SRS Question on moving out.

Discussion in 'On Topic' started by korverftw, Apr 4, 2009.

  1. korverftw

    korverftw New Member

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    I'm 21, and a sophomore in college. I have a ways to go. I live at home with my mother...we get along well usually, but I'm depressed and I'm not friendly very often. Anyway her mother recently passed away and she inherited a lot of money which is huge because we've always done OK, but she's always had a lot of debt. I got some money too which I've never had before (10k, but I've locked up 7k of it so I can only touch 3k). She paid off all her credit cards and other debt and offered to buy me a foreclosed condo just across the street from her backyard. She said I would have to make payments to her and I would eventually own it. Right now I spend my paychecks on random things and don't really have a problem sacrificing that to pay for a place to live. I don't make too much money but I do have enough for payments.

    I told her no, because I'm saving pretty well right now and wanted to purchase my first home by myself. I'm about half way there and I can withdraw some extra money from my IRA (they allow first-time homeowners to do so) when necessary.

    After thinking about it more it may be a good idea. I'd save money on payments (most likely) since she could get a better interest rate than I ever will. Not to mention the place is a bargain right now. Moreover, I've been dying to move out for a while now.

    What do you think?
     
  2. bigballofyarn

    bigballofyarn OT Supporter

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    I think you should take your mom's offer. Will you just be paying her rent or making the actual mortgage payments on the house? If the house is under her name, and let's say you have a bad month, I'm sure she'll excuse you and let you make a lower payment and cover the rest for you. If you were on your own, the bank basically says "screw you" and tacks on some nice interest charges that you can't pay either.

    You stated you have a good relationship with her, so living across the street shouldn't be a problem. You'll have your own freedom and space, but will be close enough to home that you'll still feel comfortable with your surroundings.

    So assuming you'll have low payments here, I say go for it. I don't see why you'd be obligated to stay there forever anyway. Once you own it, you can rent out a spare room for extra cash, or rent out the entire thing, and use that money towards your own new place.
     
  3. korverftw

    korverftw New Member

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    Thanks for the reply. She said I would be "buying" it from her so I'd imagine I'll be paying her mortgage payments. It does have a spare bedroom and I think I could find somebody to rent it out as well. I will have a talk with her about it and see if I can get some more info.
     
  4. bigballofyarn

    bigballofyarn OT Supporter

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    Was she left with enough to just write a check for the whole thing? (I don't know how much housing is in your area). I'm just thinking that if she has enough to buy it in one payment, she won't have obligatory bank payments either. Then you can work out an even better payment plan with her.
     
  5. korverftw

    korverftw New Member

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    I will have to ask her. I know the place was just foreclosed and is selling for roughly half of what it was 2 years ago. Perhaps she is planning on just paying it off immediately.
     

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