What Made you Smile/What Ticked you off Today?

[MrPopo]

Well, the first thing is that it will cost you nothing to get in contact with a few banks and see if they'd be able to offer you a loan. Another thing you'll need to do is come up with some reasoning for your great aunt explaining that even though she's family you're still going to have a house inspection done.

Since it's out of state the biggest concern for the banks is the fact that you won't be living in it right away, and will be making two monthly payments (your current rent and the mortgage payment). Also, do you have the 20% down + title fees? Not having the 20% will increase your risk and make you a less attractive loan candidate, as well as requiring you to pay mortgage insurance.

What kind of time constraints are you working on? Is your great aunt expecting to sell the house before you'd be ready to move in?

[Luke]

Do you guys have any advice?

Before I give you any advice, remember that you'll probably get a flood of advice and remember it's coming from strangers.

But, my advice:

This is one of the biggest decisions you'll make in your life, financially speaking. Go with your gut, and if you don't absolutely want to go home to that house for a good part of your days, pass.

Is $100,000usd a flat number?

Without discussing your financial figures, I would place at the very least $15,000usd as a down payment to show the bank you mean business. If you could place $25,000usd down you would be in great shape.

Do some footwork. Seriously, screw the Internet on making bank decisions. Go to as many banks as you can stand, review their offers, and compare it face to face with a loan manager.

Another Internet no-no. Don't mess with any Credit Report sites. At all. Don't. No. Stop.
Any creditable bank is going to do that for you for free.

Be there for the inspection.

Good luck.


I've had friends who have taken out two loans from two banks to meet their total...but I don't think that's the smartest idea.

[Blu]

Chicago this weekend! Off to see the Chicago Fire trounce DC United (small frown because I love DC United, but boy are they rubbish this year)
Seeing some of my best buds from High School
So hot.

[Luke]

Well...

Basically read my mind.

Sounds a bit nuts, but come to think of it, having a realtor involved might be beneficial to both parties (assuming that one isn't already involved). It may actually save you money.

[KitKatCara]

She told me that she isn't interested in putting it on the market and wants to keep it in the family. The only other relative that wants it is a walking joke, so I don't think that's a threat. If I tell her that the bank requires an inspection, she won't mind. Money is money to her. It's been sitting empty for six years now, so I have no idea if anyone else had their eyes on it or not, but again, she wants to keep it in the family. (due to drama that included the loss of the home that my great grandfather built with his own hands and all of my great aunts and grandpa was born in. She is horribly bitter over that.) She is also in her late 70s, so I have to keep in mind that she won't be around for much longer, even if she is healthy.

The 20% thing is going to get us. We don't have that at all right now. Jinx could probably get it in a few months working overtime, but that would tear him apart with the stress and lack of sleep and I can't put that on him. I'm not sure if my FAFSA would count toward that either. Some places look at it as income, and some don't. If it does, then that could save us, but then again that might be on the line of defrauding the government and I don't really want to go there.

If she waits, I will hopefully have a paid (and that's a big maybe) internship at a Funeral Home in about 16 months, but as she said, she is getting old. She may not even want to wait that long.

@Luke

The home is appraised at 127,000 but she said that she just wants 100,000 and to wash her hands of it.

I hate doing internet banking, the only reason I got my first credit card through the bank website was because in La until you are 21, you can't apply in the branch (At Capital One at least) so I established my credit with that at either 17 or 18. We used the card for purchases like the carseat and other baby things but never maxed it out and always paid on time. The credit score I got was from the bank. I don't trust any online websites with that kind of info. I've seen how identity theft can ruin people. No thanks.

It's just coming up right now to not having the money. The stupid car cost us almost 5,000 to fix, so that put us behind greatly. We can swing two payments, it's just having 20,000 right now that is keeping us from the loan. The two loan idea is just stressful to think about. Jinx isn't good with stress, and I'm not working so that would be too much.

She also stated that she didn't want to get a Realtor. She just wants the property gone.

[MrPopo]

I'm sure you've run the numbers on your end that says you could afford two payments, but banks will be much more wary of you having 80% of your income tied up in bills every month. So that could be a stumbling block.

Now, don't take this the wrong way, but if you're concerned about your great aunt passing before you can raise the money, have you talked with her about what the plan is for the house in the will?

[Luke]

That's a tough spot to be in.

Any alternatives? Sounds like it is a "take it or leave it" situation, but is there any chance at all of an installment plan?

[KitKatCara]

I'm sure you've run the numbers on your end that says you could afford two payments, but banks will be much more wary of you having 80% of your income tied up in bills every month. So that could be a stumbling block.

Now, don't take this the wrong way, but if you're concerned about your great aunt passing before you can raise the money, have you talked with her about what the plan is for the house in the will?

Her kids are going to get it probably. I'm not really concerned if I can get a loan, but if not and she accepted payments, then she probably would pass before they were complete. Then again, her oldest sister is 97 and still climbs trees and runs and stuff (funny story about that actually). My dad's side of the family are pretty good at cheating death.

I don't want to bring it up because I don't want to appear that I'm waiting for her to die to jump. We aren't close at all, and things like that are typical in my family. Most of them are a bunch of backstabbers, and I work hard to not be associated with them. The fact that she even considered selling to me surprised me, she hated me as a kid.

I tried offering a payment at tax season and monthly payments, but her words were "Money means nothing when you're dead. All or nothing, I don't have the years to wait."

[prfsnl_gmr]

Do not buy the house.

(1) Credit is tight right now, and most reputable banks will not extend financing to you for a "second" home.

(2) Houses are a lot of work, and they are expensive to maintain. You have enough financial stress dealing with your automobile, your apartment, and your savings. You do not need another drain on your resources in the form of either a mortgage payment or maintenance costs.

(3) You aunt is not giving you a great deal. In the current real estate market, paying $27K off of a house appraised at $127K is not a huge discount. If she really wanted to give you a deal, then she really drop the price by at least 50%.

(4) You and Jinx have a young family and are doing well for yourselves in a new city. If you are going to save up for a down payment, then you shoudl save up for a down payment on a home that you will live in and that you will choose for your family. Houses are big purchases, and you should be sure that you are getting exactly what you want.

We aren't close at all, and things like that are typical in my family. Most of them are a bunch of backstabbers, and I work hard to not be associated with them. The fact that she even considered selling to me surprised me, she hated me as a kid. I tried offering a payment at tax season and monthly payments, but her words were "Money means nothing when you're dead. All or nothing, I don't have the years to wait."

This is not something you would say if you were giving someone a deal, and - unless you have a copy of the appraisal report in your hand - I very much doubt that the property was appraised at $127,000. Regardless, she is giving you, at best, a "cash" deal - not a "family" deal - and you should pass on it. (If you are interested on the property when she passes, you can probably negotiate the purchase from one of your cousins.)

[Jmustang1968]

Depends on where you are prfgamer...

In the Houston area right now real estate is hot. Values have been increasing and you are likely to get more than your appraised value. Our neighbors sold their house at asking price and on the first showing a few weeks ago. I'm not sure how the Louisiana market is though.

I would also not buy it if I am not planning to move there for over 2 yearsm no need to have an unnecessary financial burden.