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131

Because you don't have the jobs lined up, it makes more sense to rent for a few months for a couple of reasons: A: You should never deplete your emergency fund of 3 to 6 months for non-emergencies B: Once you land a job, you can make a better judgement as to where to live for the commute. C: Car loans and credit cards are expensive forms of debt that ...


79

The bank only cares about getting paid the owed amount as quickly as possible. Anything more than that the bank has to give to the owners whose property they're auctioning. Also, a house that could sell for $250k on the open market if the sellers wanted to sell and move out might be worth a lot less if the sellers don't want to move, might refuse to leave ...


75

Something sketchy is definitely going on. Real Estate agents are obligated under the National Association of Realtors Code of Ethics to take all written offers to the homeowners, regardless of how low it is unless the homeowner has specified a minimum offer amount or waived, in writing, that obligation. Your brother in law can ask for rejections in writing ...


71

You're making $100k together per year: you're not in the donut hole, you're in the top 25% of all households, and the top 10% of non-family households (as yours would be). To be blunt, you're not in the "rely on assistance" area: you're in the "save up for your downpayment" sector. My suggestion would be to figure out a way to save more than $200-$400 a ...


61

what I should think about. How much cash can you put toward a down payment? Anything less that 20% will significantly raise your mortgage amount. What if your roommates decide that they want to move again - will you sell the house or find new roommates? How strict on rent payment are you going to be with them? Will you give them more grace because they ...


55

You said that you figured the interest you will have paid over the first 3 years will be the same with the 15- and the 30-year mortgages. That is not quite accurate. Let's look at the numbers. From the monthly payment numbers you gave, it looks like you were figuring on a 4.0% rate. That seems quite high, as the current national average mortgage rates ...


41

It is highly unlikely that this would be approved by a mortgage underwriter. When the bank gives a loan with a security interest in a property (a lien), they are protected - if the borrower does not repay the loan, the property can be foreclosed on and sold, and the lender is made whole for the amount of the loan that was not repaid. When two parties ...


41

Based on the question update, the seller intends to declare bankruptcy, and in order to do so they must have a certain minimum amount of debt based on their income and assets. They must be currently hovering around the minimum debt mark, and if the house sells for too much their total debt will be slightly too low to still declare bankruptcy. They need the ...


38

It doesn't feel savvy to offer without Conditions Precedent like Financing Condition, Subject to Appraisal Inspection, Legal Review, Survey. For the average buyer, those typical conditions are very important. But for a team of investors, they are handling many of these internally. The purpose of visiting the house before making the offer is to do an ...


37

There are often taxes (by whatever name) that scale with the property price. Agents’ fees are also often a percentage of the property price. These costs are usually a small but noticeable percentage of the total price. Aside from this, you’re mainly looking at the difference between what you get and what you pay. If you are buying and selling properties at ...


33

Does it make sense for me to keep the house Are you willing to be a landlord for $91 a month? What happens if your house goes unrented for 3 months? 6 months? How will you pay its mortgage? In my opinion, you don't have enough buffer to make this worth the risk. If you could afford for it to go unrented for 6 months then it might be a good investment in ...


32

A mortgage is simply a loan backed by a property (and, because it's both very large and very common, covered by some specific laws). As such, the bank isn't an "investor" in your house; it simply is lending you money with the property as collateral. So, it doesn't get any share of the profit. As long as you sell the house on your own, for more than you ...


31

"...instead of all of us draining our money into a landlord..." Instead, you are suggesting that still everyone (except you) will drain their money into a landlord, just that now the landlord is you. I guess what that really means is that you will need to have landlord tenant agreements between you and your roommates. When things break or need replacing ...


31

@Adam Klump gave the advice I would personally follow, but I want to give a third possibility. I'm not from the US, but it seems to me that you don't have to buy the house outright in cash, you still have the possibility to take a loan. You'll still be able to pay it off whenever you want, and may be able to negotiate low interest rate and have the money ...


24

As Patrick87 cogently points out (+1), anything more than the outstanding debt on the property being foreclosed on (plus various fees for filing the foreclosure paperwork etc) belongs to the original owner (the person(s) being foreclosed upon), and not the bank. Remember also that the bidding starts at the price the bank sets, and the bank can choose to ...


