if lucy moves into the inherited house, by how much will her monthly housing cost increase or decrease?
79429
It depends on whether or not she keeps the condo.\n\nIf she does, it would be a 100 dollar increase.\nIf not, a 200 dollar decrease.\n\nOn the other hand, she could just sell the new house, and there would be no change, and she would have enough in savings to keep her condo for about 25 years.
510658
Raise the purchase price of the house by 15%. Write up the sales contract for the asking price plus the 15%, then in the purchase contact indicate that the seller will be doing a 15% second mortgage, you will have to include terms and monthly payment and supply that info to your bank because he will include the new payment in your monthly debt ratio (DTI). After close you have the seller hand you a satisfaction of lien document. You take that down to the court house in the county where you live and remove the second lien on the property. So how this works is the following:\n\nAppraisal = $120,000\nAsking price = $100,000\n15% of asking price = $15,000\nNew Purchase Price = $115,000\nBank loan (85% of purchase price) = $97,750\nseller second = $17,250\n\nYou can move the purchase price around if needed, you may want to also consider raising the purchase price enough to have the seller pay the closing costs as well! \n\nGood luck...
478100
no. the only thing the bill collectors can do is try to get their money from her estate if she owned anything of value- such as a house.
15765
Your father didn't inherit the house from probate  --  someone left it to him in a will, and it has come out of probate, he now has title, and wants to convert it to cash.  The house would probably be worth more to a prospective buyer, so they wouldn't have to go through the trouble of evicting you should you decide not to move.  Given your father's  inheritence windfall, he might be willing to pay your moving expenses (and more) to get you to mpve.  Laws vary by City and State.  Contact a local or nearby renters rights organization.  Sorry I can't help you more.  Good Luck.
996584
Yes it is a Life Estate.  If she moves, though, the estate is terminated, unless it is to somewhere such as a nursing home.  If it is used as a rental, the occupancy is terminated.  The key word is "Occupy".\n\nTechnically, they do have the right to occupy the property as well.  They own it.  Unless there is a stipulation that states she is to pay for everything, she can stop paying the taxes, etc., and it's the owner's responsibility to pay it.  Unfortunately that means all of the children, not just who is living there.\n\nGood luck  :)
786721
You need a tenant homeowners policy with probably a computer and jewelry floater attached.  \n\nYour best bet is to contact a local, independent agent, and sit down with them to figure out how much this is going to cost you.
463182
That depends a lot on where you want to live.  Here in Southern CA, I don't think it will.  First of all, LA & San Diego are slowing due to the latest fed hike in interest rates.  But, because the demand is so much larger than the supply, the pressure for new, affordable homes is still strong.  Unfortunately, with the median price of a home at around $550,000, the income necessary to support monthly mortgage payments is above what most in the middle class make right now.  \n\nBut, you are starting to see some slowing and stagnation in less desirable markets.  That is where "the bubble" will burst, first.  Places like Cleveland, Louisville, Nashville, St. Louis, etc.  Watch as the interest rates go up, more houses will dump on the market because people with variable rates cannot afford the increases monthly.
999059
Legally she can, unless the will specifies that the house is to remain in her possession until she dies and then passes on to you.  From just that one sentance it is clear that your grandmother desired to look out for your welfare also, however if she willed everything to her daughter with an "express desire" and your mother wants to sell the house you would have to fight it in probate court.  With just the information you've given it's hard to say, but it sounds like you are concerned that your mother is going to sell a house and you don't want her too.  If that's the case you need to get a consultation with an attorney familiar with Probate and he can let you know where you stand on the issue of the house.  A lot depends on what the entire will specifies.  Good Luck!!
1179007
Three family homes in my area go for 350k-450k on average.  (350k or 450k / 3 Apts)*1% = $1167 or $1500/mo\n\nSo in my area (north of Boston), I would say your formula fits.  But housing in MA is fairly expensive.  This rate may be too high for other areas were the cost of living is significantly lower.\n\nAs a rule of thumb this could be a good 'guesstimate' of what ball park you should be in; but you should adjust this for neighborhood area, quality of space, cost of living, and other factors.
957424
From the information you give, you can't prove that it is a bad idea.  Don't get me wrong, you are probably right - but only probably.  Furthermore, home ownership has many benefits that don't show up in a cash flow statement right away.  If she can really make it work, with a stable loan payment and everything (fully amortized and with the rate fixed for at least five years), chances are that she'll come out way ahead.\n\nWhen you first buy, owning is more expensive than renting.  If it isn't, why didn't you buy earlier?  If she can barely make it work renting, chances are against her.  Principal and interest on the loan - rates for people with good credit are in the high fives to low sixes right now (thirty fixed), depending upon how much you pay in points.  Take the loan amount and any financial calculator will tell you how much that payment will be.  Property taxes (every state is different.  Call the county tax collector).  Homeowner's insurance (ask an insurance agent).  Association dues, if any.  Utilities will be about what she;s paying now if the properties are of similar type, but she'll need a  Monthly allowance for maintenance - she'll need to build up a reserve because this stuff happens.  How much do people spend in your area?  If you're a property owner, you should know.  Not to mention all the money most people blow on home furnishings when they first move in.
