In the event of a bankruptcy, other creditors may attempt to go after the money you’ve paid your inlaws if the loan isn’t thoroughly documented. I have no firsthand knowledge of this but heard it from a RE attorney in the past.

    December 17, 2010 at 2:29 PM #641292
    Ash Housewares
    Participant

    If you get a loan from family make sure you record the note down at the county office. In the event of a bankruptcy, other creditors may attempt to go after the money you’ve paid your inlaws if the loan isn’t thoroughly documented. I have no firsthand knowledge of this but heard it from a RE attorney in the past.

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