23

That seems a very bad offer, it borders on fraud. In the current US economy, you should be able to get between 3 and 4 % APR (and that number is what you should look at). That means that for $300,000 over 30 years, you'd pay $1,265 to $1,432 per month. If you are able to pay more than that monthly rate, you should go for less than 30 years - 20, 15, 10, ...


23

You are overlooking the real cost of automobiles People have a strong tendency to wildly delude themselves about the true, total costs of automobiles. AAA tallies up the total, real ownership cost of a reasonably recent car. It came out to $8,841 last year for a 15,000 mile/year car, with SUVs pulling up the average. You didn't say where you aim to ...


22

The biggest factor is: Are you really going to invest the difference? It is easy to say you will now, but unless you have a ton of discipline or some form of automatic investing, that is a hard thing to do in practice. Another consideration is that the 30 year loan will usually cost you more over the life of the loan because of the length of it. Another ...


22

As I understand it, if the "borrower" puts a down payment of 20% and the bank puts down 80%, then the bank and the "borrower" own the home jointly as tenants in common with a 20%-80% split of the asset amongst them. The "borrower" moves into the home and pays the bank 80% of the fair rental value of the home each month. {Material added/changed in edit: ...


22

Assuming United States As far as "Will they will allow you to do that?" Of course! (How do you think renters get utilities?) As far as the responsibility to pay, that's up to you. If you are setting things up like that to prevent being swamped with bills which your girlfriend has no legal obligation to pay, that would work. However, if something were to ...


22

He needs to go see a lawyer to find out what all his options are, and the consequences of any of them. Then he needs to get help extricating himself from this situation, in whatever fashion he chooses: buyout, giveaway, what have you. This situation involves property, which involves money, so definitely get professional advice on this. Otherwise, 20 years ...


20

You are going to need a lawyer anyway so check with him. But here is a path you might be able to go down. Put the house in your name right from the get go. He gives you the money but you sign over a promissory note to him so that you net less than $14000 (gift tax annual exclusion for the calendar year). He can gift everyone in your household 14k per ...


19

Is all interest on a first time home deductible on taxes? What does that even mean? If I pay $14,000 in taxes will My taxes be $14,000 less. Will my taxable income by that much less? If you use the standard deduction in the US (assuming United States), you will have 0 benefit from a mortgage. If you itemize deductions, then your interest paid (not ...


19

I will expand on Bacon's comment. When you are married, and you acquire any kind of property, you automatically get a legal agreement. In most states that property is owned jointly and while there are exceptions that is the case most of the time. When you are unmarried, there is no such assumption of joint acquisition. While words might be said ...


19

Is my calculation correct? More or less. Your list of expenses is not complete and repair/maintenance expenses can vary wildly. You'll also depreciate the house (not the land), so with your current numbers you could be running a loss for tax purposes which can offset income tax on other income and basically act as a discount to your cost of equity, so ...


18

I'm calculating that to about a 7% apr, which given loan rates available today seems a bit high. I wouldn't get too caught up on what that equates to over the life of the loan. There are a lot of forces in play over a 30 year period, namely the time value of money. 30 years from now a dollar will be less valuable in real terms due to the forces of ...


17

The best answer to this question will depend on you and your wife. What is 'fair' for some may not be 'fair' for others. Some couples split expenses 50:50. Some split proportionately based on income. Some pool everything together. What works best for you will depend on your relative incomes, your financial goals, living standards, and most importantly, your ...


16

They don't want to be on the hook to fix whatever the inspection turns up if they want to sell the house. They may want to benefit from what turns up in the inspection without going through the initial portion of the sale process until you do. The Realtor is not on your side. He wants to move things forward to a closed sale so that he gets his commission. ...


16

Perhaps the commenter is paying cash and is a qualified surveyor who can do their own appraisal and survey at no cost, and has purchased enough properties that they can spot obvious pitfalls in the contract. And then the risk of something going wrong is small enough that the $5K saving more than outweighs it. If you only buy a couple of houses in your life ...


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