My mom’s housing assistance has been revoked. She’s been on housing assistance for at least 16 years and she lives off of a $623 Supplemental Security Income. She can’t afford to pay full rent so my sister and I have decided to buy her a house and split the mortgae payment between the three of us because it will be cheaper than renting.
I found a house in my daughter’s current school district for $73,000. (I drop my daughter off at my mom’s house to take the bus to school).
My sister’s credit is a little crappy so I have to put the house in my name. But talking to the mortgage broker I have to have $10,000 in the bank for two months before they will issue the loan at a 7.2% interest rate.
I don’t have $10,000 in the bank but I do have at least $10,000 in home equity. So now I have to jump on the home equity offer I refused a couple of weeks ago. And low and behold, Midfirst is dragging its tale. Shit! I should have went with Chase.
My realtor is going on vacation for a week and I want to make an offer on the house before it’s sold but… what if something goes wrong with the home equity loan. Lord knows I shouldn’t make an offer before that money is in the bank. Arg!!! This is stressful.
But since my realtor is leaving for a week I went ahead and told him to make an offer. Lord, I hope I am doing the right thing. Pray for me.
If Midfirst doesn’t call today, I am going with Chase. But maybe I should be patient. Stop jumping around and rushing things. Maybe this isn’t what God wants. Maybe my mom isn’t ready for the responsibility and maybe I’m not either. I know my sister isn’t.
And did I mention that I was going to pay my part by diverting my tithes from the church to the mortgage payment. Do you think paying my mom’s mortgage can be considered a charitable contribution?
Follow me as I try to keep all of my balls up in the air at once: finance, diet, relationship, etc. Wish me luck.
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2008 Financial Goals
NetWorth
Start: -$24,413
Current:$-7,341
Goal: -$9,413 (+$15,000)
HELOC
Start:$10,000
Current:$9,883
Goal:$5,000
Credit Card Debt
Start: $7,551
Current: $0
Paid Off: $7,551
Savings Acct.
Start:$900
Current $2,600
Goal: $3,600 (changed from $2,500)
Roth
Start: $0
Current: $1,050
Goal: $300
529
Start: $0
Current: $250
Goal: $300
Start: -$24,413
Current:$-7,341
Goal: -$9,413 (+$15,000)
HELOC
Start:$10,000
Current:$9,883
Goal:$5,000
Credit Card Debt
Start: $7,551
Current: $0
Paid Off: $7,551
Savings Acct.
Start:$900
Current $2,600
Goal: $3,600 (changed from $2,500)
Roth
Start: $0
Current: $1,050
Goal: $300
529
Start: $0
Current: $250
Goal: $300
3 comments:
I want to wish you good luck and move on just minding my business. But this post scares me. Don't do things you know you're uncomfortable with - there is good reason for your discomfort. Always take your alternatives seriously when not taking them would mean putting your posterior on the line. It sounds to me like you're not financially ready for the responsibility, though I don't know your whole situation. Regardless of what the lender says he can give you, YOU are the final decision-maker on whether you can afford putting a house in your name, after BORROWING money to BORROW even more money. Since you're a tither, I'm assuming you pray too. My suggestion is that you pray - not to get the house, but to find out whether you should attempt to get it.
One more thing - if your sister's credit isn't good, then how do you know she'll be able to continue footing her part of the bill? If the creditors don't think she can pay for things, why should you? Trusting your sister's good intentions is good, but realizing that one emergency on her end could stick you with the full payment on your mom's house is even better. If you can't afford to pay it all by yourself, then it shouldn't go in your name. Think worst case scenario: you don't want your mom's home to be in jeopardy, again, like it is now.
I hope I haven't been too presumptuous, and I'm sorry if I came off too strong for a stranger. I mean well.
I think that it is wonderful that you are buying your Mom house, but in the long run it will be a financial strain on you.
Pay off some debt first and save more money. Let the house go until you are ready.
Have your Mom move in with you or your sister until you are able to buy the house
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