I am in my last year of law school, still searching for a post-graduation job. When my parents filed for bankruptcy, they were allowed to stop paying on their home morgage (around $1200 a month) under the Bankruptcy Code. This "automatic stay" has been in place since my dad filed, a total of 6 months. Hence, for 6 months my parents have been living in their house that is about to be foreclosed by the bankruptcy courts without paying a morgage. You think they would have saved money for moving right? NOPE. They don't have a dime!
I am a LOT wiser with my money. I have a $5000 mutual fund account, over $3000 in savings, 2 jobs in which I place "extra" money in money market account.
They have paid my car note and insurance ever since I have been in law school. I feel that I should help them with their down payment on their new house but I am scared because they are not financially responsible and I need that money to pay for bar dues, bar classes, the bar itself, moving expenses, etc.
2007-01-09 00:45:38 · 8 answers · asked by darshunk 2 in Business & Finance ➔ Personal Finance
Help them out a little. They have taken care of you for all your life. I would help my parents if I could no matter how irresponsible they were. They have always been here for me and kept a roof over my head. Just make sure that the money goes toward the down payment. Just give what you can afford without putting yourself in financial hardship. You seem like a good hearted person and your parents are lucky to have you. (Just remember, you are lucky you have them too.)
2007-01-09 00:59:54 · answer #1 · answered by dmkd140 3 · 0⤊ 0⤋
You know, this kinda sounds like the same situation I am in. Only I'm the Mom. What I am going to say, I'm just saying. I'm not screaming. You kids don't really understand. You are getting off easy right now. You are also living there, with not paying anything. And, they are paying what they have to, to survive. You have the extra money to do the things you are because they are paying for things for YOU! Otherwise, you probably wouldn't be able to. Car payments and insurance are not cheap! That could have been money they spent on their house, but no....they chose to spend it on you to help you out. And, if all is lost, and they cannot afford to keep their house, why would they pay on it? That is just throwing money away. If they file, then it all just gets put on the BR. Actually, it's illegal for them to pay on it. If your in law school, you should know that. If you have the money to help them, then you should. Look at all they have done for you! And, there is a difference between not being financially responsible and just not having enough to live on in todays world! You will learn this once you have to live on your own. And pay ALL of your own bills. Fact is, they are your parents....you SHOULD help them out if you are able to. Let your bills wait alittle and help them. After all, this is what they have done for you.
2007-01-09 01:05:49 · answer #2 · answered by Shari 5 · 0⤊ 0⤋
The definition of a down payment is money you pay up front out of pocket. What you're asking is to have a 0% down loan. As other's have mentioned, there are a couple specific programs which allow this, but you need to qualify for them. Before the housing bubble burst, 0% down loans were more common. Most of those that got those loans have since lost their homes to foreclosure. Banks don't do this anymore.
2016-05-22 22:30:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Its kind of you to help them out,but being that they just declared bankruptcy they may have a lot of trouble getting a new house, and if they do, their interest rates are going to be horrific.
As long as you don't expect to get the money back, I would say help them, but you have come this far with law school, it would be a shame if you couldn't move on with your career.
There is an old saying that if you give money to your family don't expect to get it back, consider it as giving a gift.
Maybe once you are situated with your career and place to live, and see in which direction they are going, then help.
Don't jeopardize your future.
2007-01-09 01:15:59 · answer #4 · answered by brown.gloria@yahoo.com 5 · 0⤊ 0⤋
I think you all should go to financial classes prior to purchasing another home. If you give them this money who is to say they won't loose the new house too?
I suggest taking Financial Peace University with Dave Ramsey. He lays it out on all financial matters and it sounds like all of you could benefit from learning more about money. Go to his website to find a class near you www.daveramsey.com
2007-01-09 01:48:57 · answer #5 · answered by mldjay 5 · 0⤊ 0⤋
That is a sticky situation! If I were you I'd help them out, no doubt, they are your parents and have been there for you in the past but, maybe with stipulations.
"Mom, Dad I love you but you suck at money management! I will help you get out of this mess but you need to get back on track fast, I need to make sure that I can pay for my schooling so I can have a secure future!"
Good Luck!
2007-01-09 00:58:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
ohh come on there your parents like the cared for you all there life all they ever wanted is to see is you on top all parents are like this an since you say you're wiser with money you can help and know this if you do this maybe your children will do something almost the same to you some day but remember family is thicker than blood.
2007-01-09 00:57:05 · answer #7 · answered by d.i.c 2 · 0⤊ 0⤋
Yes, they will ever live to remember you for this financial support.
On your own side, pls contact friends to help you out.
2007-01-09 00:56:32 · answer #8 · answered by joe 3 · 0⤊ 0⤋