Great News and opinions wanted.

**Jeanna** · 01-19-2006, 08:11 AM

Good morning ladies,

I just have to share some great news. We are getting a house. What I mean by that is that we are being "give" my husbands grandfathers house. Here is the situation. He is still alive. He is in a nursing home and will never be able to go home again. My husbands father offered us the house to move into now and that if granddad dies in the next 6 months it is ours free and clear. If granddad lives past 6 months then he will have had to start paying for the nursing home monthly at a rate of $5000 a month. After the 6th month his money will be about out and at that time we will have to buy the house. However, we will get it for $70,000 or less, which is less than half of the market value.
OK, now here is the issue. We can move in now and live rent free for 6 months or we can wait for the time when either he passes or we buy the house. I think we should wait about a month and then move. My husband thinks we should wait and move when we buy it. With rent of $650 a month and power bills running near $400 I think it is only economical to move. What do you think? Oh, and my husband and his granddad have never been real close so there is no real senimental issues.
One more thing. I am not hard hearted. I hope he lives and we have to get the mortage my only question is when do you think you would move in in this situation.

guest7 · 01-19-2006, 08:44 AM

Oh boy- this is a tough one. You don't want to wish death on your GF- so I suggest you stay clear of this situation. It seems tempting but I want to look at the numbers.

I'm a little confused about who was paying the monthly fee now- GF? or Dad? When THAT $ runs out in 6 months- then who pays? Dad or you? When do you get to buy the house? in six months of moving in? or when GF dies?

**Deborah_Kate** · 01-19-2006, 08:54 AM

Well, not to sound rude or cold or anything, but if you are being given the house anyway, why not move in sooner? I'm sure you'd want to go in and clear stuff out and clean or whatever (no matter how clean a place was when I moved in, I got out the bleach.) and that could take you a month or so.

But, based on the numbers, a house will generally cost you more than an apartment (not sure of your living situation) for utilities. At least that's the way it was with us and our first house was a bit smaller than our apartment. However, if you don't have to pay rent or a mortgage payment then I'd go for it.

Deb

**homesteadmamma** · 01-19-2006, 09:35 AM

Its a tough decision and one that both of you have to be in agreement with. You also have to make sure you know EXACTLY what your getting into.

Having said that and I knew the exact numbers, legalities, etc. and they were in my favor, I would move right away.

**Jeanna** · 01-21-2006, 11:14 AM

Thanks for you guys input. Cheryl--right now Medicad is. They will pay for the first 100 days, then Grand dads money will be used and then when that is up we will have to take out a mortage to pay for his stay. Make sense? Once all his money -from us buying the house and all is gone then the Medicad will pay again. Make sence? Like I said we do not mind taking out the mortage for we were already on that path. The main question is should we move in and have 5-6 of mortage free living or wait and keep paying rent where we live. I am not in anyway wishing Grand dad dead. Anyway thanks for the input.

**Kimberlina** · 01-21-2006, 12:36 PM

Not to seem dense or anything. but why would you wait? Is there any chance at all that he would be able to move home?

IF it were ME, I would move in now. If you are going to take the house anyway, why wait? If you are not sure that you want the house, then I would consider waiting, but otherwise, I just don't get why you woldn't move in now. I don't think at all that it is about hoping he'll live or die or anything else- it is just reality that at some point, you will be getting that house. You'll either pay for it or you won't. If you are willing to pay for it, that is what I would think would matter. If you aren't willing to pay for it, then maybe I would reconsider, but in the end, as long as you definitely want the house, it doesn't matter whther you pay for it or not. Does that make sense at all? I don't think it does. I'm not expressing well what I am thinking.

**Missy** · 01-21-2006, 04:37 PM

I would move in now too. If nothing else, to keep it kept up and lived in rather than left empty. Empty houses here are just asking for vandals. Dunno what it's like there where you or the house is. But an empty house here quickly gets vandalised.

Also...would you be able to use some of the rent money you'd be saving to help granddad's nursing home stay? Would that be an option??

**Kimberlina** · 01-21-2006, 05:25 PM

Geez, I'm such a dope. I didn't even think of Missy's point, but she is SO right- vandals are an issue, and so is keeping the house maintained.

You need to keep a house heated. You need to keep the water and electricity on.

My grandparents' home was empty for over a year after my grandfather died. Even though it is literally surrounded by houses of family members, there was still concern about vandalism of some sort, so my parents installed a two-way radio and left it always on so they could hear what was going on. They had to leave a radio on, they had to keep it heated so water pipes wouldn't burst, they still had to pay taxes. in short, they still had to maintain the home even though nobody was living in it.

Thankfully, it was eventually sold to my sister's FIL, and he is taking great care of the place- it was the perfect solution to the situation. But a lot of money from the estate would have been saved if someone else had been paying the taxes and paying for oil, etc.

guest7 · 01-21-2006, 05:44 PM

What an opportunity!! Save up $ for the 5-6 months. Then buy the house from GF. The money that is given to GF for the house will be used to fund his stay at the NH. Essentially the mortgage you take out.
As long as you're not putting out $5K/mo in addition to the mortgage you hold. If the house is in your name and the $$ goes to fund NH care - I think that's the right way to do it.

It's only my opinion. It's up to you and DH of course. The worse case scenerio is.... you can't get a mortage and the NH puts a lein on the house... They can't have you move if it's your primary residence... GF dies... freeing up the house to the family and the leins and taxes get paid by someone who buys the house. That's a lot of time you have living there... rent free.

**beandsemom** · 01-21-2006, 09:37 PM

WHATEVER YOU DO, GET IT IN WRITING NOW WITH DAD and any other heirs. I would also contact the Dept. of Social Services in your county and see what repurcussions there are if he lives or passes. I'm such a cynic . . . if it sounds too good, is it?!?!

Granddad's Power of Atty can go ahead and deed the property to you (assuming he's not able to sign) with granddad retaining a life estate (for taxes and insurance purposes).

I assume if you start paying now it will affect how Medicaid pays on his NH? Also, what happens if he lives 7 months, you've taken out the $70m+ mortgage and the nursing home doesn't have to be paid.

I know there are issues with Medicaid and nursing homes and such, so that's why I'd make sure a deed is made out. Also, make sure that if there's a will, the heirs are all in agreement.