Buying a house, but not to live in. Sigh.

[Urchina]

Hi all. This post is in the "be careful what you wish for" category.

DH and I have been aggressively paying off debt and saving for a down payment for a bigger house. It was really looking like we might be able to buy a place in our neighborhood this summer -- and I was excited.

Then, my MIL ran into financial difficulties. Her home, the family home, is at risk of foreclosure.

So, the siblings are going to pitch in money, pay down the loan, refinance it for lower monthly payments and then....

DH and I are going to pay the mortgage on it each month, what MIL can't pay and the rent from the back unit won't cover. This is an option we have chosen after careful and lengthy deliberation.

Pluses to this: We're saving the family home, which is unique and has strong positive associations for us all. DH and I are getting a long-term real estate investment in an area with a traditionally strong economy, and it will possibly be an income generator in the future. Family functions and holidays will continue (buying a smaller place for MIL is a financially sounder option, but having a family gathering place is very high on our list of priorities). We're setting up a family ownership agreement with a competent attorney, so everyone's interests are protected and it's very clear what is going on.

Minuses: I've done the math. We can swing the mortgage on two places but not on three. Our aggressive debt repayment plan is about to get a lot longer.

Sigh. Wierdly, however, I'm kind of excited about more debt to slay, because I kind of feel like we're good at that.

Bigger house and possibly ER? Seems unlikely right now.

Working on being happy with what I've got. And glad we're in a position to help.

 

[haha]

Working on being happy with what I've got. And glad we're in a position to help.

You have a very nice attitude.

Ha

 

[W2R]

Sorry to hear this. I have confidence that you will be able to "slay that debt" and move on to a bigger house and ER. Must be pretty disappointing right now, though.

 

[Moemg]

...

DH and I are going to pay the mortgage on it each month, what MIL can't pay and the rent from the back unit won't cover. This is an option we have chosen after careful and lengthy deliberation.



Working on being happy with what I've got. And glad we're in a position to help.

This is really a nice thing to do . Whenever I have done something like this money seems to flow my way so I hope it's the same with you !

 

[Nords]

Working on being happy with what I've got. And glad we're in a position to help.

You're using money as a tool to accomplish what's important to you. Things could be a lot worse than that.

This will be a real gut check on sibling relationships & harmony.

 

[Urchina]

Thank you for the kind words, all.

Nords, that's exactly it. This is more important to us, right now, than a bigger place. So that's where the money is going.

As far as family and sibling harmony -- we are so very, very fortunate to be in very collaborative families where assets are easily and freely shared. But we are still having that legal agreement drawn up, so that when time comes to sell the house or buy others out, we have an agreed-upon way to do it. And no hard feelings, as nobody is being coerced into this.

 

[Ed_The_Gypsy]

Good going, kid.

 

[pimpmyretirement]

Will you at least be able to get the bank to do a short sale, to lower what she owes?

Nice thing to be doing.

 

[Jay_Gatsby]

Then, my MIL ran into financial difficulties. Her home, the family home, is at risk of foreclosure.

Not to be nosy, but can you tell us what type of "financial difficulties" your MIL ran into? Were they of her own making, or are they a sign she is no longer able to handle her financial affairs? In either case, I would be very concerned.

 

[toofrugalformycat]

Urchina, I'm sorry that your aggressive savings will have to go on a bit longer, but I admire your attitude, and I hope that you realize (I think you do) that you are extremely fortunate to have POSITIVE associations with a family home, and a family that WANTS to gather once in awhile.
That seems so rare these days, even more rare than having a lot of money socked away.

 

[DAYDREAMER]

Slaying debt is a big motivator. Keeps the $$ focus on the enemy (interest).

Good on you for keeping the family interests at heart. You must have a close family!

 

[stoutboy]

This is yet another example of why it is absolutely vital to sort your own finances first before you worry about your kids/grandkids. The absolute best gift you can give your children is not to be a financial burden to them.