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/biz/ - Business & Finance

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539818 No.539818 [Reply] [Original]

Hey /biz/

So my wife own's half of a house with her father in Queens, NY. His holding is mostly to pay property taxes and homeowners insurance. Her mentally ill mother lives there, so selling it or renting it is not a possibility The house is worth about 650k as of now.

I investigated at a bank, but they told me a house was not a liquid asset, therefore it does not help up obtain a mortgage for a home where we might want to buy. Is there anything we can do to help ourselves with the holding? Or do we have to wait until her batshit mother gets fully committed or kick the bucket?

>> No.539823

Your wife and father-in-law could have her removed from the house if they wanted. The house still wouldn't be a liquid asset though.

>> No.539824

>>539823

I think both parties are extremely worried about the costs of care fro someone with severe borderline personality disorder.

Old people these days linger, she's only 67

>> No.539827

>>539824
I don't know to tell you on that part. As for buying the new home, you could try getting them to take out a home equity loan against the 650k house.

>> No.539829
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539829

OP here

How this happened was the mother went especially crazy one day and was committed. But her father convinced the mother to transfer the property to his name and her daughters (my wifes) name. I believe medicare would have taken the house if she would have gone on assisted living. Now she lives there with a family member who watches over her. There was also something about a five year rule with assets...that medicare couldn't take the house if she didn't own for five years or something.

>> No.539857

>>539824
See if you can make her a ward of the state. I have a mentally ill family member that lives in a home paid for by the government. It's decent living if you can find a good home. I don't know how it works but it probably varies state to state. I really don't know how you go about finding the caseworker who would help you, but there's probably a government agency of some type that can help. Your father in law might also have to divorce his wife for this to be viable. It's probably a convoluted process, but it will help protect your family's earnings.

>> No.539878

>>539857

They are divorced. As a matter of fact, I think that's been his whole plan all along. He convinced her to sign over the house to him and my wife because he told her if she became a ward, the state would seize her assets. Rather then the house going to state, it could go to her daughter. The thing I don't understand is this cryptic five year thing. Now that she doesn't own her property, when CAN she become a ward of the state?

>> No.539910
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539910

>mfw my wife owns a house that we can't access or get income from

>> No.539917

>>539818
If your wife and your father in law co-sign, you might be able to get a reverse mortgage as long as the house is completely payed for, or else you can borrow against the property with a personal loan ( after in law most co-sign too) But this will carry a higher interest rate than the mortgage

>> No.539929

>>539917
Reverse mortgages require you to be at least 62. A home equity loan has no age requirement.

>> No.539935

OP here. I think home equity is possible. My wife has 790 credit (I have 690). We just have no down payment saved yet and I have student loans. What kind of interest rate are we looking at with a home equity loan?

>> No.539984

So here's the deal

>wife own's house with father
>father is power of attorney to crazy ex wife
>half owner of mother's home
>she put it in their names to protect it from state seizure if she went to the looney bin
>mother's home in NY is valued at $600,000+
>wife has no debt
>I have 30k in student loans
>her credit score is 790, mine is 680
>no CC debt, 10k each in banks
>no down payment saved
>married
>both have jobs
>160k combined income
>father pays prop taxes, ho insurance on NY property
>looking to buy about 300k-350k house in the Sacramento Area (depressed market)

Should we take out a home equity loan and use it as a down payment to buy here in CA? or just save cash and keep throwing away money in rentals?

We are definitely staying here and our jobs are public and highly stable. We have no idea when her mother will stop living their. It could be a decade or more. It's kind of sad to see my wife own half a house in the NY metro area and not get anything from it but a roof over her mom's crazy head.

>> No.539996
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539996

bumping for interest, I always thought home equity loans were a great way to commit financial suicide.

But this may be the perfect solution for us.

pic related

>property valued at 300k (my wife's half)
>0k owed
>assuming decent credit
>again we pay no taxes or HO insurance on NY property

>> No.539998

>>539996
>financial suicide
It depends on what you're using the loan for. Using it to consolidate debt or increase your real estate value can be fine.

>> No.540046
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540046

>calculated $1700 min payment with taxes, mortgage and home equity loan

>> No.540182

>>539929
Since op said his mother in law was 67 I figured the father in law (co-owner) should be around the same age, therefore qualifying for the reverse mortgage

>> No.540184

>>539935
I would think 3% over prime at most but I would depend in your income bracket