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The best thing to do is to clean the house up really well so that when your uncle puts it on the market it fetches the best possible price. This will pay off your dad's mortgage. This is the best thing you can do to help your dad. He then sorts out how to split with his brothers anything over $228K + real estate fees and inheritance taxes. I would be surprised if the brothers end up with $50K each which is why they are so eager to stick it to you.
By cleaning the house up so it sells quickly you will help your dad get out from under a $228K debt. That is a really good thing to do to help your dad.
Quote:
Originally Posted by Blazah1080
He helped me pay for my first car, my college, paid for my car insurance till 27 years old, etc etc etc. Point is he did a really good job as a parent but at the same time he has been building this debt for SO LONG that as a son I'm worried he can't get out of it.
I'm sure your dad loves you very much which is why he tried to give you things. But in reality he never had the money to do this. He was just borrowing it from relatives and building up debt. This gave you a great start in life. The best gift you can give him is to continue with the great start he gave you and make good decisions. Moving in with him and helping him pay is mortgage may help him so that is one option. The other is to start working on saving up to afford your own place so that when your father can't work any more and his mortgages become delinquent and he gets foreclosed on, he and your mom will have a place to live. Unfortunately the stress of always being in debt does affect people's health so it may be just your mom at that point. But by having a place you can afford that is secure you will be giving him a gift by taking care of your mom in her old age. I would suggest getting rid of the boat and two of the cars so that you lower your own debt load and make yourself a more attractive borrower so you can get your own place at some point in the future.
The best thing to do is to clean the house up really well so that when your uncle puts it on the market it fetches the best possible price. This will pay off your dad's mortgage. This is the best thing you can do to help your dad. He then sorts out how to split with his brothers anything over $228K + real estate fees and inheritance taxes. I would be surprised if the brothers end up with $50K each which is why they are so eager to stick it to you.
By cleaning the house up so it sells quickly you will help your dad get out from under a $228K debt. That is a really good thing to do to help your dad.
I'm sure your dad loves you very much which is why he tried to give you things. But in reality he never had the money to do this. He was just borrowing it from relatives and building up debt. This gave you a great start in life. The best gift you can give him is to continue with the great start he gave you and make good decisions. Moving in with him and helping him pay is mortgage may help him so that is one option. The other is to start working on saving up to afford your own place so that when your father can't work any more and his mortgages become delinquent and he gets foreclosed on, he and your mom will have a place to live. Unfortunately the stress of always being in debt does affect people's health so it may be just your mom at that point. But by having a place you can afford that is secure you will be giving him a gift by taking care of your mom in her old age. I would suggest getting rid of the boat and two of the cars so that you lower your own debt load and make yourself a more attractive borrower so you can get your own place at some point in the future.
Thanks, it has taken all day of thinking about this, but I understand your point and I'm seeing that this really is the only option.
I believe part of the reason he's so slow to pay off loans is because he has to pay a high insurance rate for this "unable to work" thing. I will ask him this as well.
I'm going to have lunch with my father and the uncles as soon as they can all get together. I want to hear how they think this is going to work. Everything I've read says that it is NOT possible to just add me to a house and let me take out a loan on the free part. I'm hoping this is the case, because I don't want to be forced into saying NO to them....I will if I have to though (if their plan will work).
My offer is going to be.... rent me the house at 500/month, for one more year. I will continue cleaning up the yard (I'm 70% done with it) paint the inside white..... clean the place top to bottom and make sure it looks as nice as possible (without renovations).
I guess that's the best I can do. If I thought handing him my entire pay check would help - I'd be tempted......but which this much money owed.. it's nothin.
Would foreclosure (on his house) be something advisable in this situation?
Thanks, it has taken all day of thinking about this, but I understand your point and I'm seeing that this really is the only option.
I believe part of the reason he's so slow to pay off loans is because he has to pay a high insurance rate for this "unable to work" thing. I will ask him this as well.
