My MIL died last year and left my wife and BIL with house. It is in poor condition in a depressed neighborhood. Realtor says it is worth between about $46,000. We have finally remove the huge piles of debris and are ready to sell it. We really really really want to get rid of it quickly.
BIL has a friend that rents out houses and is willing to give us $40,000 for it. Unfortunately he is unable to get a mortgage, or even put down a down payment, and wants us to take back a 100% mortgage at a the lowest commercial rate. BIL trusts him totally. I don't. It is easy to see situations where he rents it and the tenant trashes it. Having no means to fix it back up, he give it back to us and we now have less than when we started. Or he gets ill and do the routine maintenance he intended. Tenant gets angry and leaves. Again we are screwed.
I would rather sign with the realtor and put it on the market for $39,000. At that price it should sell quickly; even after the realtor's commission it still seems like a better deal than selling to the friend, as we don't have to worry about getting it back from the purchaser.
As a compromise I suggested we sell to the friend for $40,000. My BIL should give my wife $18,000 and keep the mortgage. Whatever happens after that is his problem; the extra $4,000 is compensation for the risk. My wife thinks that is a great idea, but of course if it went bad we would help BIL out. NO, the whole point of it is that we have taken less than half and are done.
So, what do I do? (or at least, try to do...)
Just as an aside, her only other probate asset is an old car that BIL wants to give to a friend who needs a car but can't afford one. I didn't comment on that one.
It is also fair to say that BIL lives near the house, so not selling quickly might be more of a burden for him than for use, as he would have to let people in and such.
Reply With Quote