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Question for you Real Estate/Tax experts
Posted on 9/4/24 at 10:39 am
Posted on 9/4/24 at 10:39 am
my mil is 84, widowed, and obviously on a fixed income, her home is worth about $500k and I believe she owes about half of that, to give her some financial relief my wife wants to buy her house and let her live there, what is the most efficient way to go about this? tia
1
Posted on 9/4/24 at 10:47 am to 777Tiger
My parents wanted to do a Reverse Mortgage but then the bank would own it after they pass. I decided to enter into a Bond For Deed contract with my parents where I am essentially paying their mortgage off for them. We did a 15 year note and are 3 years in - 3.5% interest rate. I claim the mortgage interest on my taxes. They still pay the property taxes (fixed due to their ages) and the homeowners/flood insurances.
This freed up a $2,700 monthly payment for them and they still get to live in their home. When they pass we will either keep the house in the family (it's on the water in Oak Harbor Slidell) or we'll sell it and put the funds in our daughter's accounts.
Are you trying to get your MIL a windfall of liquid cash, or just free up the mortgage line item from her monthly budget?
This freed up a $2,700 monthly payment for them and they still get to live in their home. When they pass we will either keep the house in the family (it's on the water in Oak Harbor Slidell) or we'll sell it and put the funds in our daughter's accounts.
Are you trying to get your MIL a windfall of liquid cash, or just free up the mortgage line item from her monthly budget?
Posted on 9/4/24 at 10:50 am to lsu for the win
quote:
just free up the mortgage line item from her monthly budget?
this, she doesn't want the equity, I looked into her gifting it to us, or selling below the market value, also, she has an assumable VA loan at 2.99%, have experience with any of those option?
Posted on 9/4/24 at 10:54 am to 777Tiger
I don't, but I'm sure there are several people on here who do. Good luck, and I think what you and you wife are doing is great.
Posted on 9/4/24 at 10:57 am to lsu for the win
quote:thanks for the input
I don't, but I'm sure there are several people on here who do. Good luck
ETA: how did you find out about the bond for deed mortgage?
This post was edited on 9/4/24 at 10:59 am
Posted on 9/4/24 at 12:54 pm to 777Tiger
I just researched on the internet. We used a local attorney for the closing. It was really an easy process.
This post was edited on 9/4/24 at 12:55 pm
Posted on 9/4/24 at 1:12 pm to 777Tiger
quote:
I looked into her gifting it to us
Don't do this, especially if there is a lot of appreciation in the property, and you don't intend to keep it after she no longer needs it.
quote:
also, she has an assumable VA loan at 2.99%, have experience with any of those option?
Why not just pay the note for her? Or part of it? You could gift her the money each month. She would get any interest deduction, not you, but with that low of a rate, the deduction probably would not be much anyways.
Posted on 9/4/24 at 1:17 pm to lsu for the win
quote:
I just researched on the internet. We used a local attorney for the closing. It was really an easy process.
thanks again
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