Westernskies
Thinks s/he gets paid by the post
- Joined
- May 5, 2008
- Messages
- 3,864
I find it amazing that anyone would have the nerve to ask for such a huge favor. It makes me think she has been spoiled by her family. To be given such a valuable house and not have it be good enough is rather telling.
+1
I will ask OP one other question... why is her PARENTS not co-signing It sounds like they have enough money and are willing to walk the plank for their daughter.. OR, HIS parents... OH YEA, they gave them a $700K house already and that was not enough...
..
I think we have at long last reached a consensus!
Ha
I'll throw a wrench into the consensus. What if the OP has a 100 million dollars net worth? <snip>
True, there are many possibilities. OP could be M. Gaddaffi looking for a hidey hole for a few bucks before it's too late. There are so many things we have failed to consider. Anyway, we are congenitally mean around here, you are perhaps asking for a too difficult cultural transformation.I'll throw a wrench into the consensus. What if the OP has a 100 million dollars net worth?
Her parents are providing part (all?) of the $300k down payment.
The picture I get is that they want to move to a particular school system which has expensive homes (around here $1.3 million is a mansion but I'm sure in California it isn't). She wants the current low interest rates but lacks the down payment and, likely, income level to be approved to buy the house with just her and her husband.
The thing is that regardless of all of that she can't afford the house. She probably can't afford half the house.
Why they can't live in the house gifted by the husband's parents is not stated. Perhaps it is the school system. If so, the better choice would be to pay for private school.
Regardless, I can't see the OP doing this as being in the ultimate best interest of his niece or her husband. I don't think it is in their best interest to put them in a financial situation that is over their head and to put them in a home where they don't have the financial means of their neighbors.
Two, they have only owned the house since Sep 2010, to qualify for $550,000 capital apprciation tax, they still have to live there for the next 1 1/2 years. This is something that I just found out today and have sent them an email asking them how they are going to handle this situation.
mP
If it is a good idea to co-sign, it is probably also a good idea to arrange for the monthly mortgage payment to be taken directly from your bank account.
I'll throw a wrench into the consensus. What if the OP has a 100 million dollars net worth? And what if the niece is the only intended heir? Cosign, buy, whatever, so what? Is she really living beyond her means? There is a big down payment and the niece and spouse own a free and clear second home that they could sell if they can't service the debt.
When the OP said he could buy the house outright with no real impact on his life I figured that he was in a different game than I am in.
FWIW
I'd still get a second mortgage to secure any sums I would be advancing now, plus any I might advance in the future, if for no other reason to protect the family interest in event of a divorce.
I arrived at this thread rather late.I do not like this situation one bit but she is my brother's daughter.
The ref calls traveling on this one, Martha. Even if the OP was hideously RICH it has little bearing here. It is not the nieces money until she inherits, it is the OPs.
Just thinking back in time....I don't think having a generous uncle helping me get into a million dollar home would have helped me in the long run at all. At some point, you have to learn to take care of yourself and your family, live below your means and save money, none of which I would have done had I had a such a gift. I guess I should be thankful that my first husband ran off with his secretary and left me to care for 2 preschoolers. It was very hard, but I learned to appreciate the value of money and my children did, too.