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bubblesitter
2011 Aug 26, 4:14pm
but am not in a position to assist him
is there anything I can do to prevent inheriting the place in a few years,
No intent to offend you but you may want to put your priorities behind and help your Dad cuz you are keen on getting something in return.
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2011 Aug 26, 5:04pm
>My father is VERY old school and will have to declare bankruptcy if he can’t sell
If your father is 62+ and wouldn't mind staying where he's at for at least part of the year he could look at a reverse mortgage.
The LOC option has a pretty reasonable interest cost at the moment -- 4.2% -- the index (1 Mo LIBOR) is 0.2%, the margin is 2.75% to 3.0%, and FHA MI is 1.25%.
A reverse mortgage would cost ~$2000 to get up to ~50% of the property value as a LOC and ~$2000 + 2% of the appraised value to get ~66%.
Not sure where LIBOR is going though. If the LOC is too risky, he could look at fixed-rate options too. These require taking a lump-sum out of the property.
To qualify for a reverse mortgage the property has to pass a HUD appraisal.
No intent to offend you but you may want to put your priorities behind and help your Dad cuz you are keen on getting something in return.
I can't do that without risking my own financial security. I'm asking for advice for my dad, not myself. But if there's no way to legally help him, I need to protect my financial security and figure out some way NOT to inherit if my father is unable to sell before he passes.
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2011 Aug 26, 5:59pm
Inheritance is optional. Even if he dies intestate, you can refuse to inherit stuff.
Okay, here’s the situation. My father was disabled in a car accident in 2006 and having already determined that there might be a downturn in real estate (never saw the economic crisis coming, but thought maybe 10 -15% drops in housing) decided to be safe, sell his co-op in NYC, and move upstate where he could buy with cash from the proceeds. Nearly a year later, he did. By then the market had begun to soften, but he still got 96% percent of what the co-op was worth at the market’s top and moved. Long story short, the new co-op he bought upstate inspected well but was a money pit. Now, my father, on only social security, needs to sell it, pay off the credit card debt he accrued as a result of repairs, and hopes to move to a smaller place in Florida. This time he’s gonna stay with friends and get multiple inspections before deciding on a place to hopefully avoid a repeat. Anyway, just as he got his first offer on the current co-op, the co-op’s board calls his realtor and says they passed a new rule that puts a floor on how low you can sell one of their units for, and ofcourse, the potential buyer wouldn’t raise his offer. The realtor says that what they’re doing is legal in NY. My father is VERY old school and will have to declare bankruptcy if he can’t sell. He’s mortified. I love him dearly, but am not in a position to assist him more than a few dollars and a ½ gallon of skim milk every once in a while.
Does anyone have any ideas what my dad can do? I hate to be selfish, but is there anything I can do to prevent inheriting the place in a few years, should he pass on before he can sell? I don’t want to lose my sole inheritance, but I don’t want to live in upstate NY either, and I refuse to pay maintenance fees on a property I can’t live in or rent out, and never voluntarily signed up for.
#housing