I'm going to have lunch with my father and the uncles as soon as they can all get together. I want to hear how they think this is going to work. Everything I've read says that it is NOT possible to just add me to a house and let me take out a loan on the free part. I'm hoping this is the case, because I don't want to be forced into saying NO to them....I will if I have to though (if their plan will work).
My offer is going to be.... rent me the house at 500/month, for one more year. I will continue cleaning up the yard (I'm 70% done with it) paint the inside white..... clean the place top to bottom and make sure it looks as nice as possible (without renovations).
I guess that's the best I can do. If I thought handing him my entire pay check would help - I'd be tempted......but which this much money owed.. it's nothin.
Would foreclosure (on his house) be something advisable in this situation?
Paint the house two-tone - white on the molding, off white or tan or whatever is popular in your local on the walls. And include the probate attorney in the lunch.
I think you're a helluva SON for doing so much to help and for caring so much about your family.
My offer is going to be.... rent me the house at 500/month, for one more year. I will continue cleaning up the yard (I'm 70% done with it) paint the inside white..... clean the place top to bottom and make sure it looks as nice as possible (without renovations).
I guess that's the best I can do. If I thought handing him my entire pay check would help - I'd be tempted......but which this much money owed.. it's nothin.
Would foreclosure (on his house) be something advisable in this situation?
Actually I was thinking your offer should be you would spend the next couple of weeks getting it squeaky clean so they could get it on the market as fast as possible. You could also offer to stay there until it is sold to make sure it stays clean and doesn't get vandalized. It could take longer than a year to sell since you mentioned in an earlier post that houses in the neighborhood were just sitting on the market.
In terms of foreclosure on your dad's house he is the only one who can determine that. It sounds like he's been bad with money for over 40 years which means his problems go way deeper than you can help with. Also he is likely hiding alot of debt that you don't know about. Let him sort out for himself what he wants to do unless he asks for advice. But with your $55K income you cannot hope to bail him out so don't let him convince you to give him any money. His disability insurance policies likely terminate in a year when he is 65 so he will be dependent on his income and SS for the rest of his life. My guess is there is another bankruptcy in his future. If so you don't want to have his name on the title of anything you have money invested in. This includes your grandmother's house.
Actually I was thinking your offer should be you would spend the next couple of weeks getting it squeaky clean so they could get it on the market as fast as possible. You could also offer to stay there until it is sold to make sure it stays clean and doesn't get vandalized. It could take longer than a year to sell since you mentioned in an earlier post that houses in the neighborhood were just sitting on the market.
In terms of foreclosure on your dad's house he is the only one who can determine that. It sounds like he's been bad with money for over 40 years which means his problems go way deeper than you can help with. Also he is likely hiding alot of debt that you don't know about. Let him sort out for himself what he wants to do unless he asks for advice. But with your $55K income you cannot hope to bail him out so don't let him convince you to give him any money. His disability insurance policies likely terminate in a year when he is 65 so he will be dependent on his income and SS for the rest of his life. My guess is there is another bankruptcy in his future. If so you don't want to have his name on the title of anything you have money invested in. This includes your grandmother's house.
I have a lease through July1st.. I will throw out the other idea though, thanks.
That would be awful if the insurance stops after 65..
Mic11 is spot on. And nearly all disability insurance payments stop when Social Security kicks in. At the very least, the amount he receives will be reduced to reflect the 'new' income from SS.
Buying into your dads financial advice will ruin your life, just as it has ruined his. He clears $200,000 income per year, took out a 248k loan on someone else's house, keeps balances on high interest credit cards and pays most of his income to disability insurance? None of this makes sense and your dads finances dont add up. Who knows, the business books may be totally wrong. I dont think you know your dad as well as you think you do.
Tell him you will keep the place presentable while he tries to sell it. Dont buy into this disaster in the making.
If Dad can't get his act together on $200K a year, he can't get it together. He's already lost family member's money and his own - next is you, OP.
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