Q. There are 3 daughters and none of us want to sell the house in this housing market. We get the feeling that the estate attorney is going to pressure us to either sell it or to have one of the sisters buy out the other two. I am currently living in the house and all 3 of us are fine with keeping the house in mom's name and me living there until the housing market recovers. Is this possible??? Thanks in advance.
A. Sure... Executrix can execute a deed transferring in into all 3 of your names. This will need to be done before you close the estate anyway, otherwise, it gets tricky when you do sell & you'll have to provide a title company with a will &/or DC & Letter of Testementary (from probate) to prove your ownership & who has authority to sign.
You should however pay some sort of fair market rent (or close to it) to keep things equitable & it will also prevent any hard feelings from arising in the future. Everyone may be happy & fine with things now, but believe me, things change & people start telling others things & all the sudden, the ugly greed monster rises & everyone starts pointing fingers. It's just in people's nature to sometimes stir up trouble for others. I went through this last fall. My brother is renting some commercial space & wasn't paying rent to the estate since he just took over the business. Wasn't but a couple months & our sister kept insisting he start paying & how he was robbing the estate of income.
You can check on market rents are in your area here: http://www.zilpy.com/
Your rent could go into an estate account to make sure taxes, insurance & repairs (if needed) are paid. Once the house sells, then you all split the net proceeds equally, rather than you being shorted because you lived there rent free.
Get a tax ID # from the IRS (you can do this online) & open an estate account at a local bank. Executrix signs checks & you make rent payable to the estate. Expenses for the home & the estate can be paid from that account. When you close the estate, you all split whatever is left in the account.
You should however pay some sort of fair market rent (or close to it) to keep things equitable & it will also prevent any hard feelings from arising in the future. Everyone may be happy & fine with things now, but believe me, things change & people start telling others things & all the sudden, the ugly greed monster rises & everyone starts pointing fingers. It's just in people's nature to sometimes stir up trouble for others. I went through this last fall. My brother is renting some commercial space & wasn't paying rent to the estate since he just took over the business. Wasn't but a couple months & our sister kept insisting he start paying & how he was robbing the estate of income.
You can check on market rents are in your area here: http://www.zilpy.com/
Your rent could go into an estate account to make sure taxes, insurance & repairs (if needed) are paid. Once the house sells, then you all split the net proceeds equally, rather than you being shorted because you lived there rent free.
Get a tax ID # from the IRS (you can do this online) & open an estate account at a local bank. Executrix signs checks & you make rent payable to the estate. Expenses for the home & the estate can be paid from that account. When you close the estate, you all split whatever is left in the account.
Do residential rents ever go down or remain flat at worst?
Q. In bad housing markets (which we're obviously in), people shy away from buying property, but still have to live somewhere. That obviously means more renters in the market. Does that create a big jump in demand--and price--of residential rent? Or does a bad economy depress the price of everything? Do rents go down in hot buying markets? Does anyone have a good idea of where residential rents are going to go in the near future?
A. Yes, rents can go down. It's a matter of supply and demand.
What happens if neither spouse can afford the house after divorce?
Q. Just found out my wife has been cheating on me, and I'll be getting a divorce. Here's the situation: We just refinanced our home in November and have virtually no equity in it. Since the housing market has turned, it's unlikely that we'd get what it appraised for in a sale. So what are my options? If we both stop paying the two mortgages, it will go into foreclosure, but I'm unclear what would happen after that. Could someone please explain?
To answer a couple questions, I'm in the Seattle area. And the problem is that I doubt we could sell if for the amount that we owe on our mortgages.
To answer a couple questions, I'm in the Seattle area. And the problem is that I doubt we could sell if for the amount that we owe on our mortgages.
A. Sell it and pay the rest back to the bank, a foreclosure will not be easy to overcome later.
YOu are unclear about foreclosure? The banks own it and take it back. They may or may not sell it. They dont really care if they sit vacent for awhile.
You however, will have a terrible time getting another house, or even renting. Avoid the foreclosure.
Maybe you guys can rent it out until things are better
YOu are unclear about foreclosure? The banks own it and take it back. They may or may not sell it. They dont really care if they sit vacent for awhile.
You however, will have a terrible time getting another house, or even renting. Avoid the foreclosure.
Maybe you guys can rent it out until things are better
Benefits of renting house over purchasing flat?
Q. Hi All,
i would like to know the benefits of renting a house over purchasing in short and long term.
Request to share your comments.
i would like to know the benefits of renting a house over purchasing in short and long term.
Request to share your comments.
A. The main benefit is that it is easier to get into and out of a lease than a mortgage. You can just pay a deposit and some rent and you're in. Your lease only lasts a year (or less), and it's pretty straightforward to break a lease early if you have some hardship (e.g., losing your job). Otherwise, renting is always worse than buying.
Buying invests your money into something that, theoretically, is gaining value. When you sell it, it will be worth more than you paid. You make money. The problem is that you must find a buyer, and that can take time. You need to know your market. Buying and selling condos in the US, for example, is tough. They don't appreciate in value as much as houses, and there aren't as many buyers for them. But, here in London, there's a brisk market in flats, so buying and selling isn't quite as difficult.
Buying is investing, renting is throwing money away. There's a saying: "you're always paying a mortgage. if you're lucky, it's your own."
If you are worried about needing to quit your place on short notice, renting is much better. If you have time and stability, buying is better.
Buying invests your money into something that, theoretically, is gaining value. When you sell it, it will be worth more than you paid. You make money. The problem is that you must find a buyer, and that can take time. You need to know your market. Buying and selling condos in the US, for example, is tough. They don't appreciate in value as much as houses, and there aren't as many buyers for them. But, here in London, there's a brisk market in flats, so buying and selling isn't quite as difficult.
Buying is investing, renting is throwing money away. There's a saying: "you're always paying a mortgage. if you're lucky, it's your own."
If you are worried about needing to quit your place on short notice, renting is much better. If you have time and stability, buying is better.
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