206041
I don't think such a financial vehicle exists.  If she only owns half the house, somehow she has to "pay" for the half she doesn't own.  She could pay that in the form of rent to you or someone else, or in the form of a mortgage.  If she could get a reverse mortgage, she would pay for it in the form of losing equity in the house.  But in someway she has to "pay" for it.  \n\nIf she is not willing pay any money at all, the best thing is to sell the house, and she can move into a smaller house.  She can't afford the current house.  If she won't sell, you shouldn't move out.
1038174
Time for getting past what caused the split and figure out how between the 2 of you to get the best value from the situation.\n\nFirst if you can, you need to lower your price.  \n\nNow use the kids ballpark divvy system.  Remember when you were a kid and had to share a candy bar with a friend.  One of you would break the candy bar in half and offer the choice to the other person as to which half they wanted.  Simple but fair and very effective.\n\nWhat I'm suggesting is that you agree between yourselves that one of you will make an offer to move into the house until it sells and makes some sort of payment as rent.  Now that might be the whole payment or a partial payment, either way it should be better off than each of you paying half of the payment on a vacant house.  So the agreement is made and the offer is made, now the other person (not making the offer) has the choice of either moving back in or letting the offeror move back in.\n\nIf moving back in isn't an option for one or both of you get creative and work out some other sort of arrangement.\n\nGood luck
885901
If she was on Medicare, there is a death benefit I believe it is like $250 only.  Did she own any property that you can sell? A home, furniture, jewelry? If the answer is no, then you will have to tell the funeral director that you cannot pay the bill in full- make arrangements for a payment plan, and also, check his bill to what is the acceptable fees for your area- you can go online and get that info from your state.....if you do not own a home, there really isn't anything the funeral director can do.   Sorry for your loss
736318
Hello\n\nIf she buys a second home then gives it to someone else in your family, or she gives someone else in your family the money to buy a home; and she dies within 7 years, then inheritance tax may be payable.\n\nIf the total value of her estate, which includes all: property, cars, assets, cash, etc... exceeds £263,000; then 40% tax must be paid on the rest.\n\nIf shes gives away a gift (home, cash, etc...) then lives for 7 years then it is safe from inheritace tax.\n\n\nFor example: \nScenario a)\n - she gives you a £150,000 house;\n - she has another home worth £150,000; \n - she has £63,000 in funds in the bank; and\n - she dies in 6 years.\n\nTotal value of estate: £363,000.\nInheritance tax allowance: £263,000.\nTaxable amount after allowance: £100,000.\nTotal inheritance tax payable: £40,000.\n\nScenario b)\n - she gives you a £150,000 house;\n - she has another home worth £150,000;  \n - she has £63,000 in funds in the bank; and\n - she dies in 10 years.\n\nTotal value of estate: £213,000.\nInheritance tax allowance: £263,000.\nTaxable amount after allowance: £0.\nTotal inheritance tax payable: £0.\n\n\nThanks
797879
I edit my previous response because I asked my tax professor about this situation, and he said that the retention of the life estate on the part of the parents would indeed affect the basis price in the house -- but he said the matter was complicated and not something that we would cover this year in Federal Income Tax (I suppose it may come up again in Estate Planning: Practice).  So my original answer is pretty wrong.\n\n---\nOriginal answer follows:\n\nThe tax basis for the children would be the $300k that they paid as fair market value for the house.  You could view the life estate as something granted to the parents, but I don't believe it would have a tax impact on the parents or the children.  I think if you look at it from a policy perspective, if we were to have to consider the value of the life estate to the parents, we would have to consider an intangible item of indeterminate value, and it would be a tax nightmare to try to tax the parents on the value of the life estate, and to balance the value of the life estate against the basis for the purchasing children.\n\nIt seems in the problem, though, that the better solution would be to have the parents retain the house and then grant it to the children in their estate, as the children would get the "free" step-up in basis on death -- and then thereby the children would receive the property with the FMV as the current basis, regardless of the parent's basis.\n\nWe covered this stuff earlier in this semester in Federal Tax, and I don't recall there being any special situation where the value of the life estate had to be considered in the tax situation when computing basis.
201789
If the house was already in the children's names, then there was no inheritance.  Therefore it would be considered a sale of real estate.  I believe the basis of the house would have been the basis on the date of the transfer, not the appraised value.  Don't forget to add the cost of any improvements to the original basis.\n\nFor more information go to the IRS website and download Publication 523 - Selling Your Home.  If that doesn't help, call the IRS directly.
258022
If she doesn't mine you living there and you and your kid likes it you could stay a while and save up some money for a down payment on a house or something. But if you are not happy then by all means move out.