The real estate business bug has recently bitten my family. Specifically purchasing homes, flipping them, and then putting them back on the market. A great business! But recently I was approached with a proposition for a home to be purchased in my name. The reasons for doing so are because one of the family members recently purchased a new home and a new car. The other family member’s credit is not so good I assume. My credit is pretty good. I’m in my mid-20’s, no kids, still at home with parents, and saving money every week. They’ve let me know I could get a lump sum of money from the purchase, which sounds great. But I am not a money hungry individual. I love my family, but I know that the mix of family and money can sometimes lead to a Judge Mathis episode. I was contemplating having a contract or agreement drawn up for precautionary reasons. I know that life happens and anything can make this great opportunity into a terrible situation. I want to protect my future…my credit and my future family. Is anyone aware of some specifics that should be covered in this agreement that is legally binding (that covers someone in my position)? What are some questions that I should have answered to before signing any papers?
I love my family, but business is business!!!
2007-03-26 03:52:38 · 6 answers · asked by On the Rize 2 in Business & Finance ➔ Renting & Real Estate
NEVER mix family with business, that's a great way to destroy your credit and a lot of relationships as well. If their credit isn't good enough for them to do what they want on their own, maybe that should tell you something....creditors don't think they'd get their money back if they chose to lend it to them....you should take the same approach.
People make decisions every day. Obviously a new car and new house was more important than this or they wouldn't have bought them. Let them figure it out on their own....tell them you'd have to feel comfortable making the payments should something go wrong & you don't feel like you could at this time. They might be upset for a little while, but they're your family they should understand that they can't burden you for selfish reasons.
2007-03-26 04:03:02 · answer #1 · answered by Roland'sMommy 6 · 1⤊ 0⤋
If you purchase a home in your name be prepared to pay for it should the family member be unable to make a payment as you will be ulitimately responsible for the mortgage. I don't think a reputable mortgage loan company would loan you the money for the home unless you have your name put on the deed. Make yourself the sole owner of the home so that should you need to sell it due to default on the family member, you can do so without their consent.
Personally, I wouldn't do this as money has ruined many a family relationship.
2007-03-26 04:05:19 · answer #2 · answered by Stefka 5 · 1⤊ 0⤋
This sounds like a really bad idea.
Worst case scenario - you're on the hook for mortgage payaments and property taxes etc.
If they really want to do this then they should invest something too. Sounds like you would be risking everything (like your credit rating and financial future) and they are risking nothing. If it doesn't work and it blows up in their face, what do they loose? Nothing! And where does that leave you?
Bad bad idea
2007-03-26 06:57:27 · answer #3 · answered by babypocket2005 4 · 0⤊ 0⤋
Nope, don't do it. Politely decline the offer and say that you don't consider anything you ain't an expert at.
Money and family don't mix.
If they aren't good credit risks to a lender, what would make them a good credit risk to you ??
Good Luck
2007-03-26 04:02:51 · answer #4 · answered by snvffy 7 · 2⤊ 0⤋
don't make a purchase you're not ready to make, especially one so large. If you really want and can afford home ownership, then go for it.
2007-03-26 03:59:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
DON'T DO IT!
Business and family don't mix...ever.
2007-03-26 04:00:34 · answer #6 · answered by AuntTater 4 · 2⤊ 0